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From Start Up to Scale Up: Financing F or Sustainable Growth p resented by Soo Boon KOH Managing Partner 31 st October 2013. Sources of Funding For Entrepreneurs. Capital. Early Stage Investors. Seed Investors. Growth Stage Investors. Late Stage Investors. Growth/late stage VCs
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From Start Up to Scale Up: Financing For Sustainable Growth presented by SooBoon KOH Managing Partner 31stOctober 2013
Sources of Funding For Entrepreneurs Capital Early Stage Investors Seed Investors Growth Stage Investors Late Stage Investors Growth/late stage VCs Strategic investors IPO Super Angels VCs SPRING SEEDS Partnership Bootstrap F&F Angels Incubators Govt. Grants IPO / M&A R&D Commercial Pilot Growth Expansion Time Source: Ministry of Knowledge Economy, Republic of Korea & iGlobe Partners
Challenges Facing Local Enterprises $1M? Technology? Product? $50M? Revenue? $100,000? Market? Positioning? Funding? Solves Customer Problems? Right Team? Business Model? How to compete? Distribution? http://www.flickr.com/photos/peasap/5356561552/
Required VC Competencies differ at each stage Source: iGlobe Partners Pte Ltd
Challenges Facing Global Enterprises $1B? $500M? Localization Which Technology? What Product? Expansion $100M? Funding? Revenue? Which Market? Positioning? Large Markets – US, Europe, China, India Cross-Cultural, Additional Management Functions Serve Customers from Different Cultures Solves Customer Problems? Right Team? What Business Model? Scalable How to compete? Globally Channels, JV, Subsidiaries? Logistics/Support Services: Centralized vs Decentralized Distribution? http://www.flickr.com/photos/peasap/5356561552/
Geographical Focus –Global Scalability through Syndication Strategy 2 International scale-out of Asian companies Strategy 3 Bringing companies to Asia Strategy 1 International scale-out of Singapore Based companies • High growth strategy, global growth potential • Value added investor with globalization skill set • iGlobe pushes beyond local borders • Syndication: domestic expertise & complementary skill sets • Leverage Singapore when relevant
Identifying Trends & Market Leaders • Track potential M&A targets • Growth through acquisition • Commercial partnerships with portfolio companies • Technology Scanning • Market Trends • Co-investment Opportunities • Industry Mapping • Active Deal Sourcing • High quality dealflow • Lead/Co-Lead Investor • Thorough due diligence • Risk Management • Deal structure • Strategic Planning • Strong operational background • Coach founders /management • Successful exits over multiple business cycles • Strategic planning for exit at investment with management
Asian Expansion Strategy, Syndicated with China based West Summit Capital Introduction to SE Asia customers, partners and educational institutions Hired Director of Sales, South East Asia and Hong Kong Set up corporate HQ in Singapore on preferential tax scheme Lead syndication and restructured company post 9/11 from near bankruptcy, Assist in set-up of China software dev. center in 2002 (now >1,000 staff) with recruitment of first batch of engineers Recruited CFO ,Audit Chairman and guided 2010 NASDAQ IPO Developed and implemented Asian growth strategy, obtained incentives for R&D Asia Development Centre Hired VP Sales (Asia) and incubated Asian operation Worked closely with VP Sales (Asia) to grow Asia revenue from 7% in 2005 to 35% in 2007 during IPO (Swiss Stock Exchange) to 40% in 2012 iGlobe’s Value Add Platform: Beyond Board Rep.
Help define Asian Expansion Strategy &Transition to direct sales from 100% indirect Secure NEA contract win of S$4.7M Building capability in management team & bought in iGlobe hardware manufacturing partner for device production launch Business Model transition: outsource to co-production to IP exploitation Build strategic relationships with international media partners & guide in intl. contract negotiations & SPV implementation Recruited experienced regional Licensing and Merchandising team Recruiting VP, Business Development Established Offshore production centre in Kuala Lumpur iGlobe’s Value Add Platform: Beyond Board Rep.
iGlobe seeded spin-out from Cadence/Celestry Led financing rounds withIDG, WI Harper/ Springboard, Harbinger, Intel Capital, CID Ventures, Austin Ventures, Sierra Ventures, IBM Capital, Tenaya Capital & West Summit Capital Facilitated partnership with Chartered Semiconductor, UTAC, Intel and IBM Recruited VP Sales (Taiwan) & CFO Recruited Product Manager & CFO Strong Asia based business revenue from over 100 mobile operators Management guidance (repeat entrepreneur for iGlobe) Acquired by a US based PE Fund manager iGlobe’s Value Add Platform: Beyond Board Seat • iGlobe operating partner joined as CFO and implemented M&A exit within 8 months of investment
Contact Details Soo Boon KOH Managing Partner sooboonkoh@iglobepartners.com ~ iGlobe Partners Pte Ltd 11 Biopolis Way Helios #09-03 Singapore 138667 +65 6478 9716 www.iglobepartners.com