Factors That Attract Venture Capitals to New Ventures

Post on 17-Nov-2014

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Teak Capital Deck on Factors that attract venture capitals to new ventures @ the 2nd Asia Pacific Conference On Business Incubation & Entrepreneurship 1 April, by Eliza Noordin

Transcript of Factors That Attract Venture Capitals to New Ventures

•Source of funding •What do VCs do?•VC landscape in Malaysia•What do we look for•What attracts us

WHAT WILL I COVER

STAGES OF A COMPANY

Source Government Private or Semi-Private High Net Worth Individuals

Equity No equity involved Equity of the company Equity of the company

Goal Completion of IP creation, commercialisation

Return$ Return$ & Exploring new ventures

Duration Short term (<1 year)

3-5 years Unknown, usually long term

Payback Only if defaulted Upon exit or as mutually agreed

Mutually agreed

Reporting Milestone or Reimbursement basisprovider not involved in managing company

Depends on the stage of the companyrepresentation on the Board of Director

Loose

Coaching Not inclusive Inclusive through investment

Depends on angel’s available time and interest

VENTURE CAPITAL IN MALAYSIA

Source : 06-09 SC Annual Reports

VC INVESTMENT IN MALAYSIA

RM (Billion)

Source : 06-09 SC Annual Reports

INVESTMENT BY COMPANY STAGE

Source : 06-09 SC Annual Reports

VC INVESTMENT IN THE US

Source : venturedeal.com

• have a cohesive management team

• Focus in making revenue and profit, or at least proof that customers BUY your idea or product

• Manage your cash flow

• HIRE staffs with RELEVANT skill sets

• Get a sales man

• Get a good financial person – keep good books

• Get a GOOD & balanced Board of Directors

• Get mentor(s) and/or coaches

• Grants are nice, but don’t become grantpreneurs

• Stay focus to achieve your planned goals

Knowing your needs…

• Why do you need funding?

• What is the stage of your company ?

• What are your seeking for?

• Where is your market potential?

• Equity?

Knowing what’s available

• Funds , loans and grants

• Fund provider background & appetite

• What do investors want?

• Venture Capital• Active participation• Experience in working with

Tech companies• Network and global linkages

Areas of interests :• Software and IT, Internet,

Wireless & Mobility, High Growth Technology, Electronics, Green Tech

• Start-up to Pre-IPO stages

Chok Kwee Bee : Managing Director

CK Chong: Senior Vice President

Eliza Noordin : Vice President