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Bumiputera and Technology Venture Capital Sdn. Bhd.

Objective

To pool and mobilise investment from public and private investors to provide risk capital to entrepreneurs (Bumi, Non-Bumi and Non-Bumi joint ventures) that have the potential to achieve high growth and superior returns.

Target Companies

Penang based companies that has the potential to achieve a high growth and further develop into profitable companies.
Companies outside the region especially that of the IMTGT where Penang based entrepreneurs or company has a substantial stake.
Companies outside Penang that has the track record and strong possibility of being able to be listed on the KLSE or MESDAQ in 1 – 3 years time.

Investment Focus

We look for investments opportunities in mezzanine companies which have the potential to be listed in 1 to 3 years on both the KLSE or MESDAQ. These companies must be a manufacturing concern or involved in the following areas :

Information & Communication Technology (ICT)/ Software Solutions
Electronic Commerce /Internet
Oil & Gas
Multimedia
Telecommunications
Advanced Material
Energy & Environment
Services
Biotechnology
Emerging Technologies
Note : We can however consider others on a case to case basis excluding property related

Enterpreneur Development Program

The primary objective is to create Bumiputera entrepreneurs to be involved in high technology.
BTVC also encourages the setting up of joint-venture projects between Bumiputera and Non-Bumiputera with the objective of exposing Bumiputera entrepreneurs to good management practises, technical expertise and international marketing.
Funds Allocated : RM5 million
Approved Investment : RM5.395 million
Number of Companies Invested : Seven(7)

Incorporation

Date of Incorporation : July18, 1996
Operation Commence : January 1997
Fund Size : RM39 million

Cache Capital Group of Companies

“Cache is a place where you keep your collection of supplies to make it available for future use. As the name implies, we are in the business of providing value added services to high growth companies to assist in their transformation into global leading corporations.”

Overview

Cache Capital Group of Companies

Cache Capital (M) Sdn Bhd, a company registered with Securities Commission as a Venture Capital Management Company, is in the provision of financial and financial related services to companies in their various growth stages.

Cache Ventures I (M) Sdn Bhd, a company registered with Security Commission as a Venture Capital company, is a private equity investment fund company.

Cache Consulting (M) Sdn Bhd, a company that provides business consultancy services.

Our Range of Services

Currently, we offer the following services to our clients:

Consultancy Services
We offer our expertise to assist our clients in the following areas

– Corporate Advisory on growth progress
– Equity Fund Raising structuring
– Structuring for Mergers and Acquisition
– Structuring for sale of the company

Investment
We invest into high growth companies with potential of a capital gain within the medium term. Our Investment Committee is headed by En Johari (Patrick) Low, a well respected person in the corporate and investment world.

Fund Raising
We assist companies to raise private equity funding as well as for Management Buy Out during growth stage, mezzanine financing and Pre IPO stage.

CIMB Private Equity Sdn Bhd

CIMB Private Equity Sdn Bhd was set up to bring the Group’s financial expertise, experience and network into the sphere of private equity investments. It provides equity capital to mature companies in most industry sectors seeking expansion capital, for restructuring purposes and fund buyouts.

CIMB Private Equity invests directly into companies via equity or quasi-equity investments, and creates strategic alliances by investing in other private equity funds, focusing on medium to long-term investments. Through the Group’s well-established local network and expertise, it is well positioned to assist foreign investors and international companies to tap into Malaysian investment opportunities. In addition, CIMB Private Equity’s strategic alliance with Navis Capital Partners provides the reach into other markets in the region.

CIMB Group Profile

CIMB Group is Malaysia’s second largest financial services provider, and fifth largest in Southeast Asia by total assets. It is owned by Bumiputra-Commerce Holdings Berhad (BCHB), which is listed on Bursa Malaysia with a market capitalization of over US10 billion.

We operate as a universal bank offering a full range of financial products and services, covering corporate and investment banking, consumer banking, treasury, insurance and asset management. We offer products and services on a dual banking basis, giving customers a choice of both conventional and Islamic solutions.

As a universal bank, we are able to serve everyone from all walks of life in Malaysia as well as throughout the region, including large regional corporations, domestic listed companies, entrepreneurial start-ups, high-net worth individuals, pensioners and children. Today, we serve close to seven million customers in over 600 locations through over 25,000 staff.

At present, our main markets are Malaysia, Indonesia and Singapore, countries in which we have full universal banking capabilities. Our presence in 11 countries covers South East Asia and major global financial centres, as well as countries with which our South East Asian customers have significant business and investment dealings.

In addition, we extend our regional reach and range of products and services through strategic partnerships. Our partners include the Principal Financial Group, Aviva plc, Allianz Malaysia Berhad, Mapletree Capital Management, Bank of Tokyo-Mitsubishi UFJ, Standard Bank plc, Daewoo Securities, the Kanoo Group, Malaysia Airlines, International Currency Exchange, EDS, Pos Malaysia, 7-11, Singer Malaysia and many more.

Our vision is to be “Southeast Asia’s most valued universal bank”. This means that
to customers, we want to be your bank of choice,
to employees, we want to be your preferred employer,
to shareholders, we want to be the bank to which you accord the highest premium,
to the communities in which we operate, we want to be the partner of choice to aid sustainable community development

DTA Ventures Management Sdn. Bhd.

DTA Capital Partners Sdn. Bhd. (DTA) was founded in 1996. In the early days, it specialized in advising, structuring and procuring equity or equity-linked finance schemes for Malaysian-based companies. In November 2001, the company, 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. The Group now consists of the holding company, DTA, and the wholly owned subsidiary DTAV.

[Note: mavcap is the technology venture capital arm set up by the Ministry of Finance of Malaysia to manage a fund of MYR500 million. The effort is to promote technology business in the country.]

Recent Development

DTA is presently raising a new MYR100m venture fund targeting the ICT & the Services Sector (the Fund). So far, a commitment of RM32m has been secured from three parties.

The new fund will focus on

later stage ICT companies
the services sector
the energy-related sector
In the ICT sector, investments are expected to be made in companies operating in the enabler space. This means that their products and services are the engines for the development and commercialization of new and novel:

technologies
support & infrastructures
services
Our present ICT Fund portfolio already consists of young companies operating in BPO, mobile messaging, e-learning, operating systems, hardware & software transmission equipment, wireless security, etc.

The remaining part of the Fund will be for the purchase of pre-IPO and restricted placements of quoted shares, and new issues of private shares in the energy-related and services sector: education, food, healthcare, environment, energy related, etc.

The energy sector is identified as one of the core sectors of the economy ear-marked for development to reduce dependency on the non-renewable fossil fuels. The Services Sector, on the other hand, worth some MYR150bn yearly is chosen as an increasingly higher value-add sector to the Malaysian and the regional economies.

INVESTMENT POLICY

The selection criteria for our funds with respect to the target investments will be as follow:

Management capability and integrity
Proven market and concept (or technology) with a strong market position or competitive advantage
Ownership of significant intellectual properties of commercial interests
Good growth prospects or scalability
Existence of an identifiable divestment strategy
Investment will generally take the form of equity participation in prospective companies and businesses. Investments may also take the form of convertible securities and options as an integral part of an investment structure. Short-term advances may also be granted on exceptional basis.

Maximum investment size per company for the Fund is MYR3.0 million. While the size is not huge, co-investors could be sought. The types of instruments proposed could be Common Shares, Convertible Preference and Convertible Loans. The ICT Fund is fully invested as at to-date.

Ideally and under normal circumstances, the Fund shall not hold more than 49% in each of the investee companies. Exceptions are allowed subject to internal approvals.

Lastly, holding period for each investment is limited to a maximum of 5 years.

STRATEGY

The mission of the Fund Company is to identify, invest and nurture Malaysian (and a limited number of foreign) businesses operating in the technology space mentioned before, so that they will contribute to the overall economic growth of the country.

At least 30% of the fund will be utilized to finance start-up investments while the balance will be allocated to emerging companies that are at least some initial track records in commercialization.

Investment focus is on the enabler space in the ICT, services and energy-related sectors, with emphasis on companies in the expansion stage.

VALUE-ADD

DTAV will assume the role of an active investor on behalf of the Fund Company. Although DTAV is NOT likely to be involved with the day-to-day running of the business, it will be keeping close touch with the broad directions of the investee companies. In this respect, we wish to be intimately involved.

The following are some of the areas in which DTAV may be of assistance:

Financial planning and advisory
Arrangement of technology alliance or transfer
Project bids and tenders
The partners’ past successes reflect well on our ability to add value to our investments.

PORTFOLIO

The partners have invested more than MYR16 million in the following technology sectors for the present Fund:

Commerce service providers
Business process outsource
E-learning
Mobile messaging
Wireless security and anti-jamming systems
Wireless sensor network
Systems integration
Multimedia, entertainment and advertisement
Clinical software system
Hardware transmission equipment
Open source operating system

Ethos Capital Sdn Bhd

Ethos Capital Sdn. Bhd. launched its first private equity fund, namely Ethos Capital One, in March 2007. Ethos Capital One is a RM215 million fund that is anchored by leading financial institutions and high net-worth individuals. The Company is based in Kuala Lumpur and is registered with the Securities Commission of Malaysia.

