Archive 19/11/2019

The 4 Key Stages in Capital Raising Processes

You’ve developed a product and won a handful of customers. But now you face the biggest challenge of your venture’s short life – you don’t have enough cash to pay your employees and suppliers. Should you shut down or can you convince investors to keep your venture afloat? Typically only less than 10% of entrepreneurs that seeking money from investors will make it through the entire 4 stage process.

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How to Raise Venture Capital

Venture Capital

The World of Venture Capital

Before you go out and start raising money, there are a few things you need to know:

Venture capitalists don’t want to hear about ideas; they want to see your company launched before you ask them for money. If you weren’t willing to put the time and money into launching a beta version of your company, why would they want to give you money?

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Durian Farming Resort Project

Current StatusGrowth
Amount InvestedRM200,000.00
Funding RequiredRM 8 million
DescriptionCurrently we have a piece of land measuring 6.36 acres located near Karak town, State of Pahang, Malaysia. The land has been planted with 200 durian trees whereby 170 trees are musang king species and 30 trees are black thorn species. The trees currently 2 1/2 years old and 10 to 12 feets tall. We plan to have a durian farming resort style on the land because of the strategic location. The land is just beside main road equipped with direct water and electricity.
Business OpportunityWe started with durian cultivation on the land. We have successfully planted 200 durian trees with the experience from our cultivation consultant. Currently the durian trees are at stage 2 after 2 1/2 years. The trees are all very healthy. The market for durian fruit especially musang king and black thorn is big for local and export market. China market is going to be huge . Singapore and Hong Kong market are stable. China already approved that Malaysia can export durian in whole fruit form. But there are still a lot of China tourist coming to Malaysia every durian season to taste the freshness. Locally, we can see increasing local tourist venturing into durian orchard to try the fresh from farm durians and experience farm living.
Revenue / Business ModelOur priority revenue will be from durian fruits which only have 2 seasons annually. Initially between 1st year to 3rd year period of trees producing, fruits are not many. Average about 50 to 70 fruits per tree. After the 4th year of producing, average will be 100 fruits per tree and keep on increasing. Maximum about 250 fruits per tree. The price of musang king durian in Malaysia average about RM40 per kg and each durian can weigh from 2 to 3 kg. In Singapore, at least SGD20 per kg and China is at least USD30 per kg. We can sell the durians to the exporters or local distributors in bulk. Second, we can get local tourist and also China tourist to visit and stay at our farm to try the fresh durians and experience farm living. For those months without durian season, tourist can come for homestay, fishing and try our local home cook cuisine. For info, durian tree life span at least 50 years. So the revenue from durian sales can go up to millions each year because price keep on increasing over the years. Experienced durian farmer or grower getting less and lesser.
Management TeamMy management team consist of 3 main person. The cultivation consultant in charge of durian trees. The manager in charge of the farm management and finance. The marketing person in charge of planning and sales. In future, we plan to get a cook in charge of Food and beverage.
Company BackgroundWe started this farming project since middle of 2016. With land clearing, cultivation and planting. We also did water piping to each durian tree. The water source from internal pond. Fencing the whole land. Invested in about RM 200k. Up to date, no sales and no profit yet. What we have achieved now is the trees are growing healthily and estimate another 2 years will start to produce fruits. We can see the trees successful rate now at 90%.
Funding MilestoneWe need funding of RM 8 mil. Firstly to purchase the land cost about RM 5 mil because the land is not belong to us. We have verbal agreement with the land owner on certain percentage of profit sharing from sales of durians. Another RM 3 mil is to built few storeys of hotel/home stay building for tourist accommodation. Furthermore, to build a rest area or eating place on top of a pond. And also for the farm maintenance cost for 2 years. All this will be completed when the durian trees start to produce fruits.
% Equity Allocation50%
Expected ROI50% of sales or revenue will be distributed to shareholders annually.
Risks and MitigationThe most risk is if the durian trees failed initially. But we have already passed the first stage. The successful rate now is very high.
Exit StrategiesIn future, the shareholders who want to exit can sell their shares back to the company based on the company current and future revenue estimation and also the land value. Or we can sell the whole company together with the orchard to potential investors. The most suitable time is after 10 years onwards.
Company NameAscension Roofscape
Business AddressKarak, Pahang, Malaysia
Contact PersonJacky Chan

