msc malaysia innotech johor - raising funds in today's economy

15
Raising funds In today’s Economy Powering your start-up Presented by Bob Chua – CEO Pulse Group PLC (Ticker: PGRP)

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Page 1: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

Raising funds In today’sEconomy

Powering your start-up

Presented by

Bob Chua – CEO

Pulse Group PLC (Ticker: PGRP)

Page 2: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

“Money Makes Money”

Page 3: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Powering growth

Sources of funding

SolidBusiness Idea

StrongManagement

Fund’sto

Grow

IP Protection

Starting-up

Page 4: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Stages of funding

Sources of funding

$

Year’sPre-Seed$25K-$50K

Seed$150K-$500K

Series-A$1m-$10m

Series-B$5m-$15m

Mezzanine/Pre-IPO$10m-$20m

IPO$40m-$500m

Second round$Xm

Page 5: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Sources of funds

– Pre-seed (3F’s Family, friends and fool’s)

– Seed (Grant’s, Seed-fund’s, Angel’s)

– Series-A, B, C, D (VC’s)

– Mezzanine/Pre-IPO – PE’s, Private Investors, or Institutions

– IPO – Financial Institutions and Public

– Secondary round’s – PE’s, Hedge Funds, Public etc.

Sources of funding

Page 6: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

“Nothing is FREE in this World”

Page 7: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Selecting Investors– What they’re looking for from you

Sources of funding

Track Record

ProfitabilityRevenue

Solid Product’s/ServicesIP Protection

Clean StructureClean Accounts

Strong ManagementClear Exit Strategy

Scalability

Clients Brand

Clear Vision

Board Seat

BrandEnergizers

Financial Modeling

Page 8: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Selecting Investors– What you should be looking for from them

Sources of funding

Value-Add

SynergisticInvestee’sSynergistic Team

Domain Expertise

Strong Board Member/s

Track-recordGood and Fair

Valuation

Good reputationDeep-pockets

Page 9: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

“What now?”

Page 10: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

• Responsibility

– Spend Proceeds Wisely

– Invest for the future

– Be conscious of the investment tenure, terms, and exit strategy

– Deliver on your promises

Post funding

Page 11: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

The Economy Today

Page 12: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

The realities of 2009 and beyond

1. 2009 is going to be a tough year

2. Investors are sitting on piles of cash, there IS money out there

3. Exit Strategies are unclear

4. Valuation’s will be brutal

5. Shareholder value will be critical

6. Cost of capital will be high

7. There will be as many opportunities as there are challenges

8. Survival of the fittest

Page 13: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

Closing Thoughts

1. Put your money where your mouth is

2. It’s about the fast eating the slow, not the large eating the small

3. Tread carefully with external funding, but raise funds nonetheless

4. Timing is everything

5. Scale your business quickly

6. Create and illustrate profits

7. Continue to aim for the next big thing

8. Deliver shareholder value

Page 14: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

“ A Pessimist finds problems in an opportunity. An Optimist finds

Opportunity in a problem”

– Winston Churchill

Words of Wisdom

Page 15: MSC Malaysia InnoTech Johor - Raising Funds In today's Economy

Thank You [email protected]