Archive 29/03/2019

Australia Golf, Sports Technology

Current StatusRevenue Generating, Pre-Profit
Amount Invested1.3 million USD
Funding Required1,000,000 usd
DescriptionEstablished 1982 (Greencare)
CoreMaster 12 released 1984 to many accolades
Several machines developed through to 1990
Sold into many famous sites including:
Pebble Beach Golf Club
The White House
St Andrews Golf Club
Wimbledon Lawn Tennis Club
Royal Sydney Golf Club
Sydney Olympics
10,000 models sold from 1984 to 2011
Business OpportunityOf 32,000 golf courses globally;
Core target market
9,000 A & B (comp level) US Golf and country clubs
Compete for members on the basis of:
Facilities & especially golf turf quality
Problem
Turf solutions ubiquitous & undifferentiated – lack of innovation
CoremasterTM delivers Innovation
3 in one functionality = Avg: 38% lower capital cost, clear and roll (see App 2)
Acclaimed & proven superior turf surface (see App 1)
Solves the lack of competitive advantage on Turf
Sets a new standard in turf excellence and cost
$1.4 million dollars already invested by current management
Revenue / Business ModelLife Cycle = big & mature but growing
Golf globally is a $70Bil a year industry (Forbes)
Golf Equipment sales rise after GFC 2008 to 14 – 0.3%; 2014 +1.8% (Cision Research)
Capital intensity
Little innovation R&D; approx: 5% of rev; slow threat emergence if any
Coremaster applying some of capital raised to ‘new’ walk behind model = >5%
Advertising intensity
Very targeted advertising, low intensity; < 10% of sales rev
Coremaster budget Yr 1 -12.5% reducing to 3.4% in Yr 5
Industry concentration
Very high – 4 firms own 100% of the turf grooming industry
Patents and targeted marketing very important
Average firm size
Very large – Toro $2.6Bil total rev; Jacobson $2.8 Bil all turf care
Will compete on strong Brand, history and innovation
Management TeamKey personnel

Andrew Moss – CEO/COO
Andrew has been with the business in all of its various forms for over four years, he lead the establishing of the Thai plant and has been a driving force in the business establishing relationships with global trading partners.
Ake Sampong – Production Director ( Thailand )
Ake comes to CoreMaster Thailand with over thirty years engineering experience, he has been responsible for the development of the relationships with many of the part manufactures in Thailand and is in charge of the parts engineering team.
Steven Johnson – Manufacturing USA 
Steven has been involved with the golf industry for over twenty years and has worked for Smithco Humboldt industries for all of this time. Steven has worked in R&D, manufacturing, sales and management.

Paul Viviers –Accounting & Administration
Paul is an accountant with over thirty five years experience. He has run and managed several businesses and has a very practical and open work ethos. Paul comes to CoreMaster not only as an accountant but as a shareholder

Doug Haselwood –Technical Director (Australia) 
Doug is one of the few people that can make a CoreMaster by hand, having an intimate knowledge of all processes and procedures involved in the development of the Xtreme range and is excited to be involved with the walk behind model.
Company BackgroundCoreMaster Pty Ltd is the owner of the assets and intellectual property developed by Greencare Industries and CoreMaster International.

Greencare Industries was a global leader in turf aeration with over 10,000 units (CoreMaster 12) sold worldwide, 80% being into the US market.

