Quality Alchemist (品質煉金術師): Hong Kong Venture Capital / Angel Investment Conference

2012年11月16日星期五

Hong Kong Venture Capital / Angel Investment Conference

InnoAsia 2012 as the signature event of Hong Kong Science and Technology Parks Corporation (HKSTPC), which embodied our commitment to advancing innovation and facilitating Hong Kong's growth as a key technology hub in the region. "Green and Healthy Living" was this year's focus and the four-day programme was from 13th to 16th Nov 2012. Hong Kong Venture Capital / Angel Investment Conference (HKVCAIC) was one of programmes performed on 15th Nov 2012.

Mr. Peter Fung (Vice-Chairman, Hong Kong Society for Quality (HKSQ)) and I attended the conference.

I attended the morning session and summarized below.
Firstly, Mr. Nicholas Brooke (Chairman of HKSTPC) gave a welcome remarks.

Then Miss Janet Wong (Commissioner for Innovation and Technology, ITC) gave an opening speech. She said ITC aimed to promote Science and Technology and Hong Kong had own unique strength such as IP Protection and Legal System.

Group photo of guests

The keynote speaker was Mr. Terrance Philips (Senior Vice President, Global Private Equity Services, Silicon Valley Bank, USA) and his topic named "Silicon Valley Bank's role in supporting tech start-ups in SV and how it can apply in HK". Terrance discussed how to build up ecosystem and helped young company entered into new market such as China and Russia. It was supported by Leadership and Capital.

The first Panel discussed "How can greater angel and VC investment be encourage in Hong Kong?"
Mr. Johnny Chan (Chairman, Crosby Asset Management (HK) Ltd. And President, HKVCA) was moderator. Panelists included Mr. Charles Mok (IT LEGCO member), Ir. Allen Yeung (Chairman, HKBAN), Mr. Terrance Philips and Mr. KO Chia (President, HKVCA).
Mr. Allen Yeung introduced the experience on establishment of investment platform named Hong Kong Business Angel Network (HKBAN). KO said how to present technology in simple manner even his grandmother could understand, moreover, entrepreneur should think Global and Attract talent and capital in here (HK). Charles Mok considered the role model for successful Angel and IT recognition. Finally, Allen added Science Park's mentorship to sharp business model for start up and HKBAN could educate the entrepreneurs.

The second Panel discussed "The angel, VC, PE and corporate venture in the investment food chain".
Mr. Denis Tse (Venture Committee Member, HKVCA and Ambassador to Asia, Institutional Limited Partnership Association) was moderator. Panelists included Angel: Mr. Duncan Chiu (Managing Director and CEO, Far East Holdings International Limited), VC: Ms. Melissa Guzy (Founding Partner, Arbor Partners Asia), VC: Mr. Michael Yao (VP, Sequoia Capital Asia) and PE: Mr. Edmond Lau (Director and Head of North Asia, CLSA Capital Partners).

After break, Technology investment trends were presented.
The first speaker was Mr. Michael Tong (Head of Hong Kong/China Research, Utility & Alternative Energy, Deutsche Bank, HK) and his topic was "Clean tech investment outlook in China".

Mr. Michael Tong briefed total number and amount of VC/PE financing cases according to ChinaVenture and found significantly declined in 2012. Then investment became more balanced across sub-sectors of clean technology. Clean tech related stocks were found under water, indicating that VC/PE financing in clean tech cooling down.

The second speaker was Mr. Tucker Grinnan (Head of Asian Telecommunications Research, HSBC Securities Asia) and his presentation named "Asia Telcos".

Key themes - monetizing data demand was discussed. Low-cost smartphones to drive 3G growth and data demand in China first, then Thailand, India and Indonesia were observed. Tucker said that typical operator faced capacity crunch 2011-12. He concluded that Cloud is the solution.

The third speaker was Dr. Jason Mann (Head of China Pharma/Healthcare, Barclays Capital Equity Research HK) and his talk entitled "China Healthcare-Growing from "faster/cheaper" to world-class innovation".

Dr. Jason Mann expected strong long-term growth of healthcare in China. Increasing medical insurance coverage was observed. Dr. Jason Mann concluded that China pharmaceuticals / Dignostics / Devices / Services / IT / Other were moving from faster and cheaper to world-class innovation.

The Third Panel discussed "What are the next big things in which to invest?"
Mr. Roger Marshall (Managing Director, Persimmon Capital) was moderator and the above three speakers were panelists. During the discussion, they agreed that Hong Kong market was small and we needed to think China, US and then the world. Dr. Mann said Hong Kong is a cash cow and Tucker suggested Hong Kong should change the education system.

The Last Panel discussed "What do Angel/VC investors look for when investing and what do entrepreneurs look for when seeking investors?"
Prof. Wilton Chau(Professor, CUHK and Vice-Chairman of HKBAN) was moderator. Panelists included Angel: Mr. Tytus Michalski (Managing Director, Fresco Capital Advisors), Entrepreneur: Ms. Janice Yao (Founder, Maxway Education) and Corporate Venture: Mr. Duncan Chiu (Managing Director and CEO, Far East Holdings International Limited).
Witon reminded that:
1. There are many Angels, but you don't know where they are.
2. Angel is looking for money.
3. Angel could take quick decision, 3-6 months compare with 6-12 months of venture capital.
Duncan Chiu opinions:
1. Investor does not ask company to change direction, but look for regular progress reports.
2. You need to prove your plan will work, not just an idea which may not be executed properly.
Tytus Michalski suggestions:
1. Prototype would help Angle investors to make decision. Like the track records of similar business plan.
2. Trust like company hygiene are important for Angels.
Janice Yao experiences to attract Angel investment:
1. You must know your business and local environment very well. And the Angel also knows the business very well.
2. Easy understanding financial model and data.