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  • 2000-05-27 下一位網路新貴，就是你！如何吸引創投公司挹注 成功打造一個網路企業

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    IPO2 創曄股份有限公司 / 願境網訊股份有限公司

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    IPO2 創曄股份有限公司 / 願境網訊股份有限公司

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    287 views28 pages

    2000-05-27 下一位網路新貴，就是你！如何吸引創投公司挹注 成功打造一個網路企業

    Uploaded by

    Jerry Lee
    IPO2 創曄股份有限公司 / 願境網訊股份有限公司

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 28

    下一位網路新貴，就是你！

    如何吸引創投公司挹注
    成功打造一個網路企業
    願 境 網 訊 股 份 有 限 公 司

    許安德 Mark A. Hsu


    Mark@eimg.com.tw
    願境網訊‧執行長
    2000/05/27
    願 境 網 訊 Envision Internet Media Group
    Outline

    By the end of this presentation, you will know：

    • Where to find investors for your venture

    • The trade-offs between various funding sources

    • Characteristics of ideas/teams that would attract funding

    願 境 網 訊 Envision Internet Media Group


    Raising your first investment

     Where do I even begin?

     Who should I approach?

     How do I get their attention?

     How do I prepare a winning business plan?

    願 境 網 訊 Envision Internet Media Group


    Sources of Private Funding
    for Your Venture

     Family and Friends

     Business Angels

     Venture Capital Companies

     Corporations

    願 境 網 訊 Envision Internet Media Group


    Ideal Sources Depend
    on Stage of Start-Up

    願 境 網 訊 Envision Internet Media Group


    Business Angels: Who Are They?

    Usually successful entrepreneurs/ professionals


     High net worth individual
     Network of contacts in business sector
     Will fund anywhere from US$50K to $1M

    Difficulty is identifying and approaching them


     Many angels prefer confidentiality
     Networking plays important part
     They are incredibly busy

    願 境 網 訊 Envision Internet Media Group


    Venture Capital Firms
    Encompass Wide Spectrum

    願 境 網 訊 Envision Internet Media Group


    Key Considerations
    When Sourcing for VC Funding

     Find out minimum funding size


    • Some only look for deals above US$3-5 million

     Find out areas of focus

     Research previous investments


    • Good indication of typical investments

    願 境 網 訊 Envision Internet Media Group


    Corporates are Also
    in The Market

     Some corporations have established separate “incubator/ venture”


    funds
     Some see it as logical support/ extension of core business
    • Intel invests in companies that drives chips demand
     Beware of corporations that are jumping on Internet bandwagon
    • ”stock price booster”
     Beware of being locked in (cannot deal with investor’s
    competitors)
    • Some corporations ideal as strategic investors (pre-IPO)

    願 境 網 訊 Envision Internet Media Group


    Raising the First Million Bucks

     Where do I even begin?

     Who should I approach?

     How do I get their attention?

     How do I value my venture?

    願 境 網 訊 Envision Internet Media Group


    Issues to Consider
    with Funding Sources (1)

    Family and Friends Business Angels


    ⊕ ⊕
    • Suitable for small • Suitable for seed
    seed funding funding
    • No questions asked • Substantial amounts
    can be raised
    ⊙ ⊙
    • Complex to manage • Angels difficult to
    if many identify/access
    • Personal relationships
    at risk

    願 境 網 訊 Envision Internet Media Group


    Issues to Consider
    with Funding Sources (2)

    Venture Capital Firms Corporations


    ⊕ ⊕
    • Suitable for seed • Suitable for early stage and
    early stage and pre- pre-IPO
    IPO financing • Synergies can be exploited
    • Good network and • Strategic investors can bring
    business connections credibility
    ⊙ ⊙
    • Not easy to persuade • Potentially different agendas
    • Must present rigorous • Locked out from partnerships
    business case with corporation’s competitors

    願 境 網 訊 Envision Internet Media Group


    Some Priority Considerations

    Raise smart, not dumb, money


    ‧Choose investors who will add value to your venture
    • extensive network (customers, partners, strategic alliances,
    other investors)
    • contribution to management direction
    • whose vote of confidence opens more doors
    • Choose investors who know the difficulty of the start-up road

    Think about timing


    • Not necessary to go to VC straightway
    • Explore business angels, relevant corporations, incubator schemes

    願 境 網 訊 Envision Internet Media Group


    Raising the First Million Bucks

     Where do I even begin?