CoreMaster Pty Ltd has invested in the development of the next generation of turf aeration machines which has resulted in quantum improvements in now market ready machines.Ownership & Corporate Structure
CoreMaster Pty Ltd
CoreMaster is an Australian registered company
Funding MilestoneSince acquisition of the intellectual property, significant steps have been taken in development of the product, manufacturing capability and distribution, including:
• 2013 established relationship with Positron Engineering, Thailand 
• 2013 sold machines to Ridgewood Golf Club in Texas and Broadmoor Golf Club in Seattle 
• 2014 production of the first CoreMaster Xtreme in Thailand
• 2014 CoreMaster starts internal manufacture of own parts 
• 2014 established CoreMaster Thailand LTD 
• 2014 sold five CoreMaster 12 models to Toyo green in Japan 
• 2014 sold first Thai manufactured CoreMaster Xtreme to Malaysia 
• 2014 moved into purpose built factory in Thailand 
• 2015 entered into a distribution agreement with Luber Brothers Texas Care to supply the CoreMaster Xtreme for 2016 
• 2016 entered into a manufacturing agreement with Smithco Humboldt industries to manufacture in the USA
% Equity Allocation40 %
Expected ROIEXPEXTED RATE OF RETURN IS 150% OVER 5 YEARS
Risks and MitigationJohn Deere
Toro
Redexim

Are three of CoreMasters major competitors 

John Deere is a manufacturer based in the USA. They produce a range of globally recognised equipment for agriculture and turf grass industries. They also have a large marketing and R&D budget however John Deere turf aeration products have not changed in twenty years and don’t seem to be committed to turf aeration products as they focus more on the heavy agricultural machinery business.

Toro are similar to John Deere but only specialise in the sports turf industry and do not manufacture large machinery as John Deere do. Their weaknesses can be seen as they do not innovate, and seemingly rest on their reputation as a market leader of their turf aeration products such as the Toro 648. Additionally, the cost of the spare parts for their products is uncharacteristically high potentially due to their dominance in the market.

Redexim have very strong brand recognition of Vertidrain, which is iconic in the industry. They too are based in the USA. The general market consensus is that their machines are heavy, unwealdy and more time consuming on maintenance which also cause damage to turf surfaces due to the old technology utilised in their aerators. 

CoreMaster believe that people will move from the above competitors to our machines because of the quality and depth of aeration that our machines produce which is the best in the market place. It is the quietest and most stable machine on the market as well as extremely user and mechanic friendly. Our maintence cycles are now, with the new CoreMaster Xtreme, spaced at six month intervals. 

Once the CoreMaster Xtreme enters full production and starts to be sold to golf courses, the company does not expect our competitors to react in a negative manner as the CoreMaster Xtreme is quite revolutionary. Our competitors will at first adapt the ‘wait and see’ approach to see how the industry reacts to this technology.
As the machine gathers momentum, people will start to take notice and will have an adverse effect on the current competitors. If competitors start to lose sales they will have to either compete on price i.e. lower their prices or try to develop a similar machine 

Our competitive advantages are:
• This is the first new aerator design in 30 years with new patented coring technology 
• Utilising aircraft grade aluminium and carbon fibre transmission systems to reduce flying mass and vibration resulting in a stable and quiet machine. 
• The CoreMaster Xtreme range cores twice as deep as any other coring machine on the market achieving a perfectly vertical hole up to 9” (210mm) deep.
• Our new design is 70% faster than the original CoreMaster 12 and a person can complete a tine changeover in 2 minutes.
Exit Strategieswe are looking at a five year time frame to excit
Company NameCoremaster pty ltd
Website/Facebookhttp://www.coremaster.com.au
Business Address6 Irrubelle rd Newport NSW Australia
Contact PersonAndrew Moss

