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From TechinAsia:

Tech startup activity has intensified in Southeast Asia in the past few years as investors and entrepreneurs have started to look more seriously at opportunities in the region. Acquisition activity has increased too. To help you keep track of what’s happening, here’s a cheatsheet of exits in the past few years, covering Singapore, Indonesia, Philippines, Malaysia, and Thailand.

Singapore

Nonstop Games
Games developer.
– Acquired by Candy Crush Saga maker King for US$6 million cash upfront. Certain employees received US$10M. Further payments of US$16M can be expected for key employees, adding up to a potential US$84 million over four years subject to hitting revenue targets.
– Announced in August 2014
– Source: Games in Asia

Zopim
Zopim is a live customer support chat widget.
– Acquired by Zendesk for US$30 million in cash and stock.
– Completed in March 2014
– Source: Tech in Asia

ERIIN
An online fashion store.
– Acquired by Indonesian ecommerce site for undisclosed amount.
– Announced in April 2014
More info

Indiescapes
Marketplace for unique travel experiences guided by locals.
– Acquired by competitor BeMyGuest for undisclosed amount.
– Announced in January 2014
More info

SGE
Tech blog covering startups and technology in Southeast Asia.
– Acquired by Tech in Asia for undisclosed sum.
– Announced on 6 September 2013
– Source: Tech in Asia

EK Media
Runs Sample Store, an ecommerce site for getting cosmetics samples.
– Acquired by SingPost for US$1.2 million.
– Announced in September 2013
More info

ThoughtBuzz
Social media analytics
– Acquired by Indian digital agency To The New. Terms undisclosed.
– Announced on 3 September 2013
– Source: EFY Times

Viki
Video content site with crowdsourced translation tools.
– Acquired by Rakuten, Japanese e-commerce giant for a reported USD 200M.
– Announced 2 September 2013
– Sources: Tech in Asia, AllThingsD

YFind
Indoor positioning.
– Acquired by Ruckus Wireless, a Silicon Valley based supplier of advanced wireless systems. Terms undisclosed.
– Announced on 23 July, 2013
– Source: Tech in Asia

Techsailor
Social, location and mobile media services.
– Acquired by To The New, a digital services network from India. Terms undisclosed.
– Announced on 23 July, 2013
– Source: Tech in Asia

Travelmob
Travelmob is an short-term vacation rentals site with an inventory of 14,000 accommodations throughout Asia-Pacific.
– Acquired by NASDAQ-listed HomeAway for rumored USD 12.5M. Travelmob team retains 37 percent share of business and additional funding.
– Announced on 17 July, 2013
– Source: Tech in Asia

Asian Food Channel
The Asian Food Channel (AFC) is a food and lifestyle broadcaster.
– Acquired by Scripps Networks for US$66 million.
– Announced on April 15, 2013
– Source: Tech in Asia

DS3
DS3’s chief product is an ‘authentication server’ that offers internet banking security that can be easily integrated with existing hardware and software systems.
– Acquired by Gemalto for undisclosed sum.
– Announced on 4 April, 2013
– Source: Tech in Asia

sgCarMart
Its businesses include vehicle classifieds, a car auction platform, an online marketing site, as well as car loans, insurance and settlement services.
– Acquired by Singapore Press Holdings for USD 48M at x12 multiple of 2012 annual revenue, with final amount dependent on post-merger company performance.
– Announced on 1 April, 2013
– Started in June 2004
– Source: Tech in Asia

Catcha Digital Asia
An online advertising network that connects brands in the online world through their own suite of online media products. It was a subsidiary of Catcha Group Pte Ltd.
– Acquired by Japanese e-marketing company Opt Inc for undisclosed terms.
– Announced on 19 March, 2013
-Started in December 2009
Source: e27

Gridblaze
A Storage-as-a-Service solution to enable developers and companies localize their data, ensuring faster access for users.
– Acquired for a seven-digit sum (USD) by an undisclosed San Francisco-based startup in a technology transfer deal for a seven digit sum. The Gridblaze team will join the startup’s 100+ strong staff.
– Announced on 19th February, 2013
– Founded in 2012 by Mikhail Choo.
Source: e27

TheMobileGamer
A startup that aggregates, distributes, licenses and develops mobile gaming software.
– Acquired for SGD1.8M (USD1.5M) by SingTel for 35.5% stake. Japanese telco Softbank will acquire shares of TMG under the same terms. Once buyout is complete, both companies are expected to own a 41% stake each.
– Announced on 25 September, 2012
– Founded in 2008 by Alvin Yap
Source: Tech in Asia

HungryGoWhere
A food portal with reviews and ratings contributed by users.
– Acquired for S$12M (US$9.4M) by SingTel
– Announced on 22nd May, 2012
– Founded in 2007 by Dennis Goh, Wong Hoong An, and Tan Yung Yih
Source: Tech in Asia

