Monday, February 20, 2017

Investment, considered from the initial start-up



[Korea financial newspaper] Technical Feasibility be equipped Investment preparation

Crowdfunding after the initial VC standing reinvestment strategy

While entrepreneurship is becoming increasing funding is a big issue. Especially for entrepreneurs with good ideas and technology it is not easy to finance the bank loan scheme. The government is switched 'investment in the loan, the funding for start-ups as well as in view of this a few years ago and also expanding financial technology.

Nevertheless, the financial difficulties of the start-ups are still far. Founders are not seeking a "technology development has had no money to expand the business." "Where to buy is was shown film production fund," "public relations and lack of marketing funds," said a complain "This financing is difficult do not have collateral."

More than 95% of small businesses rely on financing by bank loan or credit guarantee. Investment bank loans to SMEs endures to 576.6 trillion won in 2015, based on the balance is only one level of 100 minutes. Fortunately, the last three years there is an increasing number of technologies and ideas to invest in outstanding companies and the initial investment or the fund size to update the highs.

Last year, the new venture will invest 2 trillion 150 billion won, a new venture fund was recorded at 3.2 trillion won. Last February 13, the investment industry, including Small and Medium Business Administration gathered there were 2.3 trillion won this year, new investments, new fund 3.5 trillion won in the event that promised to achieve. In contrast, the United States and China as a negative growth of venture investment in Korea is continuing to grow.

However, it is equally important investments in the amount of marketable ideas should be based on a good technology and a good start-up investment.

To do this, start-up companies are equipped with the feasibility of the technology should be ready for pre-investment. In addition, from early stage start-ups to visualize the item if you have a good business plan should worry even the 'investment'.

Given that the market size or type of business, money spent, such as finding the right types of investments and investors is needed. Shall define the type of investors in view of the accelerator (or start-up organizer), crowdfunding (online microfinance investment brokerage), angel investors, micro-VC, venture capital funds, etc. varies, the size and time required and the like.

The initial nominal utilizes the 'crowdfunding'. Funding from the small to the large number that began in January 2016 has 13 brokers to invest in online Founder is registered with the Financial Services Commission. His company is equipped with a 500 million capital investment in skills and Co. won over financial, personnel and physical facilities. Professional investors and retail investors 10 million won per company (20 million won per year) may invest 2 million won (5 million annually won) per company. Mainly suited to the amount of around 100 million won from 30 million won. 116 companies (121 cases) over the past year was 18 billion won from this financing 7,000 people.

There is an accelerator for start-ups. From start-up stage by the 'small business Act' establishment of the Small and Medium Business Administration Planning, Investment, a company that promotes growth through the nursery. The system introduced in the March 11, 2016 Capital 100 million won can have a self-2 (non-profit is 50 million won), and professional staff. The four companies were registered in January 2017 for the first time.

They invest more than 50% of your initial investment founder, and provide professional services such as day care for more than three months or consulting advice and training.

Angel investing is suitable for investment of around 3 billion. There is a form of angel investment clubs and individual combinations. The former is more than five members, the latter is composed of private equity investment is less than one in 49 billion won (one account, one million won) over a party registered with the Small Business Administration.

There is also a 'professional angel investors, venture three years or more special investment law ₩ 100 million, 3-year entrepreneurship or corporate employment career, the person is at least two years investment review services. 76 people are registered in the angel investment support. When you receive investment from angel investors it is a professional venture.

'Micro VC' has to be due to Venture Co., Ltd. Special-shaped and private investment combined. Electronics experts if two people and is the capital of 500 million won no established limit per investment. The latter and the investment in 300 million won limit is specialized Angel, a company specializing in technology start-ups, such as accelerators Angel Doll law. Invest small amounts as an intermediate step of angel investors and venture capital company founded in early multiple companies.

Venture Capital is a financial company of SMBA new technology projects competent venture capital companies and financial responsibility of the Commission. Both the professionals in the electronic two people are introduced to the capital of 5 billion won in 1986 and currently has 117 companies established requirements. The latter is 20 billion won in capital investment (jeoneopsa 100 billion) and currently has 24 companies.

It is formed by more than 90% of the venture capital or a combination of Korea Venture Investment Fund, combining new technology, agri-food combinations, material parts specialist investment partnerships, private investment partnerships including funding and investment in specific areas.

Founder in various types of investments it may initially attract tens of millions of won through crowdfunding and successfully re-write strategy to increase investment recipient after hundreds of millions to billions of won from won from venture capitalists and angel again. There are also Investment Limited Industry Finance, insurance, real estate, hotel, restaurant, ballroom, golf courses, ski resorts, casinos, and other personal service activities correspond to this.

Despite investments in low-founder and technology and growth companies it is not easy to get investment. If you do not have enough preparation may also fail to attract investment or to take a long time. Therefore, squeeze the investment strategies of both worlds can get the result of the financing is also recognized even if proactive financial feasibility. Founder of investment should reflect from the creation of a business plan.



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