Hydron carbon emission elimination in fossil fuel engines

Current StatusPre-Revenue
Amount InvestedRM 1.5 M
Funding RequiredRM 2.5M
DescriptionThe Hydron is a patented technology by xxxx Sdn Bhd a R&D company.
The development took more then 4 years to create the only viable solution to eliminate carbon emission in all vehicles using diesel or petrol engines.
In addition it saves the users up to 30 to 40% on fuel consumption.
Business OpportunityThis device brings about a cleaner non toxic environment while keeping operating costs lower for users of vehicles, especially for fleet operators including marine boats.
Huge business opportunity in all parts of the world.
Revenue / Business ModelThe business model is to licence the technology by region / territory to automobile linked companies.
Or by JV in specific countries.
Management TeamComprises of ex Global Sr VP of operations of a US MNC as MD n founder, major shareholder.
An ex Sr Mgr of Malaysian GLC, and a French Plantation company.
A US partner n a Marketing Expert.
Company BackgroundHarit Ecotech was formed in 2017. The company is heavily technology development based. It employs all engineers.
The technologies being developed are focussed on environment, green technology as well as green medical devices.
Funding MilestoneThis funding is for pre commercialisation.
Products are ready to sell. In few hundred vehicles in Malaysia, China and the UK are already running with the Hydron.
This funding is for expansion of facilities, hiring of relevant staff and sales and marketing efforts.
% Equity Allocation10%
Expected ROI17%
Risks and MitigationAll auto buffs are focussing on electric vehicles. There are major challenges to this technology.
Meanwhile, the Kyoto protocol demands the emission limits are met by vehicle producers.
The Hydron is a perfect low cost, easy to fit solution.
Exit Strategies1. Sell to major auto companies 
2. Licencing
3. IPO
4. Part of 3rd auto focus Malaysia
3 years
Company Namexxxx Sdn Bhd
Website/Facebookxxxx
Business Addressxxxx Shah Alam. Selangor
Contact PersonMohana K

Air Cargo East Malaysia Funding

Current StatusLoss-making, Turnaround
Amount InvestedRM2mil
Funding RequiredRM1mil
DescriptionWe are doing logistics/forwarding services by air to Sabah & Sarawak since 1994
Business OpportunityDirectly, we are linked with airlines however have to go through airlines sales agents as we do not have enough to sustain the strict payment terms as required by airlines.

Due to that, we have turned away all our regular clients until the day we could provide our clients with 30 days term, and able to sustain to pay the airlines in prompt 14 days.
Revenue / Business ModelSending general cargo, with regular daily clientele.
Management TeamExisting team, 6 persons,
2 Drivers, one manager, one clerk, 3 other operations executive.
Company BackgroundWe have been achieving min of 350k sales/monthly since 2011, after a huge decline as big players entered the industry.
Funding MilestoneProposed to use the funding as a deposit to several airlines, also as cashflow for our current business in order for us to request our old clients to continue using us by giving them 30 days terms.

Also, would be using the funds to hire marketing executives in order to boost up the sales from previous clients.
% Equity Allocation30%
Expected ROI8% yearly
Risks and MitigationInvestment risks : Clients not paying the debts, however this is mitigated as we only do regular/strong financial backing clients since 2011,

Rest all cash term basis, before goods are delivered.
Exit Strategies6 months period, if non performance, able to get back entire deposit from airlines directly.
Company NamePRESTIGE CONTRACTS SDN BHD
Business Address75, PUJ 3/3, Taman Puncak Jalil, Bandar Putra Permai, 43300, Seri Kembangan
Contact PersonDarren

One-stop travel solutions, fulfill the dream of travel the entire world

Current StatusGrowth
Amount InvestedRM2500
Funding RequiredRM1000000
DescriptionWe build a one-stop solution for travel industry, where you can book accommodation, transport and day trip. Imagine when you go backpack you can plan and book everything that you need in a place. We will have a digital map for traveller to plan, it will be a map for their dream travel, they can start budgeting and save for their trip in advance. We are currently in phase one, expanding our accommodations cover area.
Business OpportunityTourism market size in Malaysia is around 86billion ringgit. 
Currently, there are no solutions for booking the entire travel trip in a place i.e, accommodation, transports, day trips and experiences.
Travel the entire world is unaffordable, we are trying to change this by building an affordable one-stop solution travel operators to fulfill people dream of travel the entire world in their life-time.
Revenue / Business ModelService charges from the management of the accommodations, interior design fees of the accommodation, transport fees, day trip fees and technology subscription.
Management TeamCurrently our company have a total of 11 employees age between 20-35.
Company BackgroundStarted with no capital, as we have a positive cash flow business model.
Business started running at 1/9/17 as sole proprietor, incorporate as Sdn Bhd on 1/7/18.
Currently has a monthly sales of around RM400k, target to achieve a revenue of 4million this year.
With the funding, we expect that we can increase the revenue 10-20 times faster in 1-2 years.
Funding MilestoneWith the RM1million funding, we expect that we can increase the revenue 10-20 times faster in 1-2 years to RM40-50million
% Equity Allocation5
Expected ROI6-12 months
Risks and MitigationOperation failure and quality management failure
Exit StrategiesIPO by 2027, will consider any buyout in the process
Company NameRENTRADISE SDN BHD
Website/Facebookhttps://www.facebook.com/rentradise/
Business Address29-2, Jalan Molek 3/20
Contact PersonWong Chee Fatt