     Who should I approach?

     How Do I Get Their Attention?

     How do I value my venture?

    願 境 網 訊 Envision Internet Media Group


    How Do You Get VC Attention

    Strong management team


    • The main criterion
    • Persuading investors to invest money is easier than
    persuading quality people to invest careers

    For Internet ventures, Big is Beautiful


    • In Asia, unless Korea, China, India, Japan, need a scaleable
    pan-Asian concept
    • High revenue potential
    • For B to C, potential user base in seven digits
    • New “market spaces”

    願 境 網 訊 Envision Internet Media Group


    Writing the
    Winning Business Plan…

     Captures the imagination of the investor on the


    first page
    • The executive summary must inspire!

     Boast a strong resume section

     Has credible “middle bits”

    願 境 網 訊 Envision Internet Media Group


    Key Elements of
    a Great Business Plan (1)

     What’s the concept/ product?


     What’s the customer value proposition?
     What’s the market opportunity?
     Who are your competitors and how you beat/sidestep
    them
     What are the risks?
     Is it worth it?

    願 境 網 訊 Envision Internet Media Group


    Key Elements of
    a Great Business Plan (2)

    What are your functional plans?


    • Marketing (4Ps)
    • Product Development
    • Sales
    • Strategic alliances/ business development
    • Human resource
    Financial plan
    • Proforma cash-flow budget (3 years)
    • Net present value/ IRR
    • Cash flow positive in x months (but not for Amazon.com business)
    • Payback in y months

    願 境 網 訊 Envision Internet Media Group


    Raising the First Million Bucks

     Where do I even begin?

     Who should I approach?

     How do I get their attention?

     How do I value my venture?

    願 境 網 訊 Envision Internet Media Group


    How to Value
    Start-up Internet Companies

     Already difficult to answer for established


    Internet companies

     Even more difficult to answer for start-ups

     At exit time, what is NPV and IRR of investors?

    願 境 網 訊 Envision Internet Media Group


    What is Return
    on Investment at Exit Point?

    Traditional Valuation Internet Valuation

    > 100% p.a.

    > 50% p.a.

    Exit Exit

    願 境 網 訊 Envision Internet Media Group


    So How Do I Value My Venture

    Use comparables of companies in same in same market space


    • Revenue multiples
    • Market value per user
    • Market value per customer

    Then apply to your situation

    Do a reality check
    • Lifetime value of user
    • Lifetime value of customer

    Or, how much you can get away with

    願 境 網 訊 Envision Internet Media Group


    Some Rules of Thumb

     Ask for funds 2 times more than you actually need

     At a valuation 2 times more than you actually think


    the business is worth

     And then you’ll probably end up where you wanted to


    be at the first place

    願 境 網 訊 Envision Internet Media Group


    So How Do I Secure
    An Appointment

     Through your business angel


     Network, network, network
     If at all possible, never send a business plan without
    securing a presentation meeting
    • prepare a short, concise, hard-hitting presentation
    • A Power point version of your business plan’s executive
    summary
     Prepare, prepare, prepare for the tough questions

    願 境 網 訊 Envision Internet Media Group


    Raising Money：Not too easy,
    but not too hard either

     Identify appropriate funding sources given stage of


    your venture
     Get help to attract good management team
     Excite potential investors – think big!
     Write a good business plan
     Give the presentation of your life!

    願 境 網 訊 Envision Internet Media Group


    Thank You

    願境網訊股份有限公司
    Envision Internet Media Group

    http://www.eimg.com.tw
    http://www.kkman.com.tw
    bbs.kkcity.com.tw

    願 境 網 訊 Envision Internet Media Group


    Livin la vida loca

    願 境 網 訊 Envision Internet Media Group


    Taiwan’s Online Ad Market

    On-line market share Taiwan

    1% (a) 53
    2% 107
    3% 160
    4% 213
    5% (b) 266
    6% 320
    7% 373
    8% 426
    9% 480
    10% 533
    願 境 網 訊 Envision Internet Media Group

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