chapter_2.ppt The labour market definitions and trends
Hong Kong Funding Options presentation at BarCamp HK
1. Non-Dilutive Funding in
Hong Kong
Dr. Cory Kidd
Founder and CEO
Intuitive Automata
coryk@iabots.com
2. Why you’re in the right
place to raise some money
and not get screwed
Dr. Cory Kidd
Founder and CEO
Intuitive Automata
coryk@iabots.com
3. Example: Raise 3 Rounds
Initial Split
Founder A 45%
Founder B 30%
Founder C 25%
4. Example: Raise 3 Rounds
Initial Split Raise 200K for 20%
Founder A 45% 36%
Founder B 30% 24%
Founder C 25% 20%
Investor A 20%
5. Example: Raise 3 Rounds
Initial Split Raise 200K for 20% Raise 750K for 15%
Founder A 45% 36% 31%
Founder B 30% 24% 20%
Founder C 25% 20% 17%
Investor A 20% 17%
Investor B 15%
6. Example: Raise 3 Rounds
Initial Split Raise 200K for 20% Raise 750K for 15% Raise 3M for 15%
Founder A 45% 36% 31% 26%
Founder B 30% 24% 20% 17%
Founder C 25% 20% 17% 14%
Investor A 20% 17% 14%
Investor B 15% 13%
Investor C 15%
7. Example: Same Funding,
One Investor
Initial Split
Founder A 45%
Founder B 30%
Founder C 25%
8. Example: Same Funding,
One Investor
Initial Split 200K Incubation
Founder A 45% 45%
Founder B 30% 30%
Founder C 25% 25%
9. Example: Same Funding,
One Investor
Initial Split 200K Incubation 750K Loan
Founder A 45% 45% 45%
Founder B 30% 30% 30%
Founder C 25% 25% 25%
10. Example: Same Funding,
One Investor
Initial Split 200K Incubation 750K Loan Raise 3M for 15%
Founder A 45% 45% 45% 38%
Founder B 30% 30% 30% 26%
Founder C 25% 25% 25% 21%
Investor A 15%
11. Examples Compared
Initial Split Raise 200K for 20% Raise 750K for 15% Raise 3M for 15%
Founder A 45% 36% 31% 26%
Founder B 30% 24% 20% 17%
Founder C 25% 20% 17% 14%
Investor A 20% 17% 14%
Investor B 15% 13%
Investor C 15%
Initial Split 200K Incubation 750K Loan Raise 3M for 15%
Founder A 45% 45% 45% 38%
Founder B 30% 30% 30% 26%
Founder C 25% 25% 25% 21%
Investor A 15%
12. Examples Compared
• Sell for $30 million
• In the 3 rounds of investors case, Founder
A’s share is $7.8 million*
• In the incubation program, loan, and one
investor case, Founder A’s share is $11.5
million*
*with preferences and other terms that come with many investor shares, the math
won’t work out quite this simply, but the magnitude of the difference will be similar
13. So what can I do?
• Be Lean
• Generate revenue
• Join an incubators/accelerator program
• Get a loan
14. Two HK programs
• Hong Kong Science Park Incu-Tech
Programme (or newer Incu-App Programme)
• SERAP interest-free loan
15. Incu-Tech
• 3 year incubation program
• Rent-free office space for the first year
• Partial expense reimbursement up to HK
$645,000
• At Hong Kong Science and Technology Park
16. Incu-Tech: Application
• Applying is like raising money -- you’ll
present a business plan to convince the
committee that you’re building a company
that should be in the program and the
technology park.
• Plan 2-3 months from start to approval if
you have your plan together.
18. SERAP
• Stands for Small Entrepreneur Research
Assistance Program
• It’s an interest-free loan that gets paid back as
a percentage of revenue or later investment
• Maximum amount is currently HK $6 million
19. SERAP: Application
• Applying means you have to convince the
committee that you have a technologically
innovative project that will make money in a
few years.
• It’s defined by the “project” and not the
company, so you present details of the work
that you’re doing.
20. SERAP: Application
• The hardest part is the budget: you need a
detailed, line-by-line, month-by-month budget
for the duration of the project
• Plan for a month of application preparation
and then 2-3 months from submission to
project start
22. Other Resources
• Many other programs and spaces:
• Accelerator HK
• HAXLR8R (Shenzhen)
• Co-working spaces like CoCoon, the Hive,
BootHK
• Cyberport
• Other ITC (government) funding schemes
23. Other Resources
People:
There are a lot of people in Hong Kong -- and
here today at BarCamp -- who have created
growing companies. Find us in person or
online and ask your questions.
I’m always happy to provide more information
about how we have funded Intuitive Automata
and how you can apply those lessons to your
startup.