Mat Laundromat Self Service Laundry

Current StatusPre-Revenue
Amount Invested400000
Funding Required150000
DescriptionSPIN CITY ENTERPRISE is an existed self-laundry business that has two outlets which are located at Bukit Subang and Bandar Pinggiran Subang, Seksyen U5. These two outlets are operated by own brand not by any franchising program. SPIN CITY ENTERPRISE plan to expand another outlet that will target a customer of Perumahan Penjawat Awam 1Malaysia (PPA1M) Bukit Jalil and Parkhill Residence, by own laundromat name, which is MAT LAUNDROMAT. Based on existing experience, MAT LAUNDROMAT will be setup without any contract bonds, because most of materials and some services will be sourced out by SPIN CITY ENTERPRISE itself.
Business OpportunityThere are 1536 units on PPA1M and 1062 units on Parkhill Residence and targeted customer is about 50% of it. SPIN CITY ENTERPRISE will be provided fully-automatic coin operated washing machines can be used around the clock. This business also may ease the resident for washing clothes routine of work. SPIN CITY ENTERPRISE is equipped with washing machines imported from the United States which complete washing, bleaching and drying all within 60 minutes, allowing customer to running other errand while their clothes are being washed.
Revenue / Business ModelTargeted 30 sales per day that will make RM45,900.00 gross profit per month and for the nett profit is RM21,445.00 after several cost including loan, lease, raw materials and etc.
Management TeamAhmad Mukhlis – Manager and Technical
Muzlifah – Account
Company BackgroundDate of started – 1 October 2018
Sales – RM162,000.00
Profit – RM45,000.00
Funding MilestoneRM150,000.00
% Equity Allocation10% per annum
Expected ROI36 month
Company NameSPIN CITY ENTERPRISE
Business AddressNO 20, JALAN PLUTO AY U5/AY BANDAR PINGGIRAN SUBANG, SEK U5, 40150 SHAH ALAM, SELANGOR
Contact PersonAHMAD MUKHLIS BIN ZULKIFLI

Private Investor : Samiur

Preferred Investment AmountRM 100k
Preferred Investment OpportunityAny business that is fully ISLAMICALLY compliant
Will NOT Invest InHaram/doubtful business/services
Preferred LocationDoesn’t matter
Public ProfileMore than 18 years of entrepreneurial experience.
AddressKuala Lumpur

Private Investor : Prashant Bala

Preferred Investment AmountRM200k
Preferred Investment OpportunityTechnology and Healthcare
Will NOT Invest InRestaurants and Service provieders
Preferred LocationDoesn’t matter
Public ProfileMy name is Prashant and I have been in the sales and marketing business for the past 10 years. I have 8 years of sales and marketing in Australia and my strengths are marketing and growing a company. I am interested in investing in any ideas related to technology and healthcare and prefer to invest in start up companies that need my help in growing and building the company from base.
AddressKuala Lumpur, Malaysia