FOCUS

The fund focuses on investing in businesses within fast-growth ASEAN countries. Whilst investment is not limited to specific industries, we seek companies with proven operational track record, innovative management team and strong growth potential.

STRENGTH

In addition to providing funding, we also create value by providing guidance on business strategy and operational best practices as well as assisting with market access.

www.ethoscapital.com.my

Expedient Equity

Expedient Equity Sdn. Bhd. is a local venture capital management company established under the first MAVCAP Outsource Partner Program managing RM25.0 million. Strategically located in Selangor and Penang, the investment focus is primarily directed towards early stage to late stage life sciences and ICT opportunities in Malaysia. To date, Expedient has fully invested the fund into 10 companies (5 life sciences companies and 5 ICT based companies)

Expedient Equity Ventures Sdn. Bhd.

Expedient Equity Ventures Sdn Bhd was incorporated in July 2007, pursuant to the Second Mavcap Outsource Partners Program (OSP-2) in a move to further grow Malaysia’s venture capital (VC) industry.

The principal objective of the company is to operate as a venture capital holding company to achieve an above average medium to long-term capital appreciation over the term of its charter life (8 years) by a combination of careful selection of investment opportunities and where applicable , active assistance to the management of the Investee Companies.

The total fund size of the Fund is RM30.3 million and it will be investing primarily in emerging growth companies within the ICT sector in Malaysia and in the region.

a. ) Malaysia Venture Capital Management Berhad (MAVCAP)
b. ) PKNK Entrepreneur Development Sdn Bhd
PKNK Entrepreneur Development Sdn Bhd is a subsidiary of the The Kedah Economic Development Corporation or Perbadanan Kemajuan Negeri Kedah (PKNK).
c. ) Expedient Equity Two Sdn Bhd
d. ) The Manager (Individuals)

Comprised mainly the management team of Expedient Equity Two Sdn Bhd, the Manager for Expedient Equity Ventures Sdn Bhd

Expedient Equity Two Sdn. Bhd. (The Manager)

The Manager is backed by a team of experienced professionals with complementary expertise from venture capital, financial services as well as technical background. Besides successfully managing the first fund of RM25 mil under MAVCAP’s Outsource Program, the Partners/Founders namely Mohamed Daniel and Jason Ng both have more than 35 years of cumulative experience within the financial services and venture capital industry, Mohamed Daniel having worked with one of the largest banks in Malaysia while Jason Ng was with several regional venture capital firms based in Malaysia.

FirstFloor Capital Sdn Bhd

FirstFloor Capital manages both private and institutional funds and has invested in technology companies ranging from Nutraceuticals to Artificial Intelligence and in stages ranging from seed to pre-mezzanine. Unlike many other Malaysian VC firms, FirstFloor Capital is partner run and owned.

FirstFloor Capital’s team members are pioneers in their respective fields and have been involved in advising and developing technology businesses as well as raising funds for start-ups and mid-sized ventures since 1996.

FirstFloor Capital’s investment style is non-intrusive since we look for investee companies that are driven by entrepreneurs who know their business, are smart, passionately driven, and know that to succeed, they must understand and embrace the ever shifting technologies and markets.

Combined with FirstFloor Capital’s unique insight into new business paradigms and through its own capital, and that of its investor network, these ventures are allowed to bloom to their fullest potential.

To facilitate the funding of these High Growth tech-ventures, FirstFloor Capital is involved in managing several funds for various High-networth Investors and Institutions (Funds).

Approach

Technology Investing is not merely about understanding the technical workings of a technology, but being able to understand the broader context of how this technology can be monetised and turned into a value creation agent––it is about understanding the eco-system of the technology and its position vis-à-vis other competitive and complementary technologies.

In the ten years we have been involved in technology investing, we have found four important elements of a successful technology investment.

1. Commercial Relevance
2. Execution
3. Competitive Sustainability
4. Technology Life-cycle

Commercial Relevance: A technology should provide a revolutionary value creation.
Improvements should be in multiples and not incremental percentages. For example, a performance improvement of reducing a task-time from 3 days to 2 days would barely qualify for commercial relevance versus a technology that reduced task times from 3 days to 3 hours. Price reductions should be from $10 to $1 not $10 to $9.

In addition, the technology should address a real need with commercial value and not necessarily a whimsical nice-to-have.

