Financing For Geeks Power Point Presentation

FINANCE FOR GEEKS Introduction To The Fun World of Venture Capital

Essential Ingredients For Success
Innovative Product
Market Identification
Solution To A Problem
Strength of Team/Management
Commercial Viability

Importance Of Business Plan
Connect & Present Ingredients For Success
Reference For Ongoing Internal Planning
The Most Critical Document To Secure Financing

Stages Of Funding
Pre-Seed: Concept To Business Plan
Seed: Plan To Prototype
Series A: Product To Revenue
Series B: Revenue To Profit

Long-Term Finance Plan
A Finance Strategy articulated in a Plan is valuable in assuring you are able to secure sufficient capital at the beginning of each Stage to get you to the next stage.
A second funding raise within one Stage is not good and to be avoided.

Know Your Prospective Investors

Their Objective Is To make Money
Not Support A Hobby
Not Support A Cause
Not Win First Prize In A Science Project

Investment Criteria
Preferred Industry
Preferred Stage of Development
Preferred Funding Levels
Preferred Funding Structures
Preferred Level of Control
Expected Exit Strategy –Time Horizon & ROI

Valuation
Valuation is a determination of how much someone would be willing to buy your company.
It is a relative term as there is no one correct valuation

Different Basis For Valuation
Asset-Based
Financial Projection Based
Comparison Based
Strategy Based

Funding Considerations
Sufficient Funding
Funding Structure
Non-Financial Considerations

Public Funding Sources In Thailand
National Innovation Agency
National Science & Technology Development Agency (NSTDA)
SME Bank

NIA Programs
Good Innovation, Zero Interest Scheme
Technology Capitalization Scheme

NSTDA Programs
Incubator Programs located at both Software Park & Thailand Science Park offer facilities and advisement
Thailand Science Park-Technology Business Incubator (TSP-TBI) offers seed financing as well

SME Bank Funding Programs
Limited Seed/Microfinance Financing Programs
Venture Capital Financing
Venture Capital Department that offers advisement and matchmaking Services
Credit Facilities specifically designed for Small businesses
Alternative Funding Facilities such as Factor Financing

Private Funding Sources In Thailand
Angel Investors
Venture Capital Firms
Private Equity Firms

Angel Investors
Where Are They?
No Identifiable Forums or Associations
Friends & Family appear to be the only source of Angel funds in Thailand

Venture Capital Firms In Thailand
Tend to Specialize in Specific Industries
Prefer to invest in Series B and later stage companies
Thai VC Firms typically invest within the 5 to 10 million Baht funding level
Basically Thai VC Firms prefer to invest in Series B Stage companies at Series A funding levels.

Funding Gap In Thailand
If there are no identifiable Angel Investors and VC firms prefer investing in later-stage companies who in Thailand invests in Series A companies?

Private Equity Firms In Thailand
Prefer to invest in more traditional industries
Typically invest in the $5 to 10 million USD funding level
No private equity placements are permitted in Thailand, reducing the number of funding opportunities with Private Equity firms
Funding secured from Private equity firms is a favorable option for those companies preparing to go public

The Thai Venture Capital Association (TVCA)
Established in 1994
Consists of both VC and Private Equity firms.
www. Venturecapital.or.th

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Financing For Geeks Power Point Presentation

by David Shelters on Jun 07, 2009

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