Peekspy
The company’s site, Fanvenues, allows users to peek into concert and sports venues in 3D so as to make better purchase decisions about tickets.
– Acquired by eBay-owned Stubhub, terms undisclosed
– Announced on 8th March, 2012
– Founded in May 2008 by Wesley Oxenham, Oliver Oxenham, and Paymon Rasekhy
Sources: Tech in Asia, Wesley Oxenham’s blog

AdMax Network
Digital media network
– Acquired by Komli Media from Mumbai, terms undisclosed
– Announced on 29th February 2012
– Founded in 2006
More info: StartupCentral.in

OrSiSo
Social media dashboard
– Intellectual property rights acquired by SingTel, Terms undisclosed
– Announced on 21st September, 2011
– Founded in 2008 by Thorben Linneberg, Jerome Poudevigne, and Alastair McAlpine
Sources: SGE articles here and here

BigDeal.sg
A daily deals site
– Acquired by NTUC Link, terms undisclosed
– Announced on 1st September, 2011
– Founded in May 2010
More info: Tech in Asia

Aktiv Digital
Ad network platform
– Acquired by Komli Media (Mumbai), terms undisclosed
– Announced on 4th June, 2011
– Founded in 2007
More info: Tech in Asia

JobsCentral Group
Jobs search portal
– Acquiredby US jobs site Career Builder,terms undisclosed
– Announced on 3rd May 2011
– Founded in 2000
More info: Tech in Asia

Brandtology
Online brand monitoring and business intelligence
– Acquired by Australia’s Media Monitors, terms undisclosed
– Announced on 17th February, 2011
– Founded in 2008
More info: Tech in Asia, Brandtology

Beeconomic
Daily deals site
– Acquired by Groupon, terms undisclosed
– Announced on 1st December, 2010
– Founded in May 2010
More info: Tech in Asia, Xin.msn

TransferTo
Mobile payment transfer company
– 90% shares acquired for US$38M by payment and security specialist Ingenico, up from 35% stake
– Announced on 4th August, 2010
More info: GoMoNews, Tech in Asia, VentureBeat

TenCube
Mobile security startup
– Acquisition by McAfee estimated at S$6.8M (US$5M) or S$15M (US$11M)
– Announced on 29th July, 2010
– Founded in June 2005
More info: Digital Life

ShowNearby
Top mobile directory app in Singapore
– Majority stake of 53.13 percent at US$3.5M by Global Yellow Pages
– Announced on 9th July, 2010
– Started in November 2007
More info: The Edge Singapore

Shareinvestor.com
An internet financial services and technology company with an established base of subscribers and users of its market data tools and financial applications.
– Acquired by Singapore Press Holdings for SGD 12M, with final amount dependent on post-merger company performance.
– Announced on 17 November, 2008
More info: AsiaOne

Soundbuzz
Music downloads site
– Acquired by Motorola for approximately S$35M (US$27.65M)
– Announced on 7th January, 2008
– Started in 1999
More info: TechCrunch, CNET Asia

e-Cop
Provider of critical infomation Security technologies and services to enterprises and governments
– Acquired by a wholly-owned subsidiary of Temasek Holdings, terms undisclosed
– Announced in 2007
– Founded in 2000
– More info: LinkedIn

HardwareZone
IT Media company
– Acquired by Singapore Press Holdings for S$7.1M (US$4.5M)
– Announced on 29th September, 2006
– Founded in 1998
More info: SPH, Wikipedia



Indonesia


Klik-Eat
Indonesia-based online food delivery company
– Acquired by Japanese online food delivery business Yume no Machi for an undisclosed amount. Yume no Machi now owns a 55.4 percent stake.
– Announced in September 2014
More info

Maxitech
Indonesia-based app store and content provider
– Acquired by Singapore-based gaming cloud service provider Corous360 for S$4.72 million (US$3.35 million).
– Announced in May 2014
More info

PriceArea
An ecommerce price comparison site
– Acquired by South Korea’s mobile media company Yello Mobile for an undisclosed amount
– Announced in May 2014
More info

DapurMasak
A recipe sharing site and social media for cooking enthusiasts
– Acquired by Japan’s recipe sharing site Cookpad, which purchased 60 percent of the for $600,000. The remaining 40 percent of the site’s shares were sold for an undisclosed amount.
– Announced in April 2014
More info

Eevent
An event management platform
– Acquired by US-based business development company EnvisionPoint, terms undisclosed.
– Announced on September 2013
More info

AyoPay
Payment service provider focusing on online game credits.
– Acquired by MOL AccessPortal, a subsidiary of Malaysia’s MOL Global, for undisclosed terms.
– Announced on 20 March, 2013
– Started in November 2009
– Source: Tech in Asia

Bouncity
Location-based social network
– Acquired by Indonesian game publisher Qeon, terms undisclosed
– Announced on 13th July, 2012
More info: DailySocial

