Goutama Bachtiar

Investment Advisor, Global Innovations and Technology Platform

ASEAN-JIF, 14 June 2013

Angel Investor’s View on ASEAN Common Fund for Startup

About Us

• A Singapore-based Corporate Angel Investor invests in Startup & Seed companies in China, India, Singapore, Indonesia, Vietnam and other Asian countries

• Part of Rutledge Vine Capital focusing on global investments

Our Team• Driven by a high caliber force with a combined experience of over 80 years in Senior Management positions

• Have extensive ventures in diverse sectors spanned across IT, Mobile, Gaming, Digital Media, Hospitality, Real Estate, Consumer Marketing, Oil & Gas, Commodities spaces

What We Do• Invested in technology companies in various stages of development

• Look for more startup by working with entrepreneurs who have innovative ideas and a need for capital to move to the next stage

• Our initial funding between US$100K and US$300K

• Follow-on funding of US$500K and above at the later stages

Our Investment Philosophy• ‘High Risk-High Return’ portfolio• Partnerships with other Angels and Incubators for co-investment and cross-pollination of ideas

• A minority ownership (10 to 25 percent) within the investee

• Advice, Mentorship and Network• No interference in day-to-day investee’s management activities

Our Investment SectorsInformation Technology

Our Investment Sectors (cont’d) Medical Technology

Our Investment Sectors (cont’d) Eco-Energy

Our Investment Criteria• Differentiation: unique, first-of-a-kind and new ideas, proven and verifiable

• Substance: Team, Competitive Advantage, Monetization, Intellectual Property

• Market: large target market, first mover (Blue Ocean)

• Traction: Working Product, Sales and Customers, Strategic Partners, Letter-of-Intent

• Valuation: Rational, Realistic, Reasonable

Our Funding Stages

Our Portfolios

Our Funding Process

Our Co-Investment Process

Rehearsing Common Fund Term• A form of collective investment scheme

• Based on contractual law• Managed as a single portfolio with individual beneficiaries receiving returns proportionately

• Property is managed as a whole by or on behalf of the operator of the scheme

• Contributions, profits, payments, income are to be made to them are pooled

Latest News Common Fund Scene for Startup

Injected by New York State Common Retirement Fund (NYSCRF)

Third largest pension fund in the country funded two startups Movable Ink and Truveris through Tribeca Venture Partners

Moveable Ink: Let users serve up dynamic live content in their email

Truveris: a software company helping customer with pharmacy costs

Common Fund Advantages

• Co-incubation and Co-Investment

• Mentors and Experts• Best Practice Model• Information and Database• Training for investment manager, start-up companies

• Reduction in investment risk by diversification

Common Fund Advantages (cont’d)• Economies of scale and operational efficiencies

• Resulted in a lower cost base for the investment manager

• Tax efficient• Administratively simple• Strengthening country/entities coordination

• Reduction in investment risk by diversification

Common Fund Advantages (cont’d)

• The more diversified our capital, the lower capital risk

• Indirectly reduced currency risk

• Systematic risk avoidance by investment in different non-perfectly-correlated asset

• Reduced dealing costs

Common Fund Advantages (cont’d)

• Simplified fund structure rather than having a number of fund structures

• Enhance accountability to entities involves through a greater transparency with more disclosure of information

• Accelerate trust and credentials attainment

• Gain more publications Attract more investees

Financial Services Would Like to Know

• The legal status of the entity• The place in which the firm and/or its head office is located

• The ownership of the firm and/or any relevant group structure

• The firm's resources• Whether the firm is fit and proper (i.e. meets criteria as to honesty, competency and financial soundness)

Things to Consider• CostsFund manager cost and expense in fixed or variable percentage

• Lack of choiceInvestor will often have none of the rights connected with individual investments within the fund

• Lack of owner’s rightInvestor could choose type of fund to invest in, but no control over the choice of individual holdings that make up the fund

Common Fund Challenges

• Keeping it lean• Communication should be strengthening

• Agreed method and common view of risk management, due diligence, valuation, capital injection

• Dispute whenever happened and accommodated in the agreement

Common Fund Challenges (cont’d)

• Regulatory compliance to minimized compliance risk (law and scheme) including ownership

• Complying with Financial Services Authority

• Compromising within any other interests

Thank You!