Kuala Lumpur, 24 November 99 (MSC Times)-:3Capital.com Sdn Bhd, which matchmakes capital with creativity, is organizing a tour and dialogue for venture capitalists and investors to promote internet, IT, telecoms and high-tech investments in Malaysia.
Chief executive Sivapalan Vivekarajah tells MSC Times.com the major VC firms and private investment firms, both local and foreign, participating in the dialogue planned for Nov 30, 1999 will include:
- Morgan Stanley Dean Witter (Singapore)
- ING Barings (Hong Kong)
- Citicorp Capital Sdn Bhd
- BI Walden Management Sdn Bhd
- AsiaTech Ventures (Singapore)
- eGlobal Technology Services (Singapore and Malaysia)
- Harry Elias Partnership (Singapore)
- SP Setia Bhd
- JC Consultants ("angel" investor)
- Bumiputera & Technology Venture Capital Bhd
- DTA Capital Partners Sdn Bhd
- MTDC Capital & Technology
- MSC Venture Corporation Sdn Bhd
- Technology Park Malaysia Venture Capital
The tour will cover Multimedia Development Corporation (MDC), which manages the Multimedia Super Corridor (MSC); MSC Venture Corporation; MSC Central Incubator which houses internet and IT startups; MTDC Incubator, home to high-tech and bio-tech companies; and Putrajaya.
There'll also be presentations by MDC on MSC initiatives, MSC Central Incubator and MTDC Incubator on development programs for startups and high-tech companies respectively, and MESDAQ on the capital market and listing procedures on the country's second stock exchange for high growth companies.
In addition, there'll be presentations by two successful MSC-status internet companies - online service provider Viable Net Solutions Sdn Bhd and Media Shoppe Sdn Bhd.
3Capital.com has planned for a VC-Technopreneur cocktail on the evening of Nov 30 at Renaissance Hotel in Kuala Lumpur for VCs, investors and technopreneurs to network. It's sponsored by Microsoft Malaysia and MTDC.
Sivapalan says VCs and angel investors are an excellent source of funds, yet few technopreneurs in the country have the opportunity to meet them in an informal atmosphere.
The cocktail will thus be a great avenue for them to build relationships that may lead to long term investments and other business alliances.
He says VCs and investors will benefit by having face-to-face discussions with Malaysian entrepreneurs, learn about the many opportunities in the country, source potential investments, and network with other investors in Malaysia.
For technopreneurs, they can discuss their projects and ideas and source financing as well as joint venture partners.
3Capital.com is the first and only Asian internet company that offers VC matching service for internet and high-tech entrepreneurs and investors in the region.
It also offers total business assistance programs by providing entrepreneurs with consultancy in corporate, marketing and promotion strategies; trademark, servicemark and patent registration; training in entrepreneurship; and corporate services.
"3Capital's VC matching service is crucial because if offers not only funding for growth companies but also the right type of funds and investors-partners," Sivapalan adds. "Having the appropriate partner can make the difference between success and failure."
On the funding aspect, he says 3Capital.com will help a company by getting funds, usually in the form of VC, for its venture.
But if you've an innovative product or patent, there may be funds in the form of R&D grants, and if you qualify, 3Capital.com will help you obtain such grants.
On VC, he says 3Capital.com will introduce you to no more than three potential VC partners. Once there's an indication of interest, it'll matchmake you with a VC partner and allow you to negotiate terms in private. It'll only give advice or assistance if required.
In terms of documentation, where necessary, 3Capital.com will assist the entrepreneur in drawing up the executive summary as well as business and financial plans for presentation to the VC partner or R&D funding organization.
3Capital.com's cost of service is "success-based", meaning that if it's not successful in getting funds for you, you pay the company only a nominal fee plus disbursements.
Sivapalan notes that by being 3Capital's smart partner, you can also source for ventures in Malaysia, Singapore and other Asean countries, supported by its local presence as well as its directors' 20 years of corporate experience and exposure.
Procedure-wise, 3Capital.com will do an initial screening and due diligence on the company and entrepreneur seeking VC to save him time and to make sure that the venture is commercially viable.
On requisites of a successful company, Sivapalan says that while they include a brilliant idea, an innovative product and a great website, these alone won't make a company commercially viable or successful.
"Even the greatest of ideas or products will be worth nothing until they're produced, marketed and sold at a profit."
"There must be a total and effective strategy. Often, failed e-commerce ventures aren't due to technical problems but to absence of an effective strategy."
For instance, he explains, whatever product or service on offer will have to be tailored for the global market and meeting global competition.
World Trade Organization (WTO) policies will mean reduced protectionism, tariffs and barriers to trade. Hence, global marketing is vital, not mere marketing.