Quality Alchemist (品質煉金術師): Hong Kong Venture Capital & Angel Investment Conference 2014

2014年12月5日星期五

Hong Kong Venture Capital & Angel Investment Conference 2014

“APAC Innovation Summit (AIS)” as a flagship event of Hong Kong Science and Technology Parks Corporation (HKSTPC). "Shaping The Future" was this year's theme and the four-day programme was from 1st to 5th Dec 2015. Hong Kong Venture Capital and Angel Investment Conference (HKVCAIC) was one of programmes performed on 5th Dec 2014. I attended the morning session and summarized below.
In the beginning, the Honourable Mrs. Fanny Law, GBS, JP (Chairperson, HKSTPC) gave welcome remarks. She said we needed to fill the funding gap in the value chain from startup to IPO. HKBAN is one of important partner and HKSTPC considered forming corporate fund to support startups in the Science Park.

Miss Au King-Chi, GBS, JP (Permanent Secretary for Financial Services and the Treasury (Financial Services), HKSAR) gave an opening remark. She introduced some new initiatives in Hong Kong such as Bond platform in 2009 and the asset development industry was expected to be form through the Bond. Government supported HKSTP Phase III development and they hope to enhance oversea investment to China through Hong Kong.

Group photo

One-on-One Interview Session entitled “Latest Trend on Venture Investment”
Mr. Marvin Lai (Managing Partner, iTM Ventures Inc.) was the moderator and he introduced the first plenary speaker Prof. Yesha Sivan.

Prof. Yesha Sivan (Founder, Metaverse Labs Ltd and Executive Director of the Coller Institute of Venture, Tel Aviv University, Israel) was the first plenary speaker and his presentation named “6 Current Trends, 3 Ongoing Trends”. Prof. Sivan said venture ecosystem contained four actors including Public Authorities, Institutional Investors, Venture Capitalists and Entrepreneurs. He also briefed their value chains.

In his overview, there were 6 current trends and 3 onging trends in the following diagram. Then he explained point by point.

Current Trends from the bottom:
- Rise of New Treatment of Ideas (Send 2 page discourse of innovation, Get Money or not)
- Rise of Innovation Platforms (There are 5 types of Innovation Platforms included Process (e.g. IT in business process), Generative (e.g. IT in the network level), Ready-made (e.g. LinkedIn, Google & Facebook), Technology (e.g. Cloud, Mobile & Data) and Building (e.g. Itself generate))
- Rise of the Early Users Factor (e.g. Kickstarter – Having client before product)

Curent Trends from the top:- Rise of Corporate Virtual R&D (e.g. using outside corporate R&D capability)
- Rise of Super Angels (A group of serial investors in early stage ventures and hybrid of traditional Angel investors and VCs)
- Rise of Regulation (e.g. Alternative Investment Fund Managers Directive, EU that increased the overhead)

Ongoing Trends:
- Messy (Limited Partnership, Angles for new ways to fund and innovate)
- Fast (Return of Facebook about 1.5yr)
- Global (e.g. Israeli Firms in NYC)

Some investors and entrepreneurs asked questions.

The second panel discussion entitled “From Zero to IPO” which moderated by Ir. Allen Yeung (VP-BDTS, HKSTPC) (Right) and Panel members (Start from Left) included Mr. Chi Ho Wong (President, Advanced Card Systems Ltd), Mr. Duncan Chiu (Managing Director, Radiant Venture Capital), Mr. Robert Yung (Partner, Walden International), Mr. Johnny Liu (Director, Credit Suisse) and Mr. Michael Chan (VP, Global Markets Division, HK Exchanges and Clearing Limited).

Some discussions were recorded as follows.
Duncan shared US inventor looking for Market Growth, Right Team and IP filed. He said Networking was more important than Money. After funded, we needed professional managers.
CH Wong shared his company from Zero to IPO got two investors for $2 Million.
Robert said Startup’s IP portfolio.

The third panel discussion was “The Midas Touch: A New Breed of Investors in China’s Entertainment Industry Powered by the Internet” and the moderator was Mr. Alexander Wan (Senior, Advisor, China Daily Asia Pacific) (Right). Panel experts included Mr. Wang Guo Wei (Founder, National Film Capital), Mr. David Chen (Co-Founder AngelVest), Mr. Zhou Li (Publisher & Editor-in-Chief, China Daily Asia Pacific) and Mr. Karon Wan (Public Sector Managing Partner, Deloitte Consulting (HK) Limited).

The first panel speaker was Mr. Zhou Li (Publisher & Editor-in-Chief, China Daily Asia Pacific) and he discussed China’s media and entertainment industry growth. A new wave of internet-led investment trends is taking over traditional investors as the new breed of investors.

The following diagram showed the recent major deals in China’s Entertainment Industry powered by the Internet.

Mr. Wang Guo Wei (Founder, National Film Capital) and he introduced the China film industrial chain model.

During the tea break, I took a photo with The eNano Health Limited.
(Left: Mr. Pat Leung, I and Ms. Winnie Leung)

Our IUC colleagues attended the conference.
(Left: Mr. Antony Kwong, Ms. Katrina Yeung and Ms. Jenny Cheung)

Another One-on-One Interview Session entitled “Angel Investment Case Studies on Alibaba, China.com and BYD”. Dr. Samson Tam (Chairman, Hong Kong Association for the Promotion of Cooperation in Industry, University and Research Institute) was the moderator and he introduced the plenary speaker Mr. Simon Wong (Founding Partner, Whiz Partners Asia Ltd.) (Left)

Mr. Simon Wong told us about investment on Mr. Jack Ma (Ma Yun) Aliaba in 1999. He said Mr. Jack Ma’s speech had attractive power. Only half hour presentation, he invested USD 0.5 million and then he sell for USD 60 million (about 120 times of original investment). In the first 4 year, no one knew how to earn money but they were able to raise fund continuously until success. Mr. Wong said the critical success factor was people. Business plan will change but people spirit is not. Another one is BYD. It is pity that Mr. Wong prepared investment proposal three times to their board but still rejected. He said he feel the founder of BYD would be success but it was difficult to explain to the board. It must be contact with the founder directly.

After the Angel Investment Pitching Session, I went to the exhibition hall and took a photo in HKSTP booth.