1.

2.

Family and friends

• Funding to grow business sufficiently to outsiders

• First step towards exposing business to investors

Angel

• Give money without expecting much returns

• May invest in idea/ plan, but for smaller amount of money

• Some are professional angels assist in developing business and access to further funding

Venture capital

• The real thing

3.

• Equity investor (Cash for Shares)

• Early-stage, high-potential, growth companiesin the interest ofgenerating a returnthrough an eventual realization event such as an IPO or trade sale of the company

• Compliment bank lending/facilities to finance innovative (high-risk) SMEs at various stages of life cycle (seed to expansion/late)

• Provide alternative source of financing especially for early stage SMEs in ICT sector, biotech, ..

• Enhance bankability of SMEs,entrepreneurship, corporate governance, marketing, product development and technology enhancement.

4.

New companies with limited operating history

Too small to raise capital in the public markets

Too immature to secure a bank loan or complete a debt offering.

In exchange for thehigh riskthat venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value).

5. Market Expansion Product Expansion Listing or Sale Commercialization TIME ConceptAlpha BetaEarly Adopter Seed Early Expansion Late FUNDING (RM)