Factors That Attract Venture Capitals to New Ventures


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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

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  • Thank you for inviting me.
  • What I will share with you briefly are the follows:
  • Total investment 1.1, 1.8, 1.929, 2.6
  • Capable, passion coachable, relevant domain & industry knowledge, trustworthy management team Product that customers want to buy Market potential beyond Malaysia and the region
  • Venture Capital is a type of  private equity  capital typically provided for early-stage, high-potential,  growth  companies in the interest of generating a return through an eventual realization event such as an  IPO  or  trade sale  of the company. We manage high networth individuals or institutional funds and make investment of their behalf with an interest to make returns. Teak Capital is a Malaysian based Venture Capital Management company founded in Oct 2008. It is one of the 54 registered Venture Capital management companies with the Securities Commission. We are also one of Malaysian Venture Capital (Mavcap) outsourced partners. Every VC is unique as each and every one of us has our own goals, appetite, style of investing, managing and working with companies. As for TC, we choose to be active in our investee companies as we believe in growing together with the companies. Let me introduce you to my colleagues. Ms Chok is the MD, and he was the MD of BI Walden, a VC set up in Malaysia as a Joint Venture between Walden International ( a JV based in Silicon Valley) and Bank Industry (now known as SME Bank). Prior to this she was Senior General Manager and Head of the Corporate Finance Department at Arab-Malaysian Bank, the largest Merchant Bank in Malaysia where she participated in listing for more than 100 companies. Chong has vast experience in semiconductor industry and prior to joining BI Walden, he was at Motorola where he grew as a season investment manager. My core area of interest is ICT and prior to Teak Capital, I was with Microsoft. s The company was founded by Ms Chok Kwee Bee, CK Chong and I. Every VC has its own style of managing companies
  • Factors That Attract Venture Capitals to New Ventures

    1. 2. <ul><li>Source of funding </li></ul><ul><li>What do VCs do? </li></ul><ul><li>VC landscape in Malaysia </li></ul><ul><li>What do we look for </li></ul><ul><li>What attracts us </li></ul>WHAT WILL I COVER
    3. 4. 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 basis provider not involved in managing company Depends on the stage of the company representation on the Board of Director Loose Coaching Not inclusive Inclusive through investment Depends on angel’s available time and interest
    4. 7. VENTURE CAPITAL IN MALAYSIA Source : 06-09 SC Annual Reports
    5. 8. VC INVESTMENT IN MALAYSIA RM (Billion) Source : 06-09 SC Annual Reports
    6. 9. INVESTMENT BY COMPANY STAGE Source : 06-09 SC Annual Reports
    7. 12. VC INVESTMENT IN THE US Source : venturedeal.com
    8. 13. <ul><ul><li>have a cohesive management team </li></ul></ul><ul><ul><li>Focus in making revenue and profit, or at least proof that customers BUY your idea or product </li></ul></ul><ul><ul><li>Manage your cash flow </li></ul></ul><ul><ul><li>HIRE staffs with RELEVANT skill sets </li></ul></ul><ul><ul><li>Get a sales man </li></ul></ul><ul><ul><li>Get a good financial person – keep good books </li></ul></ul><ul><ul><li>Get a GOOD & balanced Board of Directors </li></ul></ul><ul><ul><li>Get mentor(s) and/or coaches </li></ul></ul><ul><ul><li>Grants are nice, but don’t become grantpreneurs </li></ul></ul><ul><ul><li>Stay focus to achieve your planned goals </li></ul></ul>
    9. 14. <ul><ul><li>Knowing your needs… </li></ul></ul><ul><ul><ul><ul><li>Why do you need funding? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What is the stage of your company ? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What are your seeking for? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Where is your market potential? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Equity? </li></ul></ul></ul></ul><ul><ul><li>Knowing what’s available </li></ul></ul><ul><ul><ul><li>Funds , loans and grants </li></ul></ul></ul><ul><ul><ul><li>Fund provider background & appetite </li></ul></ul></ul><ul><ul><ul><li>What do investors want? </li></ul></ul></ul>
    10. 15. <ul><li>Venture Capital </li></ul><ul><li>Active participation </li></ul><ul><li>Experience in working with Tech companies </li></ul><ul><li>Network and global linkages </li></ul><ul><li>Areas of interests : </li></ul><ul><li>Software and IT, Internet, Wireless & Mobility, High Growth Technology, Electronics, Green Tech </li></ul><ul><li>Start-up to Pre-IPO stages </li></ul>Chok Kwee Bee : Managing Director CK Chong: Senior Vice President Eliza Noordin : Vice President