WHY SEEK FINANCING IN ASIA?

 WHY GO OVERSEAS?

 WHAT’S SO SPECIAL ABOUT S.E. ASIA?

THERE’S MORE $ IN ASIA TO GAMBLE ON NEW/HIGH RISK BUSINESSES.

 PAYOFF:

• FINANCIALLY, HIGH YIELDS IN THE INVESTMENT;
• SURVIVAL OF THE BUSINESS IF THIS IS FOR EXPANSION OF THEIR BUSINESS/COMPETITIVE POSITION

• STRATEGIC PARTNERS – BOTH SIDES CAN BENEFIT STRATEGICALLY FROM THE DEAL – NEED FOR YOUR TECHNOLOGY/SKILLS.
• LOCALS VCs
• INDIVIDUAL INVESTORS/FRIENDS AS YOU DEVELOP LOCAL RELATIONSHIPS

• WHILE IN U.S., REVIEW INTELLIGENCE REPORTS (U.S. GOV. PREINTING OFFICE)
• SUBSCRIBE TO ASIAN BUSINESS JOURNALS, SUCH AS:

• ASIAN WALL STREET JOURNAL
• ASIA WEEK
• FAR EAST ECONOMIC REVIEW
•  BEST SUBSCRIPTION – LOCAL NEWSPAPERS & MAGAZINES (HAVE A FRIEND/YOUR AGENT COLLECT FOR YOU AND REVIEW DURING YOUR TRIP – GREAT WAY TO SOURCE STRATEGIC OPPORTUNITIES, PARTNERS, ETC.)
• U.S. CONSULATES/TRADE OFFICES IN ASIA
• IMPORTANT TO HAVE LOCAL REPRESENTATION THAT IS WELL RESPECTED AND WELL0CONNECTED TO HELP YOU LOCATE, QUALIFY, NEGOTIATE AND SECURE BUSINESS IN THEIR COUNTRY

• MAJORITY CONTROL!!!
• DON’T KNOW HOW TO VALUATE A DEAL
• COMFORTABLE INTERPERSONAL RELATIONSHIPS – MAY NOT UNDERSTAND THE TECHNOLOGY 100%, BUT IF THEY FEEL GOOD ABOUT THE PERSON AND ESPECIALLY THAT THEY CAN "TRUST" THE PERSON, OFTENTIMES THEY’LL INVEST ON THE STRENGTH OF THE INTERPERSONAL RELATIONSHIP
•  THE IMPACT OF GOVERNMENT REGULATORY CONTROLS
• & REQUIREMENTS FOR LOCAL PRESENCE
• TAX ISSUES & REQUIREMENTS FOR ESTABLISHING A BUSINESS IN MALAYSIA

WHAT TO EXPECT IN NEGOTIATIONS W/ INVESTORS & CORPORATE PARTNERS

• PERCEPTION OF LITTLE/NO RISK (ALTHOUGH EVERYONE KNOWS THERE IS!)
• IF THE INVESTOR IS NOT FAMILIAR WITH TECH DEALS, THEY MAY WANT "PERFORMANCE" GUARANTEES – DON’T. IF THEY CAN’T APPRECIATE THAT TIS IS HIGH TECH (HIGH RISK, HIGH RETURN) AND NOT REAL ESTATE (WHERE THEY HAVE SOMETHING TANGIBLE FOR SECURITY), THEY DON’T NEED TO BE INVESTING IN A TECHNOLOGY COMPANY
• IF INVESTOR WANTS TO MAKE "STAGED" PAYMENTS, MAKE THE PARTY PUT ALL FUNDS UPFRONT IN ESCROW OR INTO A JOINT SIGNATURE ACCOUNT SO YOU KNOW ALL OF THE FUNDS ARE THERE FOR YOU.

• INFORMATION TECHNOLOGY (IT)!!! IN ALL FACETS OF THEIR ECONOMIC GROWTH, EDUCATION, WORKPLACE, MANUFACTURING, EXPORTS, IMPROVEMENTS TO THEIR QUALITY OF LIFE, ETC.

• BE PATIENT!!!
• STUDY THE CULTURE, TRADITIONS, HABITS OF THE COUNTY – REALLY UNDERSTAND THE FULL BACKGROU OF YOUR POTENTIAL INVESTOR:
  • LANGUAGE
  • HISTORY
  • CUSTOMS
  • HOLIDAYS
  • RELIGION/PHILOSOPHY

• ASIA – ESPECIALLY S.E. ASIA – IS IDEAL FOR FINDING STRATEGIC PARTNERS FOR FINANCING YOUR TECHNOLOGY COMPANY