Hong Kong Funding Options presentation at BarCamp HK
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Transcript of Hong Kong Funding Options presentation at BarCamp HK
![Page 2: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/2.jpg)
Why you’re in the right place to raise some money
and not get screwed
Dr. Cory KiddFounder and CEOIntuitive [email protected]
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Initial Split
Founder A 45%
Founder B 30%
Founder C 25%
Example: Raise 3 Rounds
![Page 4: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/4.jpg)
Initial Split Raise 200K for 20%
Founder A 45% 36%
Founder B 30% 24%
Founder C 25% 20%
Investor A 20%
Example: Raise 3 Rounds
![Page 5: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/5.jpg)
Initial Split Raise 200K for 20% Raise 750K for 15%
Founder A 45% 36% 31%
Founder B 30% 24% 20%
Founder C 25% 20% 17%
Investor A 20% 17%
Investor B 15%
Example: Raise 3 Rounds
![Page 6: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/6.jpg)
Initial Split Raise 200K for 20% Raise 750K for 15% Raise 3M for 15%
Founder A 45% 36% 31% 26%
Founder B 30% 24% 20% 17%
Founder C 25% 20% 17% 14%
Investor A 20% 17% 14%
Investor B 15% 13%
Investor C 15%
Example: Raise 3 Rounds
![Page 7: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/7.jpg)
Initial Split
Founder A 45%
Founder B 30%
Founder C 25%
Example: Same Funding, One Investor
![Page 8: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/8.jpg)
Initial Split 200K Incubation
Founder A 45% 45%
Founder B 30% 30%
Founder C 25% 25%
Example: Same Funding, One Investor
![Page 9: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/9.jpg)
Initial Split 200K Incubation 750K Loan
Founder A 45% 45% 45%
Founder B 30% 30% 30%
Founder C 25% 25% 25%
Example: Same Funding, One Investor
![Page 10: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/10.jpg)
Initial Split 200K Incubation 750K Loan Raise 3M for 15%
Founder A 45% 45% 45% 38%
Founder B 30% 30% 30% 26%
Founder C 25% 25% 25% 21%
Investor A 15%
Example: Same Funding, One Investor
![Page 11: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/11.jpg)
Examples ComparedInitial Split Raise 200K for 20% Raise 750K for 15% Raise 3M for 15%
Founder A 45% 36% 31% 26%Founder B 30% 24% 20% 17%Founder C 25% 20% 17% 14%Investor A 20% 17% 14%Investor B 15% 13%Investor C 15%
Initial Split 200K Incubation 750K Loan Raise 3M for 15%
Founder A 45% 45% 45% 38%Founder B 30% 30% 30% 26%Founder C 25% 25% 25% 21%Investor A 15%
![Page 12: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/12.jpg)
Examples Compared
• Sell for $30 million
• In the 3 rounds of investors case, Founder A’s share is $7.8 million*
• In the incubation program, loan, and one investor case, Founder A’s share is $11.5 million*
*with preferences and other terms that come with many investor shares, the math won’t work out quite this simply, but the magnitude of the difference will be similar
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So what can I do?
• Join an incubators/accelerator program
• Get a loan
• Generate revenue
• Be Lean
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Two HK programs
• Hong Kong Science Park Incu-Tech Programme (or newer Incu-App Programme)
• SERAP interest-free loan
![Page 15: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/15.jpg)
Incu-Tech
• 3 year incubation program
• Rent-free office space for the first year
• Partial expense reimbursement up to HK $645,000
• At Hong Kong Science and Technology Park
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Incu-Tech: Application
• Applying is like raising money -- you’ll present a business plan to convince the committee that you’re building a company that should be in the program and the technology park.
• Plan 2-3 months from start to approval if you have your plan together.
![Page 17: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/17.jpg)
Incu-Tech: Questions?
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SERAP
• Stands for Small Entrepreneur Research Assistance Program
• It’s an interest-free loan that gets paid back as a percentage of revenue or later investment
• Maximum amount is currently HK $6 million
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SERAP: Application
• Applying means you have to convince the committee that you have a technologically innovative project that will make money in a few years.
• It’s defined by the “project” and not the company, so you present details of the work that you’re doing.
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SERAP: Application
• The hardest part is the budget: you need a detailed, line-by-line, month-by-month budget for the duration of the project
• Plan for a month of application preparation and then 2-3 months from submission to project start
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SERAP: Questions?
![Page 22: Hong Kong Funding Options presentation at BarCamp HK](https://reader034.fdocuments.in/reader034/viewer/2022052618/54b3ffd24a7959d6358b45cf/html5/thumbnails/22.jpg)
Other Resources
• Many other programs and spaces:
• Accelerator HK
• HAXLR8R (Shenzhen)
• Co-working spaces like CoCoon, the Hive, BootHK
• Cyberport
• Other ITC (government) funding schemes
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Other ResourcesPeople:
There are a lot of people in Hong Kong -- and here today at BarCamp -- who have created growing companies. Find us in person or online and ask your questions.
I’m always happy to provide more information about how we have funded Intuitive Automata and how you can apply those lessons to your startup.