Gamesaku
iOS games review site
– Acquired by Indonesian company Apps Foundry, terms undisclosed. Later acquired by Tech in Asia.
– Announced on May 9, 2012, and September 2013.
More info: Tech in Asia

MakeMac
Biggest community website for Mac and iOS fans in Indonesia
– Acquired by Indonesian company Apps Foundry, terms undisclosed
– Announced on 16th February 2012
More info: TechinAsia

Detik.com
Online news portal
– Acquired by Para Group for US$60M
– Announced on 4th August, 2011
– Launched in 1997
More info: Tech in Asia, DailySocial.net

Rumah123.com
Claims to be Indonesia’s largest property portal
– Acquired by IPGA, which owns iProperty, for US$ 1.6M in cash and seven million shares
– Announced on 28th May, 2011
More info: iProperty, DailySocial.net

Rumahdanproperti.com
Indonesia’s third largest property portal
– Acquired by IPGA, which owns iProperty, for US$300k in cash and another US$200k subject to conditions
– Announced on 28th May, 2011
More info: iProperty, DailySocial.net

Disdus
Daily deals site
– Acquired by Groupon, terms undisclosed
– Announced on 6th April, 2011
– Launched in August 2010
More info: DailySocial.net

Rumah.com
Claims to be Indonesia’s top property website
– Acquired by PropertyGuru, terms undisclosed
– Announced on 7th February, 2011
– Founded in 2007
More info: PropertyGuru

Koprol
Location-based social service
– Acquired by Yahoo!, terms undisclosed
– Announced on 25 May, 2010
– Started in 2008
More info: eweek, e27



Malaysia


Jobstreet
Pan-Asian online jobs search business
– Slated to be acquired by Australian counterpart Seek, which sought to purchase the remaining 78 percent for a valuation of US$523.5 million.
– Announced in February 2014.
– Source: Tech in Asia

Tongue in Chic
A media platform for lifestyle, fashion, shopping, and beauty
– Acquired by Pop Digital, a creative media shop specializing in media and technology. Terms undisclosed. Both companies will join forces to form the Popfolio Network.
– Announced on 2 September 2012.
– Source: e27

Ocision
Ocision runs Airbnb-like service iBilik, property listing site Propwall, and Carsifu.my.
– 90% stake acquired by Malaysian media giant Star Publication for RM 13.5M (USD 4.36M). First exit for Crystal Horse Investments.
– Announced on 1 Jun 2013
– More info: theStar Online, Tech in Asia

Carlist.my
Car portal
– 50% stake acquired by Catcha Media estimated at around RM5M (US$1.5M) in Dec 2011, complete acquisition on 23rd Feb, 2012
– Started in 2007
– Announced on 24th Jan 2012
More info: Catcha Media, Entrepreneurs.my

Integrated Methods
Ran Everyday.com.my, a daily deals site.
– Acquired by South Korea’s Ticket Monster, terms undisclosed
– Announced on 31 May, 2011
More info: TechCentral

Groupsmore
Daily deals site
– Acquired by Groupon, terms undisclosed
– Announced on 26th Jan 2011
– Started in 2010
More info: Entrepreneurs.my articles here and here

FullHouse.com.my
North Malaysia’s leading real estate site, which at the point of time had 100,000 visitors viewing more than one million real estate pages monthly, an opted-in member database of more than 45,000 home buyers and investors, and an active Facebook page with 9,000 members.
– Acquired by Singapore’s PropertyGuru for cash and equity, terms undisclosed
– Announced on 24th Jan 2011
More info: PropertyGuru

Think Media
Property site which had more than 4 500 Agents advertising approximately 80 000 properties for sale and for rent. It received 178 000 Unique Visitors in May 2010
– Acquired by iProperty for AUD2.08M.
– Announced on 2 Aug, 2010
More info: IPGA

Octazen Solutions
Contact importing from one service to another
– Talent acquisition by Facebook, terms undisclosed
– Announced on 19th Feb, 2010
More info: GigaOm, TechCrunch



Philippines


Anino Games
Casual games for iOS and Android.
– Acquired by Thailand-based games developer Pocket PlayLab, terms undisclosed
– Announced July 2014
More info

FlowersExpress
Online flower delivery site
– Acquired by IslandRose.net, terms undisclosed
– Announced 30th October 2011
– Started in 2005
More info: YugaTech

LoadCentral
Prepaid payment platform.
– 100% acquired by MOL AccessPortal for undisclosed financial terms.
– Announced 1 June, 2011
More info: MOL

Chikka
Wireless application service provider, known for its instant messenger
– Acquired bySmart Communications for PHP629M (US$13.5M)
– Announced 10th November, 2009
More info

Sulit.com.ph
Leading classified ads site in Philippines
– 51 percent stake acquired by MIH at estimated US$1M
– Announced 3rd July, 2009
– Founded in 2006
More info: YugaTech

