Ateneo Graduate School of Business

Marketing Management MMMARKMAN

Marketing Plan for Narra Venture Capital

Submitted to: Prof. Nicolas Lansang Jr. Submitted by: Cenon Oriel On November 8, 2010

Table of Contents
Executive Summary ........................................................................................... Company Background Company Description ........................................................................................... Management Team ........................................................................................... Situation Analysis Current Company Situation Industry Analysis ........................................................................................... Market Summary .. Competition .......................................................................................... Product Offering .......................................................................................... Keys to Success .......................................................................................... Critical Issues .......................................................................................... Marketing Strategy Mission .......................................................................................... Marketing Objectives .......................................................................................... Financial Objectives .......................................................................................... Target Markets ......................................................................................... Positioning ......................................................................................... Strategies ......................................................................................... Marketing Mix ......................................................................................... Financials Sales Forecast ......................................................................................... Expense Forecast ......................................................................................... Profit Forecast ..... Controls ......................................................................................... Implementation ......................................................................................... Tables . 3 4 5 6 6 7 8 9 10 10 11 11 11 11 12 12 12 13 13 14 14 14 15

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Narra Venture Capital

A. Executive Summary

The Philippine venture capital industry is still relatively small but growing significantly faster than the industry average in Asia. The Philippine is a relatively small player in the Asian venture capital industry representing only 0.4% of total Asian investment and 1.3% of total Asian venture capital funds. However, the growth of both venture capital investment and the number of funds in the Philippines far surpasses the growth rates for the entire industry in Asia. Narra Venture Capital is a Filipino owned, Philippine-based company in the business of venture capital investment and management. It currently manages two funds, namely Narra Fund I and Narra Fund II with a combined Funds of US$75 million that have been fully invested in several companies that has high capital appreciation potential. There are present opportunities for the company to generate higher revenue from existing portfolios but fund limitations constrained that company from doing so. It is by these limitations that Narra Venture Capital sees a need to put up the third fund which will be called Narra Fund III will have a fund size in the range of US$75 million to US$100. Funds will be sourced from the companys target market the companys existing investors and new investors that are interested in technology related companies that are coming out with a new product or a new invention that has great potential. Narra Venture Capital will deliver superior investment returns to the funds investors by investing in early stage technology companies that establish dominant franchises in large markets using their differentiated technologies and superior management experience. Narra Venture Capital will position itself as the leading technology Venture Capital for the Philippines and select areas of ASEAN and will have the following objectives: To be the leading technology venture capital for the Philippines, Vietnam and select areas of ASEAN and to catalyze more technology development in this developing areas. To take and customize the latest, proven technologies in the worlds best research centers and apply them to the Philippines and other ASEAN countries. To achieve a unique position in the VC industry in the Philippine, Narra Venture has developed and applied strategies that will ensure high returns to investors. While industry offer an average rate of return of 48%, Narra Venture will provide its investors with a higher return of 90%-120% at the end of ten year period. Narra Venture Capital Management will be the managing partner of the VC and will be responsible for the marketing activities of the fund with specific focus on selecting and qualifying Page | 3

prospective investors/limited partners to the fund. It will also be responsible in monitoring the companys performance with respect to revenue and expenses and investors satisfaction. satisfaction B. Company Background

Company Description Narra Venture Capital is a Filipino owned, Philippine-based company in the business of venture capital investment and management. It is a technology-focused company that creates, invests in, operates, and motivates synergies in companies that use computing, communications and bio technologies to address large, cross-border and potentially profitable opportunities. It is geared towards making equity and equity related investments in emerging companies having sound business fundamentals and a promising potential to generate significant medium to long term capital appreciation. Founded on Jan 17, 2002, Narra Venture Capital is managed by Dr. Francisco Paco Sandejas, one of the most experienced persons in technology venture capital investing in the country, and is affiliated with Tallwood Partners, LLC in Silicon Valley. Dado Banatao is a founding limited partner of Narra Venture and brings to this venture his reputation as one of the worlds best serial entrepreneurs in the field of computing and communications. Narra Venture has access to the committed and fully allocated venture funds of the Philippine leading technology investors, including Ayala Corporation with its Vice Chairman and biggest ICT advocate, Jaime Augusto Zobel de Ayala. The partnership of Dr. Sandejas, Tallwood Partners and the support of the Philippines best technopreneurs makes for the best team for tech transfer and leverage in the Philippines. Narra Venture is undertaking projects in the areas of IT research and development, and knowledge-based and computer-enabled support service, including engineering and architectural design services, consultancies, and others. Narra Venture desires to leverage on its existing portfolio of client companies to be their partner and representative in the Philippines and the ASEAN Region. Among the companies that Narra Venture is currently representing incountry include Stratpoint Techonologies (a software outsourcing services company), Xepto Computing (a thin-client infrastructure company), and Alphion Corporation (a GPON technologybased systems company)

Management Team

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Francisco S.A. Sandejas, President and Managing Director of Narra Venture Capital, completed his M.S. and Ph.D. in Electrical Engineering from Stanford University in California and completed his BS degree in Applied Physics from UP Diliman where he graduated Summa Cum Laude. He was awarded as one of the Ten Most Outstanding Students of the Philippines for the field of Science. He is formerly the Vice President of H&Q Asia Pacific, another venture capital fund management company. He is a co-inventor of the Grating Light Valves, a silicon MEMS device that is licensed to Silicon Light Machines (now acquired by Cypress Semiconductors.) He also participates on the boards of non-profit organizations like GILