Why cities invest in ICT & the EUROCITIES open data guidebook - George Niland @ EUIC2014
How We Invest: Funding Opportunities for ICT and High Growth Companies
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Transcript of How We Invest: Funding Opportunities for ICT and High Growth Companies
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How We Invest: Funding Opportunities for ICT and High Growth Companies
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• Early-stage, high growth, innovative
• High risk – high return nature
• Enhance bankability
• Promote entrepreneurship
• Economic growth catalyst
VENTURE CAPITAL
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Mar
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FUNDING
AMOUNT C
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3-6 months
12-24 months24-60 months
VC FUNDING CYCLE
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• Thorough due diligence
• Milestone-driven disbursements
• Enhance synergy and avoid conflict
• Active participation – as shareholder and director
• Club deals/ co-investments
• Exit timeline
FEATURES OF VC INVESTMENTS
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• Founded in 2001• Largest Malaysian Government VC arm focusing on
ICT/high growth tech sectors (ex biotech)• Early to late stage investor• Fund under management: RM970 million • Typical investment size: up to RM 22 million• Largest number of VC professionals• 128 portfolio companies (73 (direct) & 55 (OSP))• OSP1 – Disbursement of RM100 million in 2001• OSP2 - Disbursement of RM200 million in 2006
MAVCAP
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STRATEGIC GOVERNMENT MANDATE
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STRATEGIC / VALUE ADDING PARTNERSTRATEGIC / VALUE ADDING PARTNER
• Promote corporate governance• Share network and portfolio linkage • Operating experience• Business & commercialisation strategies• Fundraising strategy• Build management team
INVESTMENT APPROACH
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• High growth private companies• ICT, green energy and technology related• Malaysian angle • Minority stake with board seat• Investment horizon – 3 to 5 years• Exit option - buyback, IPO, trade sale
INVESTMENT MANDATE
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INVESTMENT SECTORS
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ASSESSMENT CRITERIA
Financial/Valuation
Product / Service
Holistic Approach
Market
TechnologyBusiness
Model
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INVESTMENT PROCESS
Valuation
Product / Service
Market
TechnologyBusiness
Model
Deal Recommendatio
n & ApprovalDeal Sourcing
Deal Evaluation & DD
Legal Documentation
& Fund Disbursement
Portfolio Monitoring
Exit
3 to 6 months depends on complexity and availability of complete information
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SAMPLE OF PORTFOLIO COMPANIES
MALAYSIAN BRANDS GOING GLOBAL
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OUTSOURCED PARTNER PROGRAM
• Astra Capital Sdn Bhd• DTA Ventures Management Sdn Bhd• Ethos Capital Sdn Bhd• Expedient Equity Sdn Bhd• iSpring Capital Sdn Bhd• Musharakah Tech Ventures• Photonics Venture Capital Sdn Bhd• QMA Capital Sdn Bhd• Teak Capital Sdn Bhd