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  • Enterprise @ Jurong East is managed by the Singapore Confederation of Industries Tel 1800-568 7000 or (65) 6560 0056 iiAxil, the venture accelerator arm of Ascendas Tel (65) 6774-4048 NTU – Tel (65) 6790-4686 [email_address] NUS - www.nus.edu.sg/nvs/incubator.html Tel (65) 6874-5466 [email_address] Phase Z.Ro Technoprenuer Park a development under JTC group’s one north development www.phasez.ro Tel: Tel (65) 6560-0056 [email_address] SOHO @ Central developed by Far East Organisation www.thecentral.com.sg Tel: (65) 6535-5803 Ayer Rajah – JTC’s Technoprenuer center Tel (65) 6560-0056 [email_address] Bukit Merah – JTC’s Technoprenuer center Tel (65) 6560-0056 askjtc@jtc.gov.sg Chai Chee - Capital Land Commercial and Integrated Land Development Tel (65) 65361188 [email_address] Suntec City Tel 6560-0056 [email_address]
  • DEALS https://venus.edb.gov.sg/deals/process/OnlineDirView
  • SEED Focus Wide spectrum of industries IT Biotechnology Electronics and e-commerce Media & communications Nanotechnology SEEDS Qualifiers Substantial innovative or intellectual content; High growth potential; and Scalability for the international market NOT Included Real estate development; Gambling; Tobacco-related products; Other activities which are in violation of law, or against public interest
  • ppt

    1. 1. Web In Travel- An Angel Ate At My Table: An Investment Session Bill Liu Chairman Stream Global Pte Ltd
    2. 2. What Does A Start-Up Company Need? <ul><li>Expansion Capital </li></ul><ul><li>Continue To Innovate </li></ul><ul><li>Marketing & Access To Markets (Overseas) </li></ul><ul><li>IT Systems & Solutions </li></ul><ul><li>Build Management capability </li></ul><ul><li>Attract Talent </li></ul><ul><li>Compete Internationally </li></ul><ul><li>Build Brand </li></ul>
    3. 3. Funding Road - Map <ul><li>Business Plan Competitions </li></ul><ul><li>Incubators </li></ul><ul><li>Angel Investors (also Friends & Family) </li></ul><ul><li>First Stage Funding – Venture Captial, Bank Loans </li></ul><ul><li>Govt. Support </li></ul><ul><ul><li>Equity, Debt, Tax Incentives </li></ul></ul><ul><li>Growth (Late) stage funding </li></ul>
    4. 4. Venture Capital ‘101 ’ <ul><li>Seed Round : Idea Stage – No Prior Capital </li></ul><ul><li>First Round : Series ‘A’ – Feasibility Stage, First Professional Capital & Structure for R&D </li></ul><ul><li>Second Round : Series ‘B’ – Product Development Stage, Collaborations & Customers, Clear Intellectual Property Strategy </li></ul><ul><li>Later Rounds : Series ‘C’ & Beyond – Commercialization/Expansion Stage </li></ul><ul><li>Exit : M&A or IPO </li></ul>
    5. 5. Funding to Milestones “ Old-Fashioned Venture Capital” Capital Risk ( ß) Valuation Idea is Feasible Technology Works A Customer Buys Seed Funding R&D Capital Go-to-Market Capital Expansion Capital P(success) = 10% Req’d IRR = 100% P(success) = 30% Req’d IRR = 70% P(success) = 50% Req’d IRR = 50% P(success) = 80% Req’d IRR = 30%
    6. 6. Venture Capital Investing in 1999
    7. 7. What Does A VC look For In A Company? <ul><li>3 Factors You Often Hear </li></ul><ul><li>- Management, Management, Management </li></ul><ul><li>3 Factors That Are Important: </li></ul><ul><li>- Very Large Market Opportunity </li></ul><ul><li>- Management Team’s Ability To Adapt and </li></ul><ul><li> Scale Up the Business </li></ul><ul><li>- Increasing Barriers to Entry </li></ul><ul><li>Technology is a Necessary But Not a Sufficient Condition! </li></ul><ul><li>Clearly Defined Exit Strategy </li></ul>
    8. 8. Lessons Learnt By Many………. <ul><li>Business involving change of paradigm is very difficult </li></ul><ul><ul><li>Early adoption is slow </li></ul></ul><ul><li>Cross Boarder Business is tough </li></ul><ul><ul><li>Don’t under estimate the regulatory barriers/approvals </li></ul></ul><ul><li>Need stringent mentality </li></ul><ul><ul><li>Go for low frills and low costs set-up until cash flow positive! </li></ul></ul><ul><li>Not to be dependent on only 1 major revenue stream </li></ul><ul><li>Need a plan B, C…… </li></ul><ul><li>Discount heavily any initial forecasts by the company </li></ul>
