By

Dr. Wilton Chau

Managing Partner QLeap Venture Fund

Adjunct Professor, CUHK

Professor Wilton Chau 1CUHK

Over 24 years experience in venture capital and direct investment industryManaging Partner in QLeap Venture Fund Investment committee member of SHC

Capital (insurance company listed in Singapore)

Director of Guangzhen Rail Co. Ltd., listed in New York, Shanghai and Hong Kong

Director of several unlisted companies invested by QLeap Venture Fund

Lead Consultant – Incubation Program, HK Sci Park

Adjunct Professor & Pro-doc Fellow of the Centre of Entrepreneurship, CUHK

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Buy side: 24 years Sell side: 10 years Successful fund raising: 5 cases (pre-revenue) 1 project per 2 years amount: HK$ 1 – 40 million

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SeedOwn savingsFamily, friends and foolsGovernment

Application ResearchResearch institution (universities, ASTRI)Own savingsGovernment (SERAP, HKSTP)Angels

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Start-upOwn moneyGovernmentAngels

Early stageAngelsVCs Industrial partners

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1. A valid business model 2. An executable business

plan3. Investment proposals 4. Powerful presentations5. Q&A6. DD files7. ???

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A feasible one?

A scalable one?

Require change in infrastructure?

A high growth one?

A proven model?How to prove the model at the beginning?

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Vision vs ImaginationBig enough?Clear?Direction?

Identified risks & hurdlesCome with solutions?Limited resources, limited time

out-sourcing

Betrayal - financial projections

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A marketing document (20 pages) Tailor-made to each investor (the buyer) Must have an OFFER

How much are you raising?What is the stake being offered?Other terms (a term sheet)

Exit strategy Functions of time-line Differences between IM / BP / IP An outstanding one!

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In line with the investment proposal

10 – 20 minutes ppt Flow along the theme(s) Prototype Skills

Serial position effect Storytelling

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Very important to inexperience team Not related to Gaps setting First page: list of questions in groups Completed answers to all expected

questionsas detail as possible, no restriction on lengthdon’t refer to other materials unless

necessary except to particular documents in DD files for proof

Can be part of the Investment Proposal Problem: only experienced people can

tell Gap setting

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Organized in the following sections:Legal (including patents & technology)Financials

Assumptions & their justifications Past financial statements (audited*)

ContractsMilestones and achievements

Numbers the key documents

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In terms of a successful fund raising Items 1 to 6 contribute one third

Item 7 contributes another one third

--- Thank you! ---

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