Execution: The speed and ease of execution is perhaps an often underestimated aspect of a technology. How long is the turn-around time of the technology? Some biotech initiatives take several years to yield results, while a software project can produce results in months. What resources and raw materials are required for the technology, and what is their availability and cost? Are there any bottlenecks in the execution of delivery?

Competitive Sustainability: Some technologies are notoriously easy to duplicate and can generate copy cats in no time. An attractive technology should not only be proprietary but in practice should be competitive over long periods of time. Proprietary positions need not be based on patents or legal barriers. Other barriers can include proprietary control of necessary resources.

The key to mantaining sustainability is also continuous R&D, and being in a techonology that has a continuous growth trajectory. Moore’s law for example states that the number of transistors on an integrated circuit for minimum component cost doubles every 24 months. Having a technology that can simultaneously ride Moore’s law can also lead to sustainable growth.

Technology Life-Cycle: The Hype curve, first introduced by the Gartner Group, tracks technology life cycles. An embryonic technology carries higher risks but greater opportunities for value growth, while a more mature technology, while having a lower risk profile, may often yield lacklustre growth in value. Knowing when to invest and when to exit is both an art and a skill developed over time.

What type of companies does the FirstFloor Capital invest in?

We invest mainly in high-growth and technology companies with a significant market share in the industry.

FirstFloor Capital will consider all technologies including those from the following industries, Information Technology, Energy Industry, Services Industry, Communications Industry and Life Science Industry.

How long does the decision to invest take?

Provided that we receive sufficient information, the preliminary decision to invest in principle may take about 10 days and will be subject to parameters such as pricing, due diligence and other investment terms.

What is the maximum investment amount per company?

FirstFloor Capital’s funds generally invests between RM1 million and RM6 million, per investment and as little as RM10,000 for Angel type investments.

How much equity will FirstFloor Capital take per investment?

Depending on the company’s valuation, our funds may take up to a maximum of 49% equity. The typical investment size is RM5 million.

What does “high growth” and “technology” mean?

“Technology” has been interpreted in the broadest context and is not necessarily limited to Information Technology or Biotechnology but other forms of technology as well ranging from services to manufacturing. Technology is any mechanism or process that eventually improves the quality of life in a significant manner.

In true technological innovation, improvement in quality creates Value-add in Multiples and not in marginal increments. Companies in industries that promote new technology in high-growth markets will have significant advantage. “High Growth” companies are defined as companies whose values increase at least 20% to 30% per annum.

Hadrons Capital Partners Sdn Bhd

Leveraging on the aggregate experience of its managers, Hadrons Capital has developed a unique investment framework to better understand the dynamics of both macroeconomics of global trends and microeconomics of operating enterprises. Hadrons has developed competitive skills to identify undervalued companies with sustainable growth potentials spanning across a wide arrays of industries.

We focus on listed companies that are uniquely positioned to capture the multi-year secular boom in emerging Asia, especially China. Our detailed analysis shows that the shift from the West to the East, led by China, has entered an exciting and transformational period.

While this opens up tremendous opportunities for fund managers to invest in high-growth companies, the return of superior profits is not going to be taken for granted. It requires constant monitoring and timely execution of an active strategy that responds to short-term market dislocations.

With our excellent grasp of economic fundamentals – both macro and micro – and more than 20 years of experience in the Asian markets, we are committed to build on this foundation to achieve superior investment returns for investors.

www.hadronscapital.com

Ispring Capital

iSpring Capital is a pan Malaysia – Singapore business accelerator focusing on the new economy. We bring an innovative and fresh concept to emerging technopreneurs, providing both financial and intellectual capital.

Our Fund

iSpring Venture Management is the fund manager for Mavcap Technology Sdn Bhd, which was incorporated by MAVCAP as a venture capital investment holding company. Mavcap Technology has a charter life expiring at the end of 2010. MAVCAP is the sole investor and has committed to invest up to RM25 million.

Our objective is to achieve medium to long term capital gain through investing in promising technology companies at various stages with growth potential primarily in Malaysia but also elsewhere. We define technology broadly as companies involved in Electronics, ICT, Internet, Semiconductor, Telecom and Networking and Medical and Health. In particular, our area of focus is in Wireless and eCommerce.

Our investment size will range from RM500,000 to RM3.7 million though we have the ability to invest larger amounts together with other investors.

Our Investment Criteria

Our objective is to achieve above average capital appreciation over the period of our investment. We generally look for 3 qualities in our prospective portfolio companies.

Management Team: We will only invest if we share the management team’s business philosophy, values and goals. We look for track record and ability to execute but most of all, we place a premium on integrity, professionalism and commitment.