Entertainment Gateway Group
One of the leading mobile content providers in the Philippines, offering value-added services for mobile including music downloads, news & information, games, chat, and web to mobile messaging.
-Acquired by Globe Telecom for PHP351M (US$7.83M)
– Announced on 5th August, 2008
– Started in 2001
More info: YugaTech

Digiwave Solutions
Online gambling software developer
– Acquired by Philippines-listed entertainment group Premiere Entertainment Productions for P50 million (about US$1.24M)
– Announced on 29th Feb 2008
More info: CasinoMeister

Airborne Access Corp
Wireless fidelity firm
– 51% share acquired by ePLDT in 2005 for undisclosed amount
– Announced in 2005
More info: GMANetwork



Thailand


Zest Interactive
Thailand’s leading games distributor and payment gateway company
– Acquired by Malaysia’s MOL Global, terms undisclosed
– Announced on 25th July, 2011
– Started in 2006
More info: Tech in Asia, Techielobang

Dealkeren and parent company Ensogo
Ensogo is a daily deals company headquartered in Thailand and operating in Philippines and in Indonesia as Dealkeren
– Acquired by Living Social, terms undisclosed
– Announced on 27th June, 2011
– Started in 2009
More info: DailySocial.net, Wikipedia

Pagemodo
An online tool for designing Facebook fan pages.
– Acquired by website creation service provider Webs, terms undisclosed.
– Announced on 1st February, 2011
– Started in March, 2010
More info: TechCrunch, Pagemodo

Tarad.com
Thailand’s largest e-commerce company at time of acquisition
– Acquired by Rakutan, Japan’s leading e-commerce company, with 67 percent stake
– Announced on 1st October, 2009
– Established in 1999
More info: The Nation



Vietnam

Glamybox
Beauty subscription commerce startup.
– Acquired by VanityTrove, a similar company from Singapore for undisclosed terms.
– Announced on 2 August, 2013.
More info: Tech in Asia




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[OSL]

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Lessons Learned?

In the next 10 years I expect the volume of acquisitions in Asia to increase dramatically.

The infrastructure layer has been set. Everywhere I look, even poor people in Asian slums in China, Thailand, and the Philippines are using Android phones with 3G.

There are a billion people walking around with supercomputers in their pockets, ranging from 7 to 70 years old across the continent.

The application layer in Asia exists insofar as people use apps that they have adopted from the West (Facebook, Twitter, Snapchat, Instagram) or apps that have been produced by Asian internet juggernauts (LINE, Wechat, Kakaotalk). Homegrown talent is sparse. My opinion is that it's cultural; the top programmers usually get trained so that they can go work for Microsoft.

Singapore Ecosystem

This is why Singapore has been investing so aggressively in developing a startup ecosystem. From certain perspectives, they are doing all the right things. They are making it easy to get work visas, they are investing in the physical, legal, governmental, and financial infrastructure to make dealflow happen in this space.

On the other side, some things about Singapore will never be startup friendly. A place that bans chewing gum is unlikely to breed a generation of rogues and rebels, which is usually what you have to be if you want to hack and disrupt the status quo with a revolutionary venture.

The Opportunity

If you are a hacker/programmer with a good startup idea and the desire to live in Asia you should consider raising venture capital in Singapore.

The worst thing that will happen is that, for a period of 2-3 years, you are the founder of a company, pay yourself a salary out of that VC money, get the experience of building an international venture with an international team, dealing with investors and lawyers, and be in the heart of the most dynamic region of the world.

Dozens of world class beaches and cities would be within a 4 hour, $200 USD round trip flight of you.

[Phuket, Bangkok, Chiang Mai, Angkor Wat, Phnom Penh, Saigon, Hanoi, Penang, Bali, Jakarta, Hong Kong, Shenzhen, Kunming, Guangzhou, Taipei, Manila, Boracay, Palawan, Vientiane, Luang Prabang, Brunei]

Even if you totally crash and burn you will gain an immense amount of experience that would be hard to replicate anywhere else. You could use this to get a job or launch a new startup.

The best thing that could happen is that you will become wealthy through an acquisition and then be on track to gain Singaporean permanent residency, which is the first step towards becoming a Singaporean citizen.

Moreover, if you were to get an acquisition in Singapore then your assets would immediately be offshore, helping you avoid the whole situation of having to haul millions of dollars out of the US into more tax friendly jurisdictions.

For a lot of Americans, this is a really great way out of the US system of international taxation and general oppression. Any of you with offshore assets who have been dealing with FATCA know exactly where I am coming from.

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Opportunities multiply as they are seized.

-Sun Tzu, The Art of War


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[OSL]

Here is the original article:

https://www.techinasia.com/cheatsheet-of...east-asia/

Here is an article specific to Singtel, who seems to be the most prominent acquirer of tech startups in Singapore:

https://www.techinasia.com/cheatsheet-of...uisitions/

[OSL]

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If you are a hacker/programmer who can develop across a full stack (server side, front end, iOS, Android) and you are looking for more explicit instructions on how to execute upon this sort of plan in Singapore, message me privately.

