MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

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MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

  1. 1. Raising funds In today’s Economy Powering your start-up Presented by Bob Chua – CEO Pulse Group PLC (Ticker: PGRP)
  2. 2. “ Money Makes Money ”
  3. 3. <ul><li>Powering growth </li></ul>Sources of funding Starting-up Solid Business Idea Strong Management Fund’s to Grow IP Protection
  4. 4. <ul><li>Stages of funding </li></ul>Sources of funding $ Year’s Pre-Seed $25K-$50K Seed $150K-$500K Series-A $1m-$10m Series-B $5m-$15m Mezzanine/Pre-IPO $10m-$20m IPO $40m-$500m Second round $Xm
  5. 5. <ul><li>Sources of funds </li></ul><ul><ul><li>Pre-seed (3F’s Family, friends and fool’s) </li></ul></ul><ul><ul><li>Seed (Grant’s, Seed-fund’s, Angel’s) </li></ul></ul><ul><ul><li>Series-A, B, C, D (VC’s) </li></ul></ul><ul><ul><li>Mezzanine/Pre-IPO – PE’s, Private Investors, or Institutions </li></ul></ul><ul><ul><li>IPO – Financial Institutions and Public </li></ul></ul><ul><ul><li>Secondary round’s – PE’s, Hedge Funds, Public etc. </li></ul></ul>Sources of funding
  6. 6. “ Nothing is FREE in this World”
  7. 7. <ul><li>Selecting Investors </li></ul><ul><ul><li>What they’re looking for from you </li></ul></ul>Sources of funding Track Record Profitability Revenue Solid Product’s/ Services IP Protection Clean Structure Clean Accounts Strong Management Clear Exit Strategy Scalability Clients Brand Clear Vision Board Seat Brand Energizers Financial Modeling
  8. 8. <ul><li>Selecting Investors </li></ul><ul><ul><li>What you should be looking for from them </li></ul></ul>Sources of funding Value-Add Synergistic Investee’s Synergistic Team Domain Expertise Strong Board Member/s Track-record Good and Fair Valuation Good reputation Deep-pockets
  9. 9. “ What now? ”
  10. 10. <ul><li>Responsibility </li></ul><ul><ul><li>Spend Proceeds Wisely </li></ul></ul><ul><ul><li>Invest for the future </li></ul></ul><ul><ul><li>Be conscious of the investment tenure, terms, and exit strategy </li></ul></ul><ul><ul><li>Deliver on your promises </li></ul></ul>Post funding
  11. 11. The Economy Today
  12. 12. The realities of 2009 and beyond <ul><li>2009 is going to be a tough year </li></ul><ul><li>Investors are sitting on piles of cash, there IS money out there </li></ul><ul><li>Exit Strategies are unclear </li></ul><ul><li>Valuation’s will be brutal </li></ul><ul><li>Shareholder value will be critical </li></ul><ul><li>Cost of capital will be high </li></ul><ul><li>There will be as many opportunities as there are challenges </li></ul><ul><li>Survival of the fittest </li></ul>
  13. 13. Closing Thoughts <ul><li>Put your money where your mouth is </li></ul><ul><li>It’s about the fast eating the slow, not the large eating the small </li></ul><ul><li>Tread carefully with external funding, but raise funds nonetheless </li></ul><ul><li>Timing is everything </li></ul><ul><li>Scale your business quickly </li></ul><ul><li>Create and illustrate profits </li></ul><ul><li>Continue to aim for the next big thing </li></ul><ul><li>Deliver shareholder value </li></ul>
  14. 14. Words of Wisdom “ A Pessimist finds problems in an opportunity. An Optimist finds Opportunity in a problem” – Winston Churchill
  15. 15. Thank You [email_address]

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