Business Model: We like clever ideas or technology but will only invest in viable business models that can generate superior and sustainable returns. In our experience, companies that can achieve this will have some or all of the following: product/service differentiation, compelling customer value proposition, large market opportunity with potential for greater than average profitability, sustainable competitive advantage and barriers to entry and/or exit.

Potential Returns/Exit: As we derive our returns from the eventual divestment of shares in the companies we invest in, we will need to be convinced of the potential for exit opportunities such as an initial public offering (“IPO”) or trade sale.

Our Investment Process

Upon receiving your business plan, we will determine if the investment opportunity potentially meets our investment criteria. If we like your proposal, we will arrange to meet with the management team and listen to your presentation. If we decide to proceed further, we will commence initial due diligence. This process may take anything from 4 to 8 weeks depending on how quickly we get the information we require or need to get comfortable. During this period, we spend time understanding the business and also getting to know management. Equally as important, it is also an opportunity for management to get know us.

If our due diligence is positive and we decide to proceed, we will give you a Term Sheet setting out the terms of our investment. Once you have accepted this, we will commence with detailed due diligence which will normally include a financial, legal and sometimes a technology audit. Simultaneously, we will commence with the preparation of legal documentation. This process will take about 4 to 5 weeks at the end of which, if the results of our due diligence are satisfactory, we will complete our investment.

A typical venture capital investment process will take about 3 –4 months, possibly longer but unlikely to be shorter. It therefore involves a lot of time, effort and expense from all parties and at any stage, for a variety of reasons, the venture capital firm may decide not proceed further. We therefore spend time early in the process making sure you clearly understand our process, role and expectations as an investor and potential ‘deal breakers’.

Intelligent Capital Sdn Bhd

Intelligent Capital is a pioneer Malaysian private equity and venture capital investor. Established in 2000, it is the first Malaysian private equity and venture capital firm that successfully raised 100% of its funds from private individuals and corporations.

Focus

Intelligent Capital invest in companies in the Asia-Pacific Region that require growth capital to adopt new technology or companies that can take advantage of industries that are consolidating. We seldom provide seed funding and typically invests in both early and later stage companies. In order to bring greater understanding, experience and contribution to Intelligent Capital’s portfolio companies we focus exclusively on 3 sectors;

Advanced Manufacturing | Communications | Outsourced and Transition Services

By focusing, we believe we can contribute more deeply to the development of winning companies. Our contributions extend well beyond financing and include strategic guidance, recruiting business development and partnering.

Venture Development & Partnering

Relationships with the right strategic partners are critical to a new or growing company’s success. Intelligent Capital’s focused experience and network allows us to contribute substantially to this dimension of our portfolio’s companies’ development.

Commitment to Winning

Intelligent Capital’s relationship with the Entrepreneur is built on a shared commitment to excellence, a common culture that has led to an unusually high proportion of successful ventures in established venture firms. Indeed, a major source our satisfaction is our working relationship with Entrepreneurs who have the character and ambition needed to build world-class companies.

How We Invest

Our unique approach is our integrated, research-driven approach which is supported by top investment professionals. We achieve broad domain expertise by combining a private company focus with public equity analysis. Relative to traditional approaches, this approach enables Intelligent Capital to add unique value as an investor through;

Superior industry expertise
Broader and deeper network of industry contacts
Deeper understanding of institutional investor community
A longer-term perspective on company development – well beyond IPO

Frequently, we are the lead investor to our portfolio companies. In some cases we are the sole venture investor or we may join other venture capital firms, corporate partners and/or founding investors.

Deep Portfolio Company Involvement

Intelligent Capital brings expertise in technical, managerial and strategic issues directly through our investment professionals. These include Principals and Analysts with years of experience, technology partners with specialized knowledge and Advisors with backgrounds that orient them to helping to build portfolio companies rather than chasing the next deal.

We help companies establish highly profitable leadership positions in growing markets. Intelligent Capital works closely with its portfolio companies in many areas including;

Business model
Strategy
Recruitment
Sales and marketing
Corporate development

We build relationships between portfolio companies with their customers, partners and analysts. We welcome lively and challenging discussions throughout and beyond the whole of the investment lifecycle.

Typical Instruments

Typical Intelligent Capital investments will take the form of the following instruments;

Convertible preferred shares
Convertible debt

Timeframe Of Investments

Typically, we seek to exit an investment within 5-7 years of our initial investment. However, that does not mean that we take a short-term view of investments. Our approach is to help build companies and any exit strategy will always take that perspective into consideration.

Exit Strategy

Our major emphasis is on capital gains. We seek capital gains through the sale or public offering of the portfolio company.

www.intelligentvc.com


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