Hotpot chain with karaoke, delivery and catering

Current StatusRevenue Generating, Pre-Profit
Amount InvestedRM500,000
Funding RequiredRM2.5million
DescriptionThe Hotpot is now a 1.5 years old steamboat restaurant at Publika (KL) that is well-known for its signature soup base, homemade ingredients, Japanese sake pairing and dine-in karaoke rooms. The idea is to transform the hotpot culture in Asia to one that combines entertainment with good food and convenience. We plan to expand The Hotpot’s current capacity to meet the demand from customers – more hotpot karaoke rooms, more selection of Japanese sake, full-on delivery service / catering.
Business Opportunity(1) Hotpot chains in Malaysia are limited to the Grand Imperial and Paradise Groups which are banquet-style restaurants. There is a gap in the market for hotpot chains that offer casual environments with focus on homemade and msg-free ingredients. 

(2) Hotpot with karaoke is a trend that is picking up fast. To test the market, the current restaurant has 1 private karaoke room with dine-in hotpot. Even with a minimum spend requirement of RM800, the room is booked almost daily with waiting list. Spending per room goes up to RM1,200 on average per table of 8 pax; and customers range from big families, groups of friends to corporate dinners. 

(3) Online food delivery is on the rise but not many hotpot restaurants offer food delivery. The Hotpot is the first of its kind to sign up with Delivereat, Foodpanda and Honestbee for hotpot delivery. With only 2 types of set menu on the food delivery platforms, there are already at least 20 delivery orders monthly. There is potential for the market to expand further especially with ease of online orders and even catering.
Revenue / Business ModelThe business will generate revenue via:
1) Joint ventures as first expansion
2) Franchise locally and internationally
3) (Ultimately) Sale of business to big corporations
Management TeamThe current team managing The Hotpot are the co-founders themselves. 

Mandy Woo is Co-founder and Chef of the restaurant. She is responsible for the conceptualizing of the menu, including recipes for all homemade items and soup base. She is also responsible for the food presentation, food quality and food inventory. 

Joe Teh is the Co-founder and General Manager of the restaurant. She is responsible for hiring, finance, procurement, marketing, overall inventory and general day-to-day management of the restaurant. 

Other planned members of the management team to be hired:
Finance and Procurement Officer
• Manage all financial and procurement management activities for the restaurant including bank account and petty cash reconciliations; accounts payable; sourcing and contracting of suppliers; review and verification of invoices; data entry into accounting systems; fund transfers; cheque and cash payments.
• Establish and manage systems for cash payments and fund transfers to staff including per diems, accommodation/travel allowances, expense claims and petty cash.

Assistant Operations Manager
• Supervise daily operations of organization. 
• Develop productive, profitable and achievement oriented working environment for employees.
• Address operational issues and concerns in a timely fashion.
• Supervise operations team to ensure operational excellence and excellent customer services.

Marketing Executive
• Develop marketing plans including advertising, PR and social media activities
• Work closely with external creative freelancer to design menu and marketing materials 
• Produce creative content, including videos and social content 
• Source and secure partnerships or event opportunities with social influencers or relevant brands that complement the restaurant
• Maintain and update customer databases
Company BackgroundLooking back at the business milestone 2017 – 2018 
April 2017: 
• Secured partners; established Good Food Ventures
• Sourced for restaurant location
• Trial and error on menu items and soup bases

Jun 2017:
• Secured location at Publika, Solaris Dutamas
• Pre-seed, 1st capital – RM200,000
• Renovation commenced
• Hiring of restaurant staff

Aug 2017: 
• Renovation completed
• Full team of 7 staff hired for the restaurant
• Pre-seed, 2nd capital – RM150,000
• Restaurant officially opened



Sep 2017: 
• Sales started to pick up
• 1st Facebook review received and it was positive
• Engaged blogger reviews 

Nov 2017:
• Experienced first staffing crisis – loss of local staff
• Engaged foreign worker agency
• Pre-seed, 3rd capital – RM60,000
• Sales doubled since opening
• Introduced all-you-can-drink sake promotion to encourage sake pairing with hotpot

