09 CeoMeeting- Session 5- Biotech Corp

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Session 5: Financing of Biotech Companies

Mr David Fong, iSpring Capital

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09 CeoMeeting- Session 5- Biotech Corp

  1. 1. Financing of Biotech Companies CEO Life Science Conference Sheraton Imperial Kuala Lumpur 6-7 Oct 2009
  2. 2. Into the 21 st Century <ul><li>ICT and Biotech – twin pillars of strategy to transform Malaysia into knowledge based economy </li></ul><ul><li>1999 – launch of Multi-Media Super Corridor (MSC). MSC status companies to be drivers of ICT initiative </li></ul><ul><li>2005 – launch of National Biotech Policy and establishment of Biotech Corporation as primary Government agency for Biotech industry. Bio nexus companies to be drivers of Biotech initiative; </li></ul><ul><li>Malaysia’s tech industry at infancy stage </li></ul>
  3. 3. Tech + VC works! <ul><li>VC plays critical role in knowledge economy - funding innovation and future economic growth. Tech + VC proven formula (Silicon Valley) </li></ul><ul><li>Statistically, VC backed companies: </li></ul><ul><ul><li>Are more productive </li></ul></ul><ul><ul><li>Create more jobs </li></ul></ul><ul><ul><li>Have better chance of success </li></ul></ul><ul><ul><li>Creates wealth for entrepreneurs and investors </li></ul></ul>
  4. 4. VC allocation reflects importance to future economic growth Source: BNM Annual Reports <ul><li>Since 1999, actively promoted the development of the VC industry in Malaysia via: </li></ul><ul><ul><li>Allocation of funds; </li></ul></ul><ul><ul><li>Creation of VC players; </li></ul></ul><ul><ul><li>Provided various tax and other incentives to venture capital and entrepreneurs </li></ul></ul><ul><li>>RM3b allocated to VC and entrepreneurs </li></ul><ul><li>Today about 15-20 active VCs </li></ul>
  5. 5. 10 years later…. As at 31 Dec 2008 As at 31 Dec 2007 VC funds (RM million) 4,570 3,308 No of registered VCCs 56 52 No of registered VCMCs 52 46 Investee companies 450 433 No of VC Professionals 248 132
  6. 6. * 18% into Life Sciences ** 55 (41%) at Seed to Early Stage As at 31 Dec 2008 As at 31 Dec 2007 VC funds (RM million) 4,570 3,308 Total investment (RM million) 1,929 1,784 During Investment made (RM million) 477* 479 No of companies 134** 121
  7. 7. Technology in Asia <ul><li>Relatively new phenomena in Asia (with exception of Taiwan and Japan); </li></ul><ul><li>10 years history vs > 50 years in Silicon Valley; </li></ul><ul><li>Number of tech start-up growing but still relatively small; </li></ul><ul><li>Technopreneurs still struggling to understand the culture of start-ups, including funding </li></ul>
  8. 8. Challenges facing the Asian Technopreneur/VCs <ul><li>Lack of start-up/business experience; </li></ul><ul><li>Generally weak “me too” ideas; </li></ul><ul><li>Poor infrastructure support; </li></ul><ul><li>Mindset/entrepreneurial drive; </li></ul><ul><li>(as a result) Inability to raise funding; </li></ul><ul><li>Lack of people (incl VCs) with relevant experience and expertise to mentor/add value/understand technology/start-ups; </li></ul>
  9. 9. Source: BNM Annual Reports Thank You [email_address]

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