Embed Size (px)
Citation preview
MAVCAP’s Perspective in Financing Green Technology Deals
• What is Green Technology?
• Evolving Landscape & Opportunities
• Challenges
• Key Considerations
• Funding Gap
• MAVCAP
Contents
Green Technology ?
Green Technology is the development and application of products, equipment and systems used to conserve the natural environment and resources, which minimize and reduces the negative impact of human activities.
By Ministry of Energy, Green Technology and Water
Green Technology ?
Four Pillars Of Green Technology Policy• Energy
• Environment
• Economy
• Social
• Seek to attain energy independence and promote efficient utilization;
• Conserve and minimize the impact on the environment;
• Enhance the national economic development through the use of technology; and
• Improve the quality of life for all.
Why?... How?...
• Environmental issues ie depleting natural resources, disasters and etc
• Evolving environmental policies ie EU in creating a carbon market
• Rapid rise in commodity prices esp. in Asia
• Green wave propagated by mainstream business publications
Evolving Landscape and Opportunities
Business Owners/Promoters …
• Incomplete eco system• R&D facilities• Rapid change in technology• Time to market• Competition esp. from established
conglomerates• Familiarity• Government support and policies
Challenges
• Value proposition and position in the value network
• Business model• Technology roadmap• Market and growth strategy• Financial and valuation• Funding and utilisation• Exit strategy• Management
Key Considerations
Value proposition
Key Considerations
Position in the value network
Business model
Key Considerations
Technology roadmap
Key Considerations
Market and growth strategy
Key Considerations
Financial and valuation
• Historical - revenue, profitability and cash? • forecast & projections (trend alignment or
setter?)
• Valuation ???
Key Considerations
Funding and utilisation
• How much is enough?
• How is it being used?
Key Considerations
Exit strategy
• IPO?• Trade sale?• Buyback?
Key Considerations
Management
• Honesty & Integrity• Expertise / Focus• Experience• Motivation• Commitment• High level of energy
Key Considerations
Funding Gap
LeveragingOr
Other forms of financing
EquitySize, tenure and nature of project
• Founded in 2001• Largest Malaysian Government VC arm focusing
on ICT/high growth tech sectors (ex biotech)• Early to late stage investor• Fund under management: RM970 million • Typical investment size: up to RM 22 million• Largest number of VC professionals• 128 portfolio companies (73 (direct) & 55 (OSP))
MAVCAP
1. Provide an alternative source of risk capital to companies in the ICT and high-growth areas;
2. Provide entrepreneurs with the ability to create new wealth in the K-economy; and
3. Drive the development of the local venture capital industry
STRATEGIC GOVERNMENT MANDATE
• High growth private companies• ICT, clean/green tech and technology related• Malaysian angle • Minority stake with board seat• Investment horizon – 3 to 5 years• Exit option - buyback, IPO, trade sale
INVESTMENT MANDATE
Mar
ket
Exp
ansi
on
Pro
duct
Exp
an
sio
n
List
ing
or
Sa
le
Com
mer
cial
izat
ion TIME
Con
cept
Alp
ha
Bet
a
Ea
rly
Ado
pter
FUNDING
AMOUNT C
o F
orm
atio
n
3-6 months
12-24 months24-60 months
VC FUNDING CYCLE
INVESTMENT SECTORS
