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July 2016
Acceleration Best Practices
in Southeast Asia
Douglas Abrams
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Douglas Abrams
About the facilitator
• Wharton MBA
• JP Morgan – Vice President IB Technology, GM Internet Marketing
• Parallax Capital Mgmt – Co-founder and MD Private Equity
• Extream Ventures – Co-founder and MD S$20 million seed fund
• Expara – Founder and MD IDM Ventures Incubator, advisory, training
• NUS – Adjunct Associate Professor, Business School, Entrepreneurship, Sasin – Visiting Professor, Venture Capital
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Douglas Abrams
Regional accelerator plus VC fund
Ho Chi Minh City
Tokyo
Kuala Lumpur Singapore
Bangkok
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Accelerator versus incubator
Provide start-ups with mentorship, network, space and support
Open application process
Time-limited or open-ended
May or may not invest
Business model: fees (plus investment returns)
May or may not have demo day
Incubator
Provide start-ups with mentorship, network, space and support
Competitive application process
Time-limited and batch based
Invest in start-ups
Business model: investment returns
Demo day
Accelerator
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Types of accelerators
• Venture accelerator – focus on financial return
• Corporate accelerator – strategic/financial return
• Sector-specific accelerator – healthcare, fintech
• Accelerator plus VC fund – post-graduation investment
• Others: co-working spaces, start-up academies
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Accelerator investments
• Initial investment - $10K - $50K for 5-10% equity
• Equity, convertible note, SAFE or equivalent
• Post-graduation investment - $250K-$500K for 10-25% equity
• Provided by accelerator plus VC and/or by affiliated investors
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Accelerators in the funding process
Founder’s Capital
Seed/Angel
Series A, B, C
Mezzanine Pre-exit Exit
OM F,F&F
AcceleratorsIncubators Seed funds VCs
VC hurdle rates 60-100% 40-60% 20% R&D Establishment GTM/Rollout Accelerated Expansion Maturity Enablement growth
PE, Financial institutions
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Accelerators – historical perspective
1960 1970 1980
Ris
k ca
pita
l
Bra
nds 1990
Em
ergi
ng fo
cuse
d
Inte
rnat
iona
l
Sup
er a
ngel
/ M
icro
VC
Acc
eler
ator
s
Pla
tform
Cos
t of s
tarti
ng a
tech
nolo
gy s
tartu
p
Num
ber o
f see
d-fu
nded
dea
ls
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Success rates of accelerators
2015 Global Best Practices Report on Incubation and Acceleration - Capria Ventures LLC
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Success rates of venture-funded startups
10 years after investment. Data from Sand Hill Road Econometrics. Companies received first financing before 1 January 1999. First non-seed round investment. Returns are gross - before fees and carry
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Accelerator success rates by type
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Factors for start-ups selecting an accelerator
• Venture or corporate
• General or sector-specific
• Size of investor network
• Integration with and access to the community
• Track record of successful fundraising by previous batches
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Contact us
• Douglas Abrams
• Expara – [email protected] – www.expara.com
• You can also contact me on: – Facebook, Linked-In, Line,
Whatsapp, WeChat
• Singapore mobile: 65-9780-5381
Singapore HQ Block 71 Ayer Rajah Crescent #$02-10/11 S139951 Regional offices: Bangkok, KL, HCM, Tokyo
