• What is Venture Capital?• Background of Venture Capital
Outline :
PERUSAHAAN MODAL VENTURA
Perusahaan modal ventura (venture capital company) adalah badan usaha yang melakukan pembiayaan dalam bentuk penyertaan modal ke dalam suatu perusahaan yang menerima bantuan pembiayaan (investee company) untuk jangka waktu tertentu (pasal 1 Keppres No. 61 Tahun 1988)
KETENTUAN-KETENTUAN MODAL VENTURA
1. Keppres No. 61/1988 tentang Lembaga Pembiayaan
2. KMK No.1251/KMK.013/1998 tentang Ketentuan dan Tata Cara Pelaksanaan Lembaga Pembiayaan
3. KMK No. 469/KMK.01/1995 tentang Pendirian dan Pembinaan Usaha Modal Ventura
4. KMK No. 58/KMK.017/1999 tentang Pengawasan Kegiatan Perusahaan Modal Ventura Daerah
KARAKTERISTIK MODAL VENTURA
Penyertaan modal berjangka menengah/panjang dan bersifat sementara
Bertujuan memperoleh return atas investasinya secara maksimal melalui capital gain, bukan penghasilan berupa dividen
Dapat disertai dengan keterlibatan dalam proses pengelolaan atau pemberian bantuan teknis lainnya
Pembiayaan dilakukan berdasarkan pertimbangan kuat atau lemahnya kondisi pengelolaan perusahaan, perkembangan kegiatan usaha di masa lampau, potensi pasar dan prospek usaha, bukan atas dasar pertimbangan tersedianya kolateral yang cukup
PIHAK-PIHAK YANG TERLIBAT DALAM PEMBIAYAAN MODAL VENTURA
Perusahaan modal ventura (PMV)
Perusahaan pasangan usaha (PPU)
Perusahaan yang memperoleh pembiayaan dalam bentuk penyertaan modal dari PMV
What is venture capital?
Introduction
What is venture capital?
Venture capital is equity financing to high risk young companies (sometimes also a combination of other financing instruments)
Venture capitalists are, before everything else, after extremely high returns on investments (30-60% per annum depending on the risk)
High expected return of VCs makes it very expensive financing method for entrepreneurs
Risk is considered higher the earlier the development phase of the venture is
Types of risk financiers
Stages of VCs investment
10
VC investment & exit
InitialMeetings
PrelimnaryProjectReview byVentureCapitalist
Term SheetSigned byVentureCapitalist &Promoters
DueDiligenceReview ofProject
VentureCapitalistwith Funds
PromoterswithProject
LegalDocuments/AgreementSigned
Investmentmade byVentureCapitalistin Project
Mentoring&Monitoringof Project
Divestment& ExitfromProject
Promoters
VentureCapitalist
What a project must have?
VC looks for
What a VC does?
Each fund manager mentors only a handful of projects
While fund size is big, no. of investments cannot be too much, hence project size increases
Unlike debt/other investor, VC is not silent spectator, often is on the board of investee company
JENIS–JENIS PEMBIAYAAN MODAL VENTURA
PMV memberikan pembiayaan modal ventura kepada PPU dalam bentuk:
• Penyertaan saham: penyertaan langsung melalui pembelian saham CPPU oleh PMV. Syaratnya adalah CPPU harus sudah dalam bentuk PT atau akan menjadi PT bersamaan dengan masuknya PMV sebagai pemodal
• Obligasi konversi: CPPU menerbitkan obligasi kepada PMV dengan perjanjian akan dapat dikonversi menjadi saham pada waktu yang ditetapkan. Syaratnya adalah CPPU harus sudah dalam bentuk PT atau akan menjadi PT bersamaan dengan masuknya PMV sebagai pemodal
• Pembiayaan bagi hasil: jenis pembiayaan di mana suatu persentase tertentu dari keuntungan pada periode tertentu telah terlebih dulu disepakati. Syaratnya adalah CPPU harus sudah dalam bentuk PT atau akan menjadi PT bersamaan dengan masuknya PMV sebagai pemodal
What is venture capital?
What is venture capital?
Funds are usually : Raised from the
investors (limited partners)
By the firm (general partners)
For a set period of time (around 12 years)
Supposed to return above-average interests
By investing in private companies and exiting via IPO or buyout
Characters of venture capital Private
Professionally managed Return on investment
focused May bring network,
business advice, credibility, etc.
Corporate Manage risk Distribution networks Product R&D Operational skills Spin-outs
Academic Intellectual property Spin-outs
Government Create new jobs and
grow economy Offer cash, tax
incentives, in-kind Stem brain-drain
Angels May bring network,
business advice, credibility, etc.
Live vicariously
Venture capital triangle
Investmentopportunities
Exitopportunities
Capital ($)
RETURNS
What VC firms look for?
• Bank looks at its immediate future; influenced by historical data/experience
• VC look to its longer run future• For VC; product feature, its prospect,
its marketability financial analysis• Bankers are creditors; VC are owners• Invest in long term capital, not
interest income
What VC firms look for?
Types of VC firms
ManagementSkills
- Character- Commitment- Competence
- Capability- Completeness
(team)
Products
- Idea- Better to have:
PrototypePilot Plant
Market& Financial
Viability
- Function- Demand
- Test market- Market survey
- Financial projections
Investment assessment points by VCs
Types of deals
Category ROI (%) Probability of Making Projection
(%)
Big Winner 100 10
Winner 30 50
Sideways 10 20
Workout 0 10
Loser (50) 5
Wipeout (100) 5
Total 100
Investors’ standard
Stage of Investment Expected Return to Investor (%)
Seed capital 100
Start up 50
Second round 40
Third round 30
Bridge to public offering 25
Turnaround company 50
Leveraged buyout 35
Investment monitoring
Warning signs Late payments Loss of profits Late financial reports Poorly prepared financial
reports Large changes in balance
sheet items Major adjustment in
figures Significant changes in
management Major changes in sales
Inventory changes Lack of planning Changes in accounting
method Loss of major customer,
supplier, or lender Labor problems Changes in prices and market
share Technical change General industry decline