[Old Fritz]

How does Singapore feel about immigrants? Are there any specific group of people that do not like or gets treated poorly there?

[Maciano]

I love Singapore. Hot, wealthy, and everyone there seems sane & motivated.

Malaysia is also quite good, I felt right at home in Georgetown/Penang.

I could easily see myself living in any of these places.

[OSL]

(10-27-2014 07:31 AM)Old Fritz Wrote:  

How does Singapore feel about immigrants? Are there any specific group of people that do not like or gets treated poorly there?

The Indian/Bengali/SriLankan guys who work in construction seem to not be treated that well although I'm sure it would be worse almost anywhere else in Asia, including Hong Kong and especially Dubai.

The answer to your question depends entirely on what you have to offer Singapore. If you graduated from a reputable school and have technical skills sets of some sort then they will roll the red carpet out for you.

If you are a high school graduate who has been working at Applebee's for three years they will probably not be bending over backwards for you.

I got an employment pass application approved within hours of the company sending it in. Literally hours.

It's all relative and depends on what kind of package you are bringing to the table.

As a typically Asian country, they put a strong emphasis on higher education. Having a masters degree will significantly expedite the process, although you need to send original copies of all of your diplomas.

[OSL]

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If you are a skilled hacker/developer who knows a full stack (front end, server side, iOS, android) and you have definite plans/desire to be in Asia in 2015 and are looking for a job+equity, get in touch

Ditto designers.

Also people interested in sales/marketing who are bilingual English/Mandarin.

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Opportunities multiply as they are seized.

Sun Tzu, Art of War.

[Fortitude]

As a developer i did consider working in Singapore. But from what i understand they pull a lot of hours over there, is this true according to you? I value my time to much to go for that.

[OSL]

(10-28-2014 05:26 PM)Fortitude Wrote:  

As a developer i did consider working in Singapore. But from what i understand they pull a lot of hours over there, is this true according to you? I value my time to much to go for that.

Are you referring to corporate or startups?

I'm not 100% sure about what corporate hours are like for devs in SG.

If you work for a startup you will be working heavy hours regardless of the country you live in. This is the nature of entrepreneurship.

[Kitsune]

Hey YMG, great thread.

How achievable is this goal? How easy is it to get venture capital/backing to help you through the start up period? Or is this plan more bootstrapping until a later stage?

Say an entirely hypothetical person had several years experience in various businesses, an ok but not earth-shattering ability to program and high level qualifications (Masters Level) in a different field, would venture capital and the like be open?

If said hypothetical person had a very basic understanding of Mandarin and basic programming knowledge and said, "I'll work on those until say, the second half of 2015" would you recommend that course? Or is it only for developers with loads of experience.

And what would you say about the ideas themselves? I'm working through the companies you've provided and taking notes. Would you say the ideas have to be super unique? If not (or even if so,) what are the important factors when preparing prototypes of products? (Delivery, marketing, and the like.)

Sorry if you've answered these questions and I'm being dense/have missed them. Working quite hard on some stuff and this is my coffee break.

[OSL]

(10-29-2014 10:39 AM)Kitsune Wrote:  

Hey YMG, great thread.

How achievable is this goal? How easy is it to get venture capital/backing to help you through the start up period? Or is this plan more bootstrapping until a later stage?

Say an entirely hypothetical person had several years experience in various businesses, an ok but not earth-shattering ability to program and high level qualifications (Masters Level) in a different field, would venture capital and the like be open?

If said hypothetical person had a very basic understanding of Mandarin and basic programming knowledge and said, "I'll work on those until say, the second half of 2015" would you recommend that course? Or is it only for developers with loads of experience.

And what would you say about the ideas themselves? I'm working through the companies you've provided and taking notes. Would you say the ideas have to be super unique? If not (or even if so,) what are the important factors when preparing prototypes of products? (Delivery, marketing, and the like.)

Sorry if you've answered these questions and I'm being dense/have missed them. Working quite hard on some stuff and this is my coffee break.

Hey YMG, great thread.




How achievable is this goal? How easy is it to get venture capital/backing to help you through the start up period? Or is this plan more bootstrapping until a later stage?


This is a very loaded question. If you show up to Singapore and cold call VCs with nothing but a powerpoint then you will probably face a difficult time.

In contrast, if you spend 3-6 months building a prototype (ideally you have a CTO partner) and getting initial users and traction - even if you don't have a ton of users, if you can demo your app MVP/prototype in front of VCs you will multiply your chances of getting funded.

I don't think anyone should show up with nothing but a powerpoint.

Having said that - I know a bunch of people in both silicon valley and Singapore (mostly silicon valley) who have done exactly that. There is a shit ton of cash sloshing around venture capital lately and that is not going to last forever.

I'll answer by saying this - it is never going to be easy, in your life in any situation, to convince someone to hand you a check for $500K-1M USD.