    11. 12. Neopet Company’s Progress <ul><li>Rate of growth was 1.6 million accounts per month worldwide </li></ul><ul><li>Users are spending an average of 4.5 hours per session on the Neopets site </li></ul><ul><li>Nielsen NetRating has consistently rate them among the top ten most visited site from Singapore with average of 200K unique Singapore users. </li></ul><ul><li>The management team is made up of executives who are experienced in entertainment and market research business </li></ul><ul><li>Unlike other internet Cos, NeoPets management is very conscious of keeping cost low and matching cost to revenue </li></ul><ul><li>Very popular amongst Generation Y of both sexes </li></ul>
    12. 13. So How/What? <ul><li>Is this a great time to be pulling levers and starting new companies? </li></ul><ul><li>Liquidity isn’t predictable, but… </li></ul><ul><ul><li>Choices about business models, geography and industry sectors are critical levers – and controllable </li></ul></ul><ul><ul><li>The food will be back … ! </li></ul></ul><ul><li>… .Have you the passion? </li></ul>
    13. 14. <ul><li>Happy Hunting! </li></ul>Thank You For Your Attention
    14. 15. Incubators– lowering initial costs <ul><li>Provide workspace and shared administrative resources </li></ul><ul><li>Help with fund-raising and marketing </li></ul><ul><li>General mentoring and guidance </li></ul><ul><li>About 100 incubators in Singapore </li></ul><ul><li>Singapore’s Hotspots </li></ul><ul><ul><li>The Enterprise @ Jurong East </li></ul></ul><ul><ul><li>iAxil @ Singapore Science Park </li></ul></ul><ul><ul><li>iHub @ Jurong East </li></ul></ul><ul><ul><li>Nanyang Technological University </li></ul></ul><ul><ul><li>National University of Singapore </li></ul></ul><ul><ul><li>Phase Z.Ro @ one-north </li></ul></ul><ul><ul><li>Soho @ Central </li></ul></ul><ul><ul><li>Technopreneur Center @ Ayer Rajah </li></ul></ul><ul><ul><li>Technopreneur Center @ Bukit Merah </li></ul></ul><ul><ul><li>Technopark @ Chai Chee </li></ul></ul><ul><ul><li>Suntec City </li></ul></ul><ul><ul><li>&quot;HOT&quot; stands for </li></ul></ul><ul><ul><li>&quot;Hub of Technopreneurs” </li></ul></ul>
    15. 16. Private Investors Angel Investors Venture Capital
    16. 17. Where to find them? <ul><li>DEALS </li></ul><ul><ul><li>An online directory to match up investors with startups </li></ul></ul><ul><ul><li>Classified by 14 Industries </li></ul></ul><ul><ul><li>https://venus.edb.gov.sg/deals/process/OnlineDirView </li></ul></ul><ul><li>BANSEA – Business Angels Network of South East Asia </li></ul><ul><ul><li>One time membership Fee $200 </li></ul></ul><ul><ul><li>Membership Benefits </li></ul></ul><ul><ul><ul><li>Information on deal flows & overseas contacts </li></ul></ul></ul><ul><ul><ul><li>Discounts for public events requiring registration fees, and </li></ul></ul></ul><ul><li>ACE - Action Community for Entrepreneurship </li></ul><ul><ul><li>Events like BlueSky </li></ul></ul><ul><li>SVCA – Singapore Venture Capital and Private Equity Association </li></ul>
    17. 18. Government Schemes for Start Ups In Singapore $ for $ Tax exemptions
    18. 19. SPRING <ul><li>Standards, Productivity and Innovation Board, Singapore </li></ul><ul><li>Focus is to champion enterprise formation and growth </li></ul><ul><ul><li>Funding resources </li></ul></ul><ul><ul><li>Network of valued relationships </li></ul></ul><ul><li>Works with partners to </li></ul><ul><ul><li>Help enhance the productivity and innovation and capabilities of enterprises </li></ul></ul><ul><ul><li>Increase access to markets and business opportunities </li></ul></ul>
