By Dr. Wilton Chau Managing Partner QLeap Venture Fund Adjunct Professor, CUHK Professor Wilton Chau 1 CUHK

 Over 24 years experience in venture capital and direct investment industry  Managing Partner in QLeap Venture Fund  Investment committee member of SHC Capital (insurance company listed in Singapore)  Director of Guangzhen Rail Co. Ltd., listed in New York, Shanghai and Hong Kong  Director of several unlisted companies invested by QLeap Venture Fund  Lead Consultant – Incubation Program, HK Sci Park  Adjunct Professor & Pro-doc Fellow of the Centre of Entrepreneurship, CUHK Professor Wilton Chau 2 CUHK

 Buy side: 24 years  Sell side: 10 years  Successful fund raising: 5 cases (pre-revenue)  1 project per 2 years  amount: HK$ 1 – 40 million Professor Wilton Chau 3 CUHK

 Seed  Own savings  Family, friends and fools  Government  Application Research  Research institution (universities, ASTRI)  Own savings  Government (SERAP, HKSTP)  Angels CUHK Professor Wilton Chau 4

 Start-up  Own money  Government  Angels  Early stage  Angels  VCs  Industrial partners CUHK Professor Wilton Chau 5

1. A valid business model 2. An executable business plan 3. Investment proposals 4. Powerful presentations 5. Q&A 6. DD files 7. ??? Professor Wilton Chau 6 CUHK

 A feasible one?  A scalable one?  Require change in infrastructure?  A high growth one?  A proven model?  How to prove the model at the beginning? Professor Wilton Chau 7 CUHK

 Vision vs Imagination  Big enough?  Clear?  Direction?  Identified risks & hurdles  Come with solutions?  Limited resources, limited time out-sourcing  Betrayal - financial projections Professor Wilton Chau 8 CUHK

 A marketing document (20 pages)  Tailor-made to each investor (the buyer)  Must have an OFFER  How much are you raising?  What is the stake being offered?  Other terms (a term sheet)  Exit strategy  Functions of time-line  Differences between IM / BP / IP  An outstanding one! Professor Wilton Chau 9 CUHK

 In line with the investment proposal  10 – 20 minutes ppt  Flow along the theme(s)  Prototype  Skills  Serial position effect Storytelling Professor Wilton Chau 10 CUHK

 Very important to inexperience team  Not related to Gaps setting  First page: list of questions in groups  Completed answers to all expected questions  as detail as possible, no restriction on length  don’t refer to other materials unless necessary except to particular documents in DD files for proof  Can be part of the Investment Proposal  Problem: only experienced people can tell  Gap setting Professor Wilton Chau 11 CUHK

 Organized in the following sections:  Legal (including patents & technology)  Financials Assumptions & their justifications Past financial statements (audited*)  Contracts  Milestones and achievements  Numbers the key documents Professor Wilton Chau 12 CUHK

In terms of a successful fund raising  Items 1 to 6 contribute one third  Item 7 contributes another one third --- Thank you! --- Professor Wilton Chau 13 CUHK