This is my presentation in Entrepreneurship Class at Sampoerna University. This presentation is about types of Source of Capital for Small Business. Slide: PowerPoint 2013 Design by: Hedi Fauzi Image: Freepik, Google Image, Made by myself If you need the original file for your reference, feel free to ask me via email: hedi.fauzi@hotmail.com with subject [SlideShare] (Your Subject)

1. ENTREPRENEURSHIP
Hedi Fauzi - Individual Task
SOURCE OF CAPITAL
Lecturer: Mr. Hari Sungkari

2. What is Business Angel?
“Business angels (a.k.a angels investor) are affluent and wealthy
individuals who invest their personal capital in start-up companies
(that are typically early-stage) in return for an equity stake”
source: startups.co.uk

3. Example of Business Angel?
Pak Bastian has an idea to make ‘Empang Lele’ with automatic feeding system by
application control based. Pak Bastian needs to build a prototype and form a
business in order to capitalize on the idea and begin the business.
Pak Bastian finds Ibu Kokom, an angel investor. Ibu Kokom is wealthy, she believes in
Pak Bastian idea and wants to see it succeed. Ibu Kokom invests 50 Billion IDR and
receives 40% of the company. Pak Bastian uses the money to build the prototype
and begin the business. Ibu Kokom provides valuable business advice and
encouragement.
As a thank you to Ibu Kokom, Pak Bastian named the business as “Baskom Inc.”

4. What is Venture Capital?
“Venture capital is a type of funding for a new or growing
business. It usually comes from venture capital firms that
specialize in building high risk financial portfolios. With venture
capital, the venture capital firm gives funding to the startup
company in exchange for equity in the startup.”
source: Investopedia.com

5. Example of Venture Capital?
“Baskom Inc.” is a big company that works in “Empang Lele” with automatic feeding
system by application. Pak Bastian the CEO of Baskom Inc. wants to expand the
business by making “Empang Lele” with automatic reproduction system. He needs
much more capital
Pak Bastian come to “Silicon Valley Venture Firm” in order to gain more capital. SVVF
reviewing the proposal, company, business plan, financial report. SVVF is very
selective because they are seeking opportunities in which their investments will grow
rapidly and provide a successful exit within a certain timeframe.
SVVF decided to invest to “Baskom Inc.” and they purchase Baskom Inc.'s preferred
stock and/or lend money to the company.
Sometimes SVVF take active management roles and board seats in the companies.

6. What are Series A? Series B?
“A Series A round is the name typically given to a company's first
significant round of venture capital financing. The name refers to
the class of preferred stock sold to investors in exchange for their
investment (scaling the product)”
source: wikipedia.org
“The Series B round will generally take place when the company
has accomplished certain milestones in developing its business
(scaling the business)”
source: investopedia.com

7. Example of Series A? Series B?
Series A
Let’s say Baskom Inc. already popular and have a consumer in Bandung, Pak
Bastian realized that he needs to expand the distribution of ‘Lele’ to Jakarta,
Surabaya, Medan, Maluku, and Merauke. Pak Bastian meet with group of
Angels Investor to get the fund.
Series B
Let’s say Baskom Inc. already popular around Indonesia. Pak Bastian realized
that he needs to expand the business to another country such as Malaysia,
Thailand, Singapore, Vietnam, and China. He needs more employee such as
sales people, distribution people, manager, etc. Pak Bastian needs much more
fund. Pak Bastian meet with Venture Capitalist firm to get the fund

8. What is Crowdfunding
“Crowdfunding is a method of raising capital through the collective
effort of friends, family, customers, and individual investors. This
approach taps into the collective efforts of a large pool of
individuals—primarily online via social media and crowdfunding
platforms—and leverages their networks for greater reach and
exposure”
source: startups.com

9. Example of Crowdfunding
Let’s say “Baskom Inc.” already succeed all around Asia. Pak Bastian realized
that he needs to help people around him in order to make everyone have the
same happiness with him. He want to build an ‘Empang Lele School’ in his area,
but to build an ‘Empang Lele School’ he needs money to build a place for study.
Pak Bastian make a website where everyone can donate on the website. Finally
Pak Bastian got the money to build a school

10. What is Initial Public Offering
“An initial public offering (IPO) is the first sale of stock by a private
company to the public. IPOs are often issued by smaller, younger
companies seeking the capital to expand, but can also be done by
large privately owned companies looking to become publicly
traded”
source: Investopedia.com

11. Example of Initial Public Offering
Let’s say “Baskom Inc.” already popular. But, Pak Bastian never stop to expand
the business, in order to get fund easier, Pak Bastian decided to Offer Baskom
Inc. to the public by selling the stocks.
After going to Public, Pak Bastian changed the company name to PT. Baskom
Sejahtera Selamanya Tetap Abadi Untuk Indonesia

12. ENTREPRENEURSHIP
Hedi Fauzi - Individual Task