    19. 20. SEEDS <ul><li>Startup Enterprise Development Scheme </li></ul><ul><li>$ for $ match for funds raised with a third party investor </li></ul><ul><ul><li>Minimum of S$75,000 from third party/parties </li></ul></ul><ul><ul><li>Maximum funding of $300,000 </li></ul></ul><ul><li>An SPRING scheme </li></ul><ul><ul><li>25% SEED Cos Have Foreign Founders </li></ul></ul><ul><ul><li>More than 150 Companies Have SEED Funding </li></ul></ul><ul><ul><li>50% of SEED Enterprises Have Launched Products/Services </li></ul></ul><ul><ul><li>80% of SEED Enterprises Developing Patents/IPR </li></ul></ul>
    20. 21. ICS <ul><li>Innovation Commercialisation Scheme </li></ul><ul><li>Encourage development and commercialisation of innovative ideas </li></ul><ul><li>EDB reimburses up to half of the qualifying costs of supported projects </li></ul><ul><ul><li>Up to a maximum of $75,000 </li></ul></ul>
    21. 22. IDS <ul><li>Innovation Development Scheme </li></ul><ul><li>EDB Grant: provides co-funding to support innovation in products, processes and applications. </li></ul><ul><li>Eligible project costs include expenditure on manpower, equipment, intellectual property and professional services. </li></ul><ul><li>Open to companies registered in Singapore. </li></ul><ul><li>Project must lead to the build-up of innovation capabilities. </li></ul><ul><li>Co-funds costs related to innovation and R&D </li></ul>
    22. 23. Tax Exemption <ul><li>All startup automatically qualify for this. </li></ul><ul><li>Start-ups in operation for less than 3 years can benefit from the tax exemption scheme. </li></ul><ul><li>100% tax exemption on the first S$100,000 of profits for up to 3 years. </li></ul><ul><li>The program's objective is to encourage entrepreneurial efforts by relieving the tax burden of young start-ups. </li></ul>
    23. 24. IE Singapore <ul><li>Double Deduction for Overseas Investment </li></ul><ul><ul><li>Deduction of taxable income (two times foreign investment) </li></ul></ul><ul><li>Malaysia Singapore Third Country Business Development Fund (MSBF) </li></ul><ul><li>Local Enterprise and Association Development Programme (LEAD) </li></ul><ul><ul><li>Supports SMEs developing new industries </li></ul></ul><ul><li>Trade Credit Insurance (TCI) </li></ul><ul><ul><li>Protects against the non-payment risk of buyers </li></ul></ul><ul><li>Pathfinder program </li></ul><ul><ul><li>Help nascent Singapore-based exporters increase overseas sales </li></ul></ul><ul><li>LIS II – Loan Insurance Scheme </li></ul>
    24. 25. Government Schemes for Growth Stage Financing LEFS LETAS LIS GFP RFS
    25. 26. LEFS <ul><li>Local Enterprise Finance Scheme </li></ul><ul><li>Fixed rate financing (6.25%-6.75%) to </li></ul><ul><ul><li>Upgrade, strengthen and expand operations </li></ul></ul><ul><li>SPRING administered loans upto $15M for </li></ul><ul><ul><li>Buying new machinery </li></ul></ul><ul><ul><li>Upgrading existing equipment </li></ul></ul><ul><ul><li>General working capital </li></ul></ul>
    26. 27. GFP <ul><li>Growth Financing Program </li></ul><ul><li>Support early stage Singapore based companies with the potential for global growth. </li></ul><ul><li>The Program </li></ul><ul><ul><li>$2 (3 rd party) to $1 ( EDB ) matching of fund raised </li></ul></ul><ul><ul><li>Maximum $1M </li></ul></ul><ul><ul><li>Third party investor must put >= $500K </li></ul></ul>
    27. 28. RFS <ul><li>Regionalisation Financing Scheme </li></ul><ul><li>Help Singapore companies setup operations overseas </li></ul><ul><li>The Scheme ( IE Singapore ) </li></ul><ul><ul><li>Fixed-cost financing program </li></ul></ul><ul><ul><li>Loan upto $10M for acquiring fixed assets </li></ul></ul><ul><ul><ul><li>Purchase of machinery and equipment </li></ul></ul></ul><ul><ul><ul><li>Construction of Factories or buildings </li></ul></ul></ul>