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

Published in: Economy & Finance
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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
  2. 3. STAGES OF A COMPANY
  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

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