how we invest: funding opportunities for ict and high growth companies
DESCRIPTION
Bangsar South City Knowledge Clinics - Venture Capital Financing by MAVCAP on 26 May 2011TRANSCRIPT
How We Invest: Funding Opportunities for ICT and High Growth Companies
• Early-stage, high growth, innovative
• High risk – high return nature
• Enhance bankability
• Promote entrepreneurship
• Economic growth catalyst
VENTURE CAPITAL
Mar
ket
Exp
ansi
on
Pro
duct
Exp
an
sio
n
List
ing
or
Sa
le
Com
mer
cial
izat
ion TIME
Con
cept
Alp
ha
Bet
a
Ea
rly
Ado
pter
FUNDING
AMOUNT C
o F
orm
atio
n
3-6 months
12-24 months24-60 months
VC FUNDING CYCLE
• 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
• 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
STRATEGIC GOVERNMENT MANDATE
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
• 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
INVESTMENT SECTORS
ASSESSMENT CRITERIA
Financial/Valuation
Product / Service
Holistic Approach
Market
TechnologyBusiness
Model
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
SAMPLE OF PORTFOLIO COMPANIES
MALAYSIAN BRANDS GOING GLOBAL
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
