Cradle Fund says AI startups now make up to 70% of its applications

Cradle Fund group chief executive Norman Matthieu Vanhaecke told a panel at the Alliance Bank BizSmart Business Conference that the AI startup market is becoming very crowded. According to The Edge Malaysia, AI-related startups account for roughly 60% to 70% of the estimated 1,000 applications the agency receives each year.

Key points

• Vanhaecke said there is a sharp rise in startups calling themselves AI-driven, AI-enabled or AI-native, making it harder to decide where public money should go.
• Sunway iLabs chief operations officer Karen Lau said investors must separate real AI capability from branding, and look at how defensible the technology is.
• 1337 Ventures chief executive Bikesh Lakhmichand said his firm backs founders' sector expertise, and warned that generic AI applications may face more competition as foundation models improve.

Why it matters for Malaysia

When most applicants carry an AI label, the label stops helping founders stand out, and public funders have to judge traction and real capability instead.

Questions answered

How many Cradle Fund applicants are AI startups?

According to The Edge Malaysia, AI-related startups make up roughly 60% to 70% of the estimated 1,000 applications Cradle Fund receives each year.

What are investors looking for in Malaysian AI startups?

Panellists said investors increasingly value traction, market potential and scalability over an AI label. They also look at how defensible the technology is and whether it addresses specific workflows.