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Transcript of Global Alliance - Technology Ventures between US and Asia Pacific CIE-SEA Fall Conference, Sept. 23,...
Global Alliance - Technology Ventures between US and Asia Pacific
CIE-SEA Fall Conference, Sept. 23, 2001
Ronald Chwang, Acer Technology Ventures, AmericaChairman & President
Elements leads to Venture Success
• IdeaBetter faster cheaper; Brave new world
• TalentVision, execution, experience
• MarketCustomer demand, value proposition
• CapitalSelf-generated profit; external investment
• Bond by a common interest - return for all stack holders
Cross Pacific Venture Model - North America focused
Market
Stockexchange
North AmericaAsia Pacific
Idea
Talent
Investment
Talent
Investment
Cross Pacific Venture Model - Asia Pacific focused
Market
North AmericaAsia Pacific
Stockexchange
Market
Idea
Talent
Investment
Talent
Successful Examples
• Semiconductor Industry (Taiwan /US)Wafer FoundryAssembly & testingFabless Chip Design Companies
• Software Industry (India /US)Programming outsourcingIT consulting and servicesApplication development & remote support
Recent factors driving new venture models• Internet & Communication
InfrastructureEnable better global product & business collaboration
• Growing number of Asian EntrepreneursIdeas and talent
• Opening of China domestic marketPotential for self-sustaining growth
• Availability of Asian based venture capitalMore knowledgeable on Cross-Pacific investment
Cross Pacific Venture Model - New evolving model
Idea
Market
Stockexchange
North AmericaAsia Pacific
Stockexchange
Talent
Investment
Idea
Talent
Investment
Market
Acer Technology Ventures
• Acer Group venture investment arm since 1997
• Structured as an independent professional venture fund management company
• Funds under management: - ATVF - $40 million (100% Acer) - IP Fund One (May, 2000) - $260 million
(40% Acer/60% institutions)
• Active value-added investment style
TaipeiTaipei
Shanghai Shanghai
Singapore Singapore
• Greater China, India, & Singapore• Leading edge manufacturing• System integration• Service & channel infrastructure• Expansion stage
Asia Pacific Focus
Silicon ValleySilicon Valley
• US & Canada• Technology innovation• Hardware, Software IP& product• Leading edge Service infrastructure• Early stage
North America Focus
Cross Pacific Value add
Acer Technology Ventures
The Greater China Opportunity• It is not an over-night sudden
phenomenon• Well orchestrated, staged, progressive
and effective opening up• Challenges and uncertainty abound• Three driving factors :
– Availability of human resources– Potential of huge domestic market– Embracing the Global community : WTO,
Olympics 2008
The Year 2000, a Watershed Year• China replaces Taiwan as the world’s
third largest hi-tech hardware supplier.
• Taiwan players contribute more than half of China outputs
• Taiwan hi-tech manufacturers intensified the offshore movement. The first time over 50% was made overseas.
• Over 30% of Taiwan companies’ manufacturing is based in Mainland.
China-bound Investment from Taiwan• The PULL
Huge potential local market Abundant resources (labor, land, engineer,….) WTO and China’s opening up Follow the supply-chain foot-step
• The PUSH
Taiwan’s uncertain macro-economy outlook Cost and efficiency of the business environment MNC customers’ urge to move forward Potential exit for excessive funds
Venture investment in Taiwan• High-tech and global business focus• Successful venture investment
practice• Well accepted entrepreneur
incentive system• Matured corporate governance and
SEC regulatory control• High Liquidity stock market
China Challenges: Entrepreneur maturity
• Vision does not equal to Execution• Separation of management and
ownership• Corporate governance and
transparency• Building solid business vs. making
deals• Technology focus vs. Customer focus
China Challenges: Market and business risks• Government policy can influence
economic decision• WTO accession - not an overnight
panacea to China problems• Fragmented markets• People Centric / Guanxi• Respect and protection of IP
China Challenges: Return on Investment• Legal, judicial and commercial
support infrastructure• Professional private venture
practices• Regulatory constrains and
interpretation variance• Sound and clear investment exit
path for foreign investments
Venture opportunities in Greater China
• Wireless technology and applications• Photonic industry• Seamless heterogeneous
telecommunication infrastructure solution
• Software OEM/outsourcing and remote support
• Biotech and healthcare
摸着石头过河Feeling the stone while crossing the river
Focus, determination, and perseverance!
Together, we shall steer through the rough sea!