Dec 2017:
• Full team onboard again – all foreigners
• Menu is updated to include more items and new pricing
• Achieved highest sale ever – RM93,000
• Facebook and Google reviews rated at 5/5 based on 25 reviews 

Feb 2018
• Pre-seed, 4th capital – RM80,000
• Operations stabilized, restaurant team turnover reduced to 0%
• Food costs adjusted to 40% (from 45%) of sales revenue
• Suppliers granted restaurant 30-day payment terms

Jul 2018
• Engaged delivery partners – Delivereat and Honestbee 
• Sake choices increased from 6 types to 25 types, supplier granted consignment
• Food costs adjusted to 35% of sales revenue

Oct 2018
• Trend of sake drinking is apparent; 7 out of every 10 tables will order sake with hotpot
• Engaged delivery partner – Foodpanda
• Achieved YoY growth of 36% for sales

Nov 2018
• Achieved YoY growth of 15% for sales

Dec 2018
• Menu is updated to include even more items 
• Year-end review of the business revealed the challenges and strengths of The Hotpot
• Kick started research and plan for Seed funding
Funding MilestoneMonth 0: 
• New restaurant site confirmed – site downpayment budget at RM 100,000
• Seed, 1st capital investment – RM 1 million
• Renovation commences 
• Hiring of restaurant and management teams

Month 2: 
• Renovation completed
• Pre-opening trial
• Rebranding + Photography 
• Influencer Marketing 

Month 3: 
• Seed, 2nd capital investment – RM 500,000
• Restaurant official opening
• Promo-driven Marketing to re-ignite customer interest / reconnect with regulars 

Month 4: 
• Achieve RM93,000 in monthly sales (as per forecast below)
• Secure payment channel partners
• Secure delivery partners
• Secure catering partners
• Development of mobile app with loyalty programme + ordering platform
o Integrated with payment channel (ipay88 / Paypal)
o Integrated with delivery partners (Honestbee / Foodpanda / Grab Food)
o Integration on catering 

Month 7: 
• Seed, 3rd capital investment – RM 150,000
• Launch of mobile app
• Marketing of mobile app
• Promotion on loyalty programme
• Marketing of catering offer
• Source for potential joint venture partner for 2nd restaurant

Month 9:
• Secure joint venture partner
• Source for 2nd restaurant location

Month 12: 
• Secure 2nd restaurant
• Seed, 4th capital investment – RM500,000
• Renovation commences
• Hiring of restaurant team

Month 14:
• Renovation completed
• 2nd restaurant pre-opening trial

Month 15:
• Seed, 5th capital investment – RM255,000
• 2nd restaurant official opening
• Fundraising for Series A in preparation for regional joint venture / franchise – RM8 million 

Month 19:
• 2nd restaurant achieves positive cash flow operation
• Secure Series A
% Equity Allocation49%
Expected ROIAchieve 11% return on investment to investors after the first two years and 14% after the next two years.
Risks and Mitigation• Copy-cat competitors
• Staffing issues
• Risk of infection outbreak
Exit Strategies• Merger and acquisition
• Selling of equity
• Selling of business
Company NameGood Food Ventures
Website/Facebookhttp://www.facebook.com/thehotpotpublika
Business AddressD1-G4-9 Solaris Dutamas, Jalan Dutamas 1, 50480 KL Malaysia
Contact PersonJoe Teh

Private Investor : Ang Siao Kim

Preferred Investment Amountmin RM100, max RM20K
Preferred Investment Opportunityanything that has potential to grow and stable in long term
Will NOT Invest InMLM
Preferred LocationDoesn’t matter
Public ProfileI will be investing in a personal capacity, once in a year depending on the capital required.
I am open to all ideas.
I am in the lookout for long term sustainable business / income stream for my retirement planning cashflow.
AddressSUBANG JAYA, SELANGOR, MALAYSIA