Angel Investor View on ASEAN Common Fund for Startup


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Profiled at ASEAN Workshop on SME Business and Technology Incubator', hosted by ASEAN Secretariat along with Indonesia Ministry of Cooperatives and SME in June 2013.

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  • We could list downCommon fund/co-investment for tech startup either formed by private venture or government initiative Common fund/co-investment for non-tech startup either formed by private venture or government initiative
  • Angel Investor View on ASEAN Common Fund for Startup

    1. 1. Goutama Bachtiar Investment Advisor, Global Innovations and Technology Platform ASEAN-JIF, 14 June 2013 Angel Investor’s View on ASEAN Common Fund for Startup
    2. 2. About Us • A Singapore-based Corporate Angel Investor invests in Startup & Seed companies in China, India, Singapore, Indonesia, Vietnam and other Asian countries • Part of Rutledge Vine Capital focusing on global investments
    3. 3. Our Team • Driven by a high caliber force with a combined experience of over 80 years in Senior Management positions • Have extensive ventures in diverse sectors spanned across IT, Mobile, Gaming, Digital Media, Hospitality, Real Estate, Consumer Marketing, Oil & Gas, Commodities spaces
    4. 4. What We Do • Invested in technology companies in various stages of development • Look for more startup by working with entrepreneurs who have innovative ideas and a need for capital to move to the next stage • Our initial funding between US$100K and US$300K • Follow-on funding of US$500K and above at the later stages
    5. 5. Our Investment Philosophy • ‘High Risk-High Return’ portfolio • Partnerships with other Angels and Incubators for co-investment and cross- pollination of ideas • A minority ownership (10 to 25 percent) within the investee • Advice, Mentorship and Network • No interference in day-to-day investee’s management activities
    6. 6. Our Investment Sectors Information Technology
    7. 7. Our Investment Sectors (cont’d) Medical Technology
    8. 8. Our Investment Sectors (cont’d) Eco-Energy
    9. 9. Our Investment Criteria • Differentiation: unique, first-of-a-kind and new ideas, proven and verifiable • Substance: Team, Competitive Advantage, Monetization, Intellectual Property • Market: large target market, first mover (Blue Ocean) • Traction: Working Product, Sales and Customers, Strategic Partners, Letter-of-Intent • Valuation: Rational, Realistic, Reasonable
    10. 10. Our Funding Stages
    11. 11. Our Portfolios
    12. 12. Our Funding Process
    13. 13. Our Co-Investment Process
    14. 14. Rehearsing Common Fund Term • A form of collective investment scheme • Based on contractual law • Managed as a single portfolio with individual beneficiaries receiving returns proportionately • Property is managed as a whole by or on behalf of the operator of the scheme • Contributions, profits, payments, income are to be made to them are pooled
    15. 15. Latest News Common Fund Scene for Startup Injected by New York State Common Retirement Fund (NYSCRF) Third largest pension fund in the country funded two startups Movable Ink and Truveris through Tribeca Venture Partners Moveable Ink: Let users serve up dynamic live content in their email Truveris: a software company helping customer with pharmacy costs
    16. 16. Common Fund Advantages • Co-incubation and Co- Investment • Mentors and Experts • Best Practice Model • Information and Database • Training for investment manager, start-up companies • Reduction in investment risk by diversification
    17. 17. Common Fund Advantages (cont’d) • Economies of scale and operational efficiencies • Resulted in a lower cost base for the investment manager • Tax efficient • Administratively simple • Strengthening country/entities coordination • Reduction in investment risk by diversification
    18. 18. Common Fund Advantages (cont’d) • The more diversified our capital, the lower capital risk • Indirectly reduced currency risk • Systematic risk avoidance by investment in different non- perfectly-correlated asset • Reduced dealing costs
    19. 19. Common Fund Advantages (cont’d) • Simplified fund structure rather than having a number of fund structures • Enhance accountability to entities involves through a greater transparency with more disclosure of information • Accelerate trust and credentials attainment • Gain more publications Attract more investees
    20. 20. Financial Services Would Like to Know • The legal status of the entity • The place in which the firm and/or its head office is located • The ownership of the firm and/or any relevant group structure • The firm's resources • Whether the firm is fit and proper (i.e. meets criteria as to honesty, competency and financial soundness)
    21. 21. Things to Consider • Costs Fund manager cost and expense in fixed or variable percentage • Lack of choice Investor will often have none of the rights connected with individual investments within the fund • Lack of owner’s right Investor could choose type of fund to invest in, but no control over the choice of individual holdings that make up the fund
    22. 22. Common Fund Challenges • Keeping it lean • Communication should be strengthening • Agreed method and common view of risk management, due diligence, valuation, capital injection • Dispute whenever happened and accommodated in the agreement
    23. 23. Common Fund Challenges (cont’d) • Regulatory compliance to minimized compliance risk (law and scheme) including ownership • Complying with Financial Services Authority • Compromising within any other interests
    24. 24. Thank You!