sasin entrepreneurship july sundowner "how to raise external funding" by aung kyaw moe...
TRANSCRIPT
Aung Kyaw Moe
1
• Grow up in Myanmar, live in Bangkok, travel across SEA
• Left Myanmar in 1998, arrived Thailand in 1999 for new opportunities
• Involved in FinTech Industry for over 15 years
• Founded several FinTech companies
• EMBA (06’) — Sasin, Thailand
• ACE — Massachusetts Institute of Technology, USA
Agenda
2
1. Brief Profile & Motivation
2. Early Years (3Fs)
3. Working with Angels
4. Understanding VC (Incubation & pitches)
5. Swimming with the sharks (Strategic Investors)
6. Recommendations
Early Years (3Fs) — Family
17
1. Describe and Communicate Your Passion
2. Communicate the Plan and Risk up front
Advantages • They have no choice • They will always support your idea Disadvantages • Your idea may not be good • You are risking everything
20
Early Years (3Fs) — Friends &
Fools 1. Offer official agreement together with handshake
2. Focus on well-connected friends with relevant business experience
3. Don’t ask for more than they can afford
Advantages • Fast Funding Process • They will support your idea if things are good Disadvantages • They may walk away and ask their money back when things are not great • Friendship is at risk
21
Doing Well = Equity/Shares Not Doing Well = Loan
Special Supervisor
Early Years (3Fs) — Friends & Fools
Working with Angels
23
1. Business knowledge, business connections and entrepreneur
2. Specialized in specific industry
Advantages • Knows the process • Relatively fast funding Disadvantages • Wants too much equity • Control
24
Working with Angels
2004-2008 2008-Today
1. Help with BOT eMoney License process
2. Recruiting
3. Mentorship and other supports
4. Acquisition
Understanding VC — Incubation
26
1. Understand financial models and projection
2. Presentation skills (Pitching skills)
3. Familiarize with VC acronyms
4. Opportunities to practice investor pitches
5. Positive criticism and continuous improvements
6. Understanding of term sheets
27
Understanding VC — Pitches
1. Practice makes perfect
2. Repetition, Repetition, Repetition, Repetition, Repetition
3. Good pitch may not receive investment — but, it usually gets second meeting
4. Pitching different type of investors makes you sharp and allows you to identify your weaknesses
29
Understanding VC — Type of VC
1. Seed Capital — idea
2. Startup Capital — prototype or product; no customer;
3. Early Stage Capital — team; few customers; try to break even;
4. Expansion Capital — well established; expand new product, market;
5. Late Stage Capital — depends; IPOs; Acquisition; etc.
35
Merger and Acquisitions
1. Eat or be eaten;
2. Strategic investors may become potential acquirer;
3. Management buyout options;
4. Information rights;
5. Additional investment obligations;
6. Commercial obligations;
Startup CEO???
40
Failure (85%)
Nobody
likes you Always
worried Constant
betrayal
Always
behind Sell, Sell, Sell