International venture capital

[dazdaz]

Does it exist?  Are they willing to back your ventures in South East Asia?  I know little at present on this topic, but am willing to learn.

Would say, an American venture capital firm slap down some big bucks on a good business plan in South East Asia, or say the risk factor on their return is too high?

How about venture capitalists in Thailand from some of the larger instituions.

Interestings thoughts ...  

Anyone point me in any direction on this, i'd be grateful.

Thanks

[simon43]

OK - No Venture Capitalist will risk his money on any business that only exists on paper!  Gone are the days of dot-com when these guys threw money around at the slightest whiff of a decent idea.

Whether your business idea is internet-related or not, and regardless of geographical location, you will find it extremely hard to find anybody willing to risk their money unless you can minimise their risk.  And that usually means actually operating the business and demonstrating the returns on investment etc.

It's a bit of a catch-22 situation, if you need their money to start the business.  But think of it from their viewpoint.  they get hundreds of so-called brilliant business plans sent to them. Why should your idea be the killer that makes them reach for their wallets.

Sorry to sound hard, but I'm trying to be realistic here. I wouldn't want you to spend time and effort chasing money that is likely not to be forthcoming.

Simon

[dazdaz]

If hard is realistic, then please be harder.

So how to make the first move?  I wonder if Hong Kong/Singapore may be better to approach due to locality.  There is obviously a knack to writing a business plan that wets a VC's appetite, call it good marketing and experience.

Is there anywhere on the web I can goto and learn more on this topic?

Still hav'nt found a good source on Asian business on the web.  As Asian business portal with a forum such as this would be incredibly useful to pool collective knowledge.   I think the face concept will go against most Asian business owners speaking their mind and a sense of what I know is my own, will stop it.  I could be wrong however ...

[simon43]

Well - realistic, not hard....Venture Capitalists want to invest in businesses that will generate them a reasonable return on their investment. And most VCs tend to rely on this new business venture to provide the expertise and knowledge of their market to convince the VC to part with their money.  And to convince a VC is very difficult if there is no proven return or operating history. (Many of them got their fingers burnt in the dot-com era...)

Is there no way that you can launch this venture without VC funding - and then get some operating months under your belt?  Or is it something that requires 'all or nothing'.

I don't know of any VC sites specific to Asia, but I do think their attitude will be the same as European VCs - 'Show us the money before we give you more money!'

Simon

[dazdaz]

Yes, if I can get some "coprorate lending" at an extortionate interest rate for farang run business, then it will get the wheel turning.

The dot-com boom is an interesting learning experience, because having gone through it, your foundation is stronger next time.

Whoever writes a decent, business guide to Thailand will become rich!  It's almost like knowing the secret to a magic trick, once you know how the rabbit's pulled out of the hat, everyone wants a go.

Regards

[simon43]

Maybe you should try to find a VC within the business sector that you intend to operate within.  They should understand your business better than mainstream VCs.

How much money do you need?  The amount will determine whether you should be seeking a VC or business angels.  It can be easier to get investment from several business angels rather than a single corporate VC.

And of course, you need a business plan which shows why you need the amount of money that you are seeking, so its not just a question of picking a figure and adding a few noughts!

There are some websites which, for a small fee ($50), will generate a complete business plan (or other documents) for you, complete with all the nice words etc.  But to use these you must have all your figures already calculated, so you can just drop them into the website form and - hey presto - there is your business plan.

Actually, their plans do look ok and are probably not a rip-off, but you need to have your figures right before you start.

Anyway - everyone on this forum is dying to know just exactly what your brilliant business idea is! Go on tell all - you can trust me!!!  

[dazdaz]

There are several things i'd like to do, and these are nothing more than long term ideas at present, several of which are computer service related, of course to go into details at this stage would'nt be a good idea.

I don't like forecasting, in fact I hate accounts.  Very difficult to guestimate figures.

I also like the concept of a bar or nightclub, but the real issue seems to be the dependence upon tourists, who come and go according to seasons and the regular SARS outbreak.  From reading the Danish Bakers report, it's run on a knife edge, and that's a good bar.

If you have URL's handy for those "auto generate a complete business plan", would be very interesting to take a look.

Thanks