Private Investor : Andrew Ho

Preferred Investment AmountRM50k
Preferred Investment OpportunityTraditional brick-and-mortar, with or without tech angle
Will NOT Invest InStart ups with proven revenue
Preferred LocationKuala Lumpur
Public ProfileMy experiences involve banking and risk management in the trade & project finance, credit risk mitigation, working capital funding in various industries from construction/infrastructure, electronics, shipping, retail, commodities trading (import/export).
AddressTanjong Katong Road, Singapore

Factory for Manufacturing with Halal & HACCP

Current StatusBreak-Even, Profitable
Amount InvestedRM200,000
Funding RequiredRM300,000
DescriptionWe source ingredients, to produce our own, packaging it, and supply to groceries.
We also import products from overseas, and supply to groceries.
Product price range from RM5-20. Target audience: health conscious person.
For the last 5 year, we spent our time only on food research and various laboratory test.
We manage to create our own F&B without preservatives, & healthy.
We supplying to more than 40 outlets around Malaysia & Singapore.
Business OpportunityWhile we begin, we spent most of our funding in R&D, & machines, we have not spend much on marketing.
Now for the next phase, with a bigger factory & certifications, we would like to add new baby & toddler product food, packaging, and marketing.
Currently we been selling to Singapore, & received request from other countries, but we unable to supply due to requirement.
Current we have more than 40 distribution point, we have another more than 50 more distribution point in our waiting list.
Revenue / Business ModelWith our existing network & access, by adding more product SKU & certifications, we can grow much faster.
We been supplying, now is the stage we need to have halal & HACCP to have wider range of target audience & export.
Management TeamWe are the leading healthy Fast-Moving Consumer Goods beverage manufacturer in Malaysia. We have great knowledge in product ingredients. We will only produce food that we will consume our own too, unlike most manufacturer in Malaysia only produce chemicals food for the public.
We are just a small team, we hope to grow bigger and bring awareness to produce & educate the people to eat the correct healthy food.
Company BackgroundWe started since 2014 – Research
2017 Develop
2018 Distribute
2019 Incorporation of Sdn Bhd
Our Annual Sales Turnover for 2018 is RM95,000
Funding Milestone1. Move to a proper factory.
2. Upgrade/New packing
3. Apply Halal
4. Apply HACCP
5. Distribute more locations
6. Massive Marketing
% Equity Allocation10%
Expected ROI10-20%
Risks and MitigationIndustry margin squeeze – volume
brand erosion – educate
Exit StrategiesAfter 3-5 years
Company Namexxxx Sdn Bhd
Business Addressxxxx Shah Alam, Selangor, Malaysia

Corporate Investor : Fiona Li

Preferred Investment Amountup to 2 million USD
Preferred Investment OpportunityLogistic, e-commerce, Mobility, Fintech, Smart City, SaaS
Will NOT Invest InBlockchain, Real estate
Preferred LocationSouth East Asia
Public ProfileChailease Holding is a finance and leasing group operating in Taiwan, China, and SEA countries. Chailease provide financial services, such as leasing, working capital financing, auto financing, and installment, to SMEs and consumers.
Organization NameChailease Holding Company Limited
AddressNo.362, Ruiguang Rd., Neihu District

VC Screening Process

As a venture capital investment manager, opportunities land on my desk all the time, time is precious, I cannot be “All to Everyone”, and more importantly, if I choose to invest my time and resources into an opportunity with mediocre returns, I will forego other, more lucrative opportunities, something we term as “opportunity cost”.

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Private Investor : Fahad Ramzan

Preferred Investment AmountRM100K to RM400K
Preferred Investment OpportunityIT, FOOD, Hospitality, Homestay
Will NOT Invest InStocks
Preferred LocationDoesn’t matter
Public ProfileMy DNA is that of an entrepreneur. But as someone who has spent his career in as a director in a family-owned business corporate, I define that term more broadly than most. My brand of entrepreneurship means that I see opportunity where others see a void, I see solutions rather than problems, and no matter how hard it gets I persevere, learning and adapting quickly from mistakes along the way. I am excited by and passionate about opportunities to lead businesses to the next level of success, infusing the teams I lead with energy and focus, and helping them to navigate strategic challenges and to chart new paths to growth.