2. 2
6XXXX
Douglas Abrams
About the facilitator
• Wharton MBA
• JP Morgan – Vice President
IB Technology, GM Internet Marketing
• Parallax Capital Mgmt – Co-founder and MD
Private Equity
• Extream Ventures – Co-founder and MD
S$20 million seed fund
• Expara – Founder and MD
IDM Ventures Incubator, advisory, training
• NUS – Adjunct Associate Professor, Business
School, Entrepreneurship, Sasin – Visiting
Professor, Venture Capital
3. 3
6XXXX
Douglas Abrams
Creative destruction
• Innovative entrepreneurs drive
long-term macroeconomic
performance
• Long-run economic growth
• Economic fluctuations
• Structural adjustment
• Accounts for over 50% of
productivity growth
4. 4
6XXXX
Douglas Abrams
Development of a thriving entrepreneurial sector
• Not just an economic "nice-
to-have"
• In the knowledge-and
innovation-driven globalized
economy of the 21st century
• It is a competitive necessity
5. 5
6XXXX
Douglas Abrams
Impact of VC-funded companies on econony
• US companies receiving VC from 1970-2005 accounted for 10
million jobs and $2.1 trillion revenue in 2005
• 9% of total private sector workforce and 16.6% of total GDP
• Job growth rate of 4.1% vs 1.3% and sales 11.3% vs 8.5%
6. 6
6XXXX
Douglas Abrams
Companies founded by MIT grads
• 25,800 active companies
• Employing 3.3 million people
• Generating annual revenues of $2
trillion
• Singapore: $307 billion; Thailand
$373 billion; Vietnam $186 billion
• Equivalent to the 11th largest
economy in the world
7. 7
6XXXX
Douglas Abrams
Innovation and Entrepreneurship
• Why countries need innovative entrepreneurship
• Driving innovative entrepreneurship: enterprise ecosystems
• The key players
• Singapore enterprise ecosystem
• Outlook for Thailand’s enterprise ecosystem
8. 8
6XXXX
Douglas Abrams
Innovation and ecosystems
• Coral reefs – 10% of earth’s surface;
25% of known species
• Cities 10x larger than neighbor are
17x more innovative
• Residents of city of 5MM are 3x more
innovative than resident of town of
100K
10. 10
6XXXX
Douglas Abrams
Participants in enterprise ecosystems
Enterprise
ecosystem
RIs
IHLs
Entre
Govt
Accel
Incub
Angels
VCs
Mentors
Industry
Capital
markets
11. 11
6XXXX
Douglas Abrams
Who are the players?
• Entrepreneurs
– Lifestyle entrepreneurs
– High-growth entrepreneurs
(scalable business)
• Venture investors
– Venture capitalists (VCs)
– Angel investors
– Corporate VCs and investors
– Banks
– Government
12. 12
6XXXX
Douglas Abrams
What roles do they play?
Identify opportunities
Provide funding
Oversee finances
Assist with growth
Generate returns for themselves or
their investors
Venture investors
• Create opportunities
• Raise funding
• Manage finances
• Increase value
• Generate returns for investors
Entrepreneurs
13. 13
6XXXX
Douglas Abrams
Small versus scalable business
• Small business: limited scope,
complication and risk. Slow
growth.
• Scalable business: significant
scope, complication, and risk.
Rapid growth.
14. 14
6XXXX
Douglas Abrams
Why do companies raise investment?
• Lifestyle or scalable?
• Paycheck or payout?
• A big piece of a small pie?
• A small piece of a big pie?
Founder
Investors
Investors
Founder
15. 15
6XXXX
Douglas Abrams
Stages and sources of funds
Founder’s
Capital
Seed/
Angel
Series
A, B, C
Mezzanine Pre-IPO IPO
VC hurdle rates 60-100% 40-60% 20% Why are these rates so high?
OM
F,F&F
Incubators
corporations
government
Customers, suppliers,
strategic partners
VCs, Banks for VC loans
16. 16
6XXXX
Douglas Abrams
Why do investors invest in venture capital?
As of June 30, 2014. The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,508 U.S. venture capital funds (963
early stage, 165 late & expansion stage, 374 multi-stage and 6 venture debt funds), including fully liquidated partnerships, formed between 1981 and 2014. (1)Pooled end-to-end
return, net of fees, expenses, and carried interest.(2) 2007-2015 Sources: Cambridge Associates LLC, Barclays, Dow Jones Indexes, Frank Russell Company, Standard & Poor's,
Thomson Reuters Datastream, and Wilshire Associates, Inc
Case Shiller Real Estate Index 4.1
Expara IDM Ventures (2) 43.03
20. 20
6XXXX
Douglas Abrams
Strengths of Singapore’s enterprise ecosystem
• Public policies promoting entrepreneurship and venture capital
• Public policies supporting the venture capital industry
• A business friendly environment
• Strong IP protection regime and corporate governance
• Strategic location in Asia
22. 22
6XXXX
Douglas Abrams
SEA deal flow pipeline is full
S$90MM invested in Singapore seed stage in 2013 alone
Deals Amt (USD MM) Population GDP (USD B)
Total SG 264 71.8 5.312 274
Total US 908 361.4 314 15000
SG / US 29% 20% 1.7% 1.8%
[1] Crunchbase Jan 2014, Wall Street Journal Feb 2014
24. 24
6XXXX
Douglas Abrams
US and Singapore public sector VC
• The US federal government alone invests as much in small
businesses as total VC investment through SBA/SBIR
• Federal contracts to small businesses dwarf total VC investment
• Start-ups are also funded at state and local levels
• Both US and Singapore invest about 1% of GDP into programs
supporting start-ups and small businesses
25. 25
6XXXX
Douglas Abrams
Contact us
• Douglas Abrams
• Expara
– dka@expara.com
– www.expara.com
• You can also contact me on:
– Facebook, Linked-In, Line,
Whatsapp, WeChat
• Singapore mobile: 65-9780-5381
Singapore HQ
Block 71 Ayer Rajah Crescent
#$02-10/11 S139951
Regional offices: Bangkok,
KL, HCM, Tokyo