Venture Capital

1. Venture Capital Ct Farida Mastor 136505 Farhana Ahmad 136125 Noor Zahidah Abdul Khalil 136798 Nurhanisah Abdul Wahab 137317 Mohd Aizat bin Ibrahim 135657 Mohd Huzir bin Yahaya 135667

2. Venture capital • is a type of private capital capital typically provided to immature, high-potential, growth companies in the interest of generating a return through an eventual realization event. • generally made as cash in exchange for shares in the invested company. • comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.

3. is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments. most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering

4. In exchange for the high risk that 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. Advantages • Raising venture capital funding is no effortless business. However, more and more talented entrepreneurs are choosing to raise capital venture funding over other forms of finances to help them build their businesses. Venture capitalists usually show great interests in emerging start-ups or companies with viable business models and greater than average expected profitability. They look for a certain X factor before pumping in the much-needed funding to ensure an eventual handsome return. • Some of the most heavily venture capital invested industries are manufacturing, information technology, communications, healthcare, bio-technology, manufacturing and services.

6. How It WorksEvery business has a "life cycle" which involves a number of stages of growth and development. The size of investment closely related to the stage of investment. Venture capitalists refer to the following stages when making investments: • Seed StageIn this initial stage, the venture is still at the idea stage or may be in the process of being organised. Hence, it requires finance for research and development, which is funded by the entrepreneur's own resources. • Early StageThe company is usually in the process of being set up or may have been in business for a short time. However, it has completed the product development stage. Although it requires less capital funding, the company needs greater assistance to initiate commercial manufacturing and sales of its products than a later stage company.

7. Expansion/Development StageThe company is now established and requires capital for further growth and expansion. The company may or may not have made a profit at this stage. This is a period of rapid growth and the company will usually require several rounds of capital injection as it achieves the milestones set in the business plan. • Management Buy-out (MBO)These are funds provided to enable a current operating management and investors to acquire an existing product or business from a public or private company • Management Buy-in (MBI)These are funds provided to enable a manager or group of managers from outside the company to buy in to the company.

8. Venture capital is not suitable for all businesses, simply because venture capitalists usually look for: • Superior businesses~They seek companies with superior products or services targeted at fast growing or untapped markets with a strong strategic position. ~seek companies with high borrowing capacity, stability of earnings and an ability to generate surplus cash to quickly repay debt. • Quality and depth of management ~Venture capitalists must be confident that the company has the quality and depth in the management team to achieve its aspirations. ~seldom seek managerial control as they prefer to add values to the investment such as fund raising, mergers and acquisitions, international marketing and networks.

9. Corporate governance and structureThe venture capitalist must be assured that the investee company has the willingness to adopt modern corporate governance standards - non-executive directors, including a representative of the venture capitalist. Venture capitalists will stay away from complex corporate structures without clear ownership and where personal and business assets are conveniently merged • Appropriate investment structureBesides an attractive business opportunity, venture capitalists will also seek to structure a satisfactory deal to produce the anticipated financial returns to investors • An exit planlook for clear exit routes for their investment such as public listing or a third party acquisition of the investee company.

10. DTA Ventures Management Sdn. Bhd. DTA Capital Partners Sdn. Bhd. (DTA) was founded in 1996. specialized in advising, structuring and procuring equity or equity-linked finance schemes for Malaysian-based companies. In November 2001, through its subsidiary, DTA Ventures Management Sdn Bhd (DTAV), secured an Information & Communication Technology Fund (ICT Fund) worth MYR25 million from Malaysia Venture Capital Management Bhd (also known as 'mavcap'). Since then, the Group has taken a strategic position to focus on venture capital after recognizing the gap in funding younger companies in Malaysia. Venture capital firms

11. Perbadanan Usahawan Nasional Berhad • PUNB was set up on 17th July 1991. • Owned by Yayasan Pelaburan Bumiputra (YPB). • It was established under the Malaysian  Companies Act 1965 with an authorised capital of  RM300 million of which RM250 million is fully paid up. • PUNB's focussed on providing integrated entrepreneur development packages to assist Bumiputera entrepreneurs in Retail (SME) sectors. • It`s designed to help Bumiputera entrepreneurs in developing  business acumen, maintain a profitable venture, and shape their enterprise; par excellence.

12. Malaysian Venture Capital Management (wholly owned by Minister of Finance) -MAVCAP was incorporated on 19th April 2001 by the Government of Malaysia and was allocated RM500 million by the Minister of Finance Inc for investment in, nurturing and growing the technology sector and the investing and growing of venture capital market in Malaysia -ObjectiveTo nurture and develop the technology sector and the venture capital market in Malaysia by providing venture capital financing -Minimum Investment Limit: RM50,000 -Maximum Investment Limit: RM40 million

13. -Priority sectors • Telecommunication and networking • Information technology • Internet • Electronics • Semi-conductors -Application procedurecontact MAVCAP for further details of Investment GuidelinesApplication to be submitted to MAVCAP

14. Commerce Asset Ventures Sdn. Bhd. : • Objective - To provide venture capital financing and strategic business development to joint venture companies in agriculture sector • Maximum Investment : RM15 million or up to 10% of the total - Committed Capital of the Fund Company • Participating financial institutions / Implementing Ministry / Agency - Commerce Agro Ventures Sdn. Bhd. - Maybank Agro Fund Sdn. Bhd.

15. Eligibility criteriaMalaysian incorporated business, with operations in Malaysia and/or overseas that has: • Strong operating track record • Solid and feasible business plan • Strong demand for its products • Strong management team • Eligible sector / Types of financing • Fisheries • Livestock farming • Agro-biotechnology & Food technology • Industrial and Horticulture crops farming

16. Navis Investment Partners (Asia) Ltd • Navis was founded in 1998 in order to make private equity investments in buyouts, recapitalizations and financial restructurings in Asia. • contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements. • focuses exclusively on enterprises based in Asia, particularly South and Southeast Asia, where the principals of Navis have lived and worked for many years. • Navis participates in Cambridge Associates investment performance tracking survey and makes available its absolute and relative investment performance on request.

17. Other firms • Amanah Venture Sdn. Bhd. • Arris Venture Management Sdn. Bhd. • Malaysian Ventures Management Incorporated Sdn. Bhd. • Banyan Ventures Sdn. Bhd. • Matrix Divine Sdn. Bhd. • Mayban Ventures Sdn. Bhd. • BI Walden Management Kedua Sdn Bhd andBI Walden Management Ketiga Sdn. Bhd. • MSC Venture Corporation Sdn. Bhd. • BIMB Venture Capital Sdn. Bhd. • BPMB-NIF Modal Teroka Sdn. Bhd. • BTV Management Sdn. Bhd. • NetVal Management Sdn. Bhd. • Cache Capital (M) Sdn. Bhd. • Opus Capital Sdn. Bhd. • CAV Private Equity Management Sdn. Bhd.

18. OSK Private Equity Management Sdn. Bhd., OSK Venture Equities Sdn.Bhd. and OSK Technology Ventures Sdn. Bhd. • CIMB Private Equity Sdn. Bhd. • Commerce-Meridian Capital Sdn. Bhd. • PFM Capital Holding Sdn. Bhd. • Photonics Venture Capital Sdn Bhd • Expedient Equity Sdn. Bhd. • Pica (M) Corporation Bhd. • Firstfloor Capital Sdn. Bhd. • SB Venture Capital Corp Sdn. Bhd. • Ingenious Haus Sdn. Bhd. • Intelligent Capital Sdn. Bhd. • Spring Hill Management Sdn. Bhd. • iSpring Venture Management Sdn. Bhd. • Kenanga Private Equity Sdn. Bhd. • Tech and Bio Incubator Sdn. Bhd. • THG Capital Sdn. Bhd. And Amazon Plus Sdn. (TH Group)