Period.

Having said that - there are things you can do to improve your odds - like having a great founding team, building a prototype and having users, and maybe having some revenue already in your company.

I feel like I'm trying to answer the question "if I learn game, how many chicks will I bang in my first 6 months" - without having any information about who you are, what you bring to the table, what your experiences are, if you have a prototype/MVP/beta built already, if you have some personal capital you can use to spend in bootstrap mode, if you have a CTO partner, yada yada yada....

....unless I grill you for about half an hour on skype I can't give you, or anyone else here, a good answer to this question.

I can only say that it will be difficult for everyone but you can do a lot of things to make it incrementally easier for yourself.

This is a GREAT article about this exact topic:

http://paulgraham.com/fr.html

Say an entirely hypothetical person had several years experience in various businesses, an ok but not earth-shattering ability to program and high level qualifications (Masters Level) in a different field, would venture capital and the like be open?


Sure. I would still strongly suggest you to find a CTO - the kind of guy who has been hacking since he was like 9 years old and lives and breathes technology. If you are a CEO who happens to know how to code a bit, it certainly can't hurt you.

I am not sure if your question is specific to Singapore or VC in general.

To be clear - I am not an expert in this area, nor am I a venture capitalist - I have just been through this experience before and I am going through it again now so I can comment upon it with some level of intelligence, albeit highly specific to the team I was working with and the VCs we were working with.

Your business experience and masters degrees certainly won't hurt. It won't necessarily help you but it'll show that you aren't some random nobody.

It would help, in theory, if the startup you were tackling was related in some way to the area in which you had a masters. You could use this to justify the fact that you might have domain expertise that could give you a competitive edge.

I personally don't believe this, as Travis Kalanick was never a taxi driver and Joe Gebbia was never a hotel owner but they massively disrupted their respective incumbent industries.

However, what is objectively true is often not what is relevant or necessary in this context. Unfortunately, perceptions, frame control, and positioning in negotiations are often more important. It feels like game in a lot of ways, but you aren't going to end up having sex and it's far more tedious.

If said hypothetical person had a very basic understanding of Mandarin and basic programming knowledge and said, "I'll work on those until say, the second half of 2015" would you recommend that course? Or is it only for developers with loads of experience.


I don't think so. I don't think that you would ever become good enough with that background to become a full blown CTO who can manage server side, front end, full mobile stack, and all of the other initial early stage tech issues that might pop up.

I think that your time would be better spent convincing and impressing prospective CTOs to get on board. They will respect the fact that you've learned some programming and discuss engineering execution in terms they understand, as opposed to just being some neanderthal "business guy" MBA douche who just wants a code monkey to build his dream.

http://www.founder2be.com

http://www.angel.co

You can use these resources to start finding prospective CTO types. You should also branch out in your personal social and professional circles.

I've had two main tech CTO type cofounders in my life.

One was a pathologically lying sociopath who nearly fucked me out of $50,000 USD.

The other I would trust with all of my net worth and my life.

You need to work on small projects together with your prospective CTO to make sure that you can trust this person on both a personal level as well as a competency level. The fact that you have learned some technical skills will enable you to sort out, to some extent, if this guy is competent in regards to his alleged tech prowess.

I lucked out in a huge way with my current CTO partner. I can't teach you how to luck out the way I did, except to tell you that you should constantly be networking and drawing talented people in your life.

If you are a technical hacker nerd guy reading this, then the opposite holds true - try to draw killer sales closers into your life to complement everything that you do not have.

My two strongest talents, by far, are sales and recruitment. As such, I spent a lot of time and energy surrounding myself with technically gifted people and detail-oriented people to compensate for those areas in which I am weak.

And what would you say about the ideas themselves? I'm working through the companies you've provided and taking notes. Would you say the ideas have to be super unique? If not (or even if so,) what are the important factors when preparing prototypes of products? (Delivery, marketing, and the like.)


Again - are you talking about Singapore or Silicon Valley? They are quite different ecosystems with different preferences.

Having said that - you absolutely do not have to have unique world changing ideas.

Read "The Millionaire Fastlane" - the guy created and sold Limos.com - it was hardly a new idea, even at the time he did it, but he ended up cashing out.

If you can do something someone else is doing, but different and WAY better, then you can do that.

The most important thing, by far, is that you are solving a real problem for people. That's it. I spent two years of my life chasing fake problems and trying to convince people that they had those problems because, in my mind, they did.

That's total nonsense and bullshit. Think about an audience or demographic that, ideally, you currently belong to and whose problems you understand deeply.

For Mark Zuckerberg that was Harvard students. Then it was the ivy league, then it was all US universities, then it was everyone in the world.

Airbnb was only for people going to local events in specific cities. Then it was for everyone who wanted to sleep over and get a more authentic experience. Today, you can rent a treehouse or a submarine or an igloo on Airbnb.

IMO you should start narrow and solve a specific problem really well for a small amount of users. From there you can scale up. Most explosive tech startup success stories tend to follow that path.

Please refer to this startup class thread if you are looking for specific resources that will give you a framework.

In particular, you should do Steve Blank's Udacity course called "Lean Launchpad" if you are looking for a framework for startups. This will answer most of the questions you seem to be asking me about execution.

For the record, nothing I am saying here is new or innovative. I am basically parroting things I've learned from:

-Y Combinator and Paul Graham
-MJ Demarco
-Lean Launchpad, Lean Startup, Steve Blank, Eric Ries
-Various other startup stories

None of these are my original ideas. I'm just reacting with information I've read from other startup juggernauts that I am following in my own path right now.

Sorry if you've answered these questions and I'm being dense/have missed them. Working quite hard on some stuff and this is my coffee break.

NP. It's good to see that you seem pretty serious about execution. If you get to the point where you have a CTO on board and a working prototype with beta users, holler at me.

[OSL]

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Oh and Kitsune - one more point I wanted to add is the following:

IMO the best position to be in when it comes to fundraising is to have built a product that could scale and grow whether or not you raised venture capital funding. The onus is on you to prove the concept, get users, and have a real product built.

As I said - you COULD show up with nothing but a powerpoint but you'd be spending a lot of time and energy in a weak negotiating position and end up giving away more of your company than you should.

This is a catch 22 situation because it's difficult to use your own capital to build and market a beta product to the point where you know that you don't even need venture capital but raise it anyway.

But then if you can succeed without the venture capital, then why take it on?

Venture capital is really just fuel. You'll be able to hire some devs and designers to ease the workload for your CTO and be able to have a bit more cash for marketing spend. You might be able to move into a better office.

However - once you take that money, a timer starts ticking off. Your investors invested in you because they expect a return, so now you have to answer to them as well.

The answer I gave you is analogous to you asking "what is the best way to get women to date me?" and then having me answer "become the type of man they want to date" - I know that it doesn't help you too much. But it's the reality of how this works.

Your time is precious so you want to enter VC negotiations from a position of leverage and power. Either way - whether you plan to raise capital or bootstrap the entire way - you will have to build a product people want that they will pay money for - and then figure out how to bring that to scale.

VC funds will only help you move faster but it will also put a hurdle at the end of your journey that you need to leap over so that you can provide an ROI for your investors.

[Kitsune]

Hey, thanks again YMG.

That's a boatload of information you've given me to work through. Am going to start with the Paul Graham essays, then work through the links in the Y-Combinator thread, then through the rest of the material.

Quote:

The answer I gave you is analogous to you asking "what is the best way to get women to date me?" and then having me answer "become the type of man they want to date" - I know that it doesn't help you too much. But it's the reality of how this works.

No worries about this. It was only after reading your reply that I thought, "I can't believe my questions are so generic."

I understand the point entirely. "Venture Capital is Fuel" is a really apt analogy for it. Think about the business plan, develop the prototype, get feedback, turn it into a fully fledged service. Those are steps to start with, and VC is something to happen after the the first three.

I've worked across the board in various industries - I started with e-commerce stores in various niche markets, then white-labelled. Have done web-dev and SEO and the like as welll. Currently I'm working on educational/language related stuff. So I can see plenty of different avenues for apps/tech stuff for any of those. It's just drilling down and seeing what can and should be automated to best effect.

Anyway, thanks for the materials and the answers you've given. Will sign up for the courses and start putting together ideas to try out. Will update you when I get something started.

[OSL]

(10-30-2014 08:58 AM)Kitsune Wrote:  

I understand the point entirely. "Venture Capital is Fuel" is a really apt analogy for it. Think about the business plan, develop the prototype, get feedback, turn it into a fully fledged service. Those are steps to start with, and VC is something to happen after the the first three.

Fuel can help propel you but it can also burn you alive and destroy you.

Some VCs lack integrity and are manipulative sociopaths who will try to fuck you on every single line of your contract.

Others are merely stupid and have no idea how to build a business or advise those trying to build a business.

Very few of them are both competent and trustworthy. The ones that are will probably not invest in an unproven team with nothing more than a powerpoint. This is why you should have a beta prototype built.

If you have zero startup experience to use to leverage yourself in negotiations, if you have a working prototype with users, that'll immediately give you an advantage and answer a lot of questions.

Institutionally, their job is to get as much of the company from you as possible, so you should not enter the negotiations thinking that they are your friend.

At BEST they are only looking out for themselves....and if your goals happen to align with theirs, well that's superb.

I know many founders who regret taking capital from the specific VCs they took capital from....and many others who would not have taken capital at all if they started over.

It's not a decision to take lightly.

This is why I think that it's better to become ramen profitable before taking on capital. This way you aren't forced to take on a deal that you don't necessarily need to and begin taking on the habits of spending money instead of developing the habits to make money.

Jason Fried and DHH from 37signals discuss this topic in great detail.

Singapore/Asian tech startup venture capital is often "dumb money".

That is, a lot of silicon valley VCs will be guys who have had startup acquisitions in the past and then transitioned into the VC/mentorship type role.

In contrast, VCs in Asia often seem to be (I might be wrong) guys who networked their way into VC funds after working at JPMorgan or Goldman Sachs for 10 years and have no clue how to build a business.

Tread carefully.

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[Phoenix]

As Felix Dennis put it: 'Ownership! Ownership! Ownership!. 'To become rich you must be an owner. And you must try to own it all'.

Of course your company will be more attractive to a VC if it already has revenue. Of course a VC wants to join in on any venture which is at the 'scaling' stage. That's a fantastic deal for them. However its not such a good deal for you. Ideally if you are in the 'scaling stage' you would want to be financing with debt and retained earnings as much as possible. Although I'm sure this is easier said than done.

[OSL]

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This list of Singapore VC firms might be useful:


https://www.techinasia.com/directory-of-...singapore/

From the article:

"Venture capital firms have entered Singapore in droves, which means internet startups here can look forward to a wider variety of funding options. Here is a list of venture capital firms with a presence in Singapore that are actively investing in startups in the series A rounds and above. It includes funds that are supported by the Singapore government through the NRF TIS scheme and the ESVF initiative."


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[magellan]

Hey YMG. Gonna dig into some of your past posts as you seem like a wealth of information.

I'm very familiar / well read on the startup scene and the resources you post having worked in VC, at a startup, and some amateur web dev experience.

I'm curious to learn more about your past experience and how you sell yourself as a non technical founder.

And yes, lots of dumb money out there. I personally believe the window will be closing soon so might as well get it while it's hot...

(10-31-2014 04:18 AM)Phoenix Wrote:  

As Felix Dennis put it: 'Ownership! Ownership! Ownership!. 'To become rich you must be an owner. And you must try to own it all'.

Of course your company will be more attractive to a VC if it already has revenue. Of course a VC wants to join in on any venture which is at the 'scaling' stage. That's a fantastic deal for them. However its not such a good deal for you. Ideally if you are in the 'scaling stage' you would want to be financing with debt and retained earnings as much as possible. Although I'm sure this is easier said than done.

Yep. Tech startups are a different breed. I wouldn't go into the startup scene hoping to get wealthy beyond your wildest dreams. Most exits out there are okay for the VCs, aggressively mediocre for the founders, and complete shit for the employees. A venture backed startup is the right course of action if you have a product that needs to scale very quickly or needs to see huge growth before being monetized. You're required from the very start to think big.

"Lifestyle" businesses don't get enough credit in this scene.

[OSL]

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I'm curious to learn more about your past experience and how you sell yourself as a non technical founder.


In short most of my experience with startups has been failed ventures, burnt bridges, occasional success turned into income streams, and the tenacity to keep getting up after taking a beating.

If you need more detail than that then we can discuss over PM.

If anyone here has ever gotten the idea that I am some internet billionaire sitting on a beach in a bentley, you are very wrong. I am still slogging it out and any valuable information you might read from me is either something I've learned from people like Paul Graham or things I've learned from failure.

---

In regards to selling myself as a non-technical cofounder:

The reason I would only approach VC once I already had a beta prototype with traction from users is that I would remove the problem of having to sell myself.

I would hate to be in a position where I have nothing but a powerpoint and I'm feebly supplicating and trying to convince some VCs that some harebrained idea that is certain to change within a matter of weeks is a shooting star. That's a position of weakness.

I'd rather be in a position where I've funded my own beta, gained traction with users on my own, and am able to say "this thing already has legs and you're welcome to come on board on our terms" - and if that doesn't work, well, just keep bootstrapping.

I am heavily biased from my negative experience with VCs, but IMO they are basically just monkeys with cash.

If a non-technical founder is unable to build a founding team and get enough beta users to prove the concept then he doesn't deserve to get any capital. That's my point of view.

As such, I believe that a non-technical cofounder should prove his worth by assembling a team and then getting a beta built that has beta adopters/users. All questions about his value to the company are essentially answered if he can do this, IMO.

Thus, my answer to how you should sell yourself as a non-technical cofounder is to build the team and get users for the product - and then not have to sell yourself at all, ever, to anyone.

Again - I am only saying all of this because you asked.

I'm not some business/startup genius whose mantras you should blindly follow. My entrepreneurial career has been defined more by cautionary tales and failures rather than successes and champagne.

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[oilbreh]

So you just have to find some full stack developer wiz like wozniak and then play the steve jobs role...
I have no experience in this but been toying with it. I guess I doubt Id be able to convince someone like that to work for me for a non funded unproven start up when they can make a easy comfortable living with just one of their skillsets. My game plan is to at least get to the point where I can make a functional demo, mabye bs the server side and some complicated features, then try to go from there.