#SUMHK March 5: Transitioning from a Bootstrapped Niche to Venture Backed Success

Most startups want to raise capital, but what about what happens after you do? Unfortunately there are fewer guides and talks about what to do after you raised the money and have to transition to a venture backed success.

Hear about the exciting adventure of Telerik, a successful developer tools vendor, that started as a small niche player in the European backwaters. Learn how they raised venture capital from a prominent firm and grew from a tiny company working in a small warehouse to 500 employees with offices in seven countries. See how the founders had to learn on the fly, particularly when acquiring companies and entering new markets. Telerik has started the difficult process of transitioning from the start-up phase to building a “real” company eyeing an eventual IPO. Learn from all of our mistakes! The story will be told by Stephen Forte, Telerik’s Chief Strategy Officer and Richard Campbell, a member of the board. 

The meeting will be held at BootHK, 19/f, 231 Queen’s Road East at 7:30pm.

Sept 30: ‘The 5 P’s to Finding Capital and Attracting Investors to Your Business’ — Business Exchange Club

Thursday 30th September

Imagine where you could take your business with some extra investment. You could hire new sales staff, get an assistant, move into bigger and more prestigious premises and not need to worry about cashflow stifling or even killing your growth. You could do bigger deals with bigger companies and assure yourself a bright future.

Raising funds is one of the major challenges entrepreneurs face in building a successful business. Hong Kong is a financial centre with an abundance of capital and financing so you would expect that investors would be quite willing to invest in new businesses. Unfortunately, the reality of the situation is that in a country where 98% of all businesses are SME’s, there are few methods of matching the right company with the right type of investor, especially for smaller businesses. In fact, just 1 in 10 business proposals will end up receiving funding from angel investors. This has a lot to do with how those ideas are presented to the investors.

Our two speakers will offer a step-by-step approach on how to fund-raise for small businesses, how to find and pitch to investors and finally how to close the deal.

This Thursday the 30th, Tony from AP Dealflow is doing this lunch seminar. As an added bonus, there is special pricing for StartupsHK members, check the Google Group for more details.

Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s) « Steve Blank

Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you.

Here’s why.

The Golden Age for Entrepreneurs and VC’s
The two decades from 1979 when pension funds fueled the expansion of venture capital to 2000 when the dot-com bubble burst were the Golden Age for entrepreneurs and venture capital firms. VC’s were making investments every other financially prudent institution wouldn’t touch – and they were printing money.

The system worked in predictable and profitable ways. VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Most of the startups they invested in either died by running out of money before they found a scalable business model or ended up in the “land of the living dead” by never growing (failing to Pivot.)

Startup lifecycle in an IPO Market

Another well thought out post by Steve Blank. One question, though, would this apply to local markets as well as more established markets within the US. It seems like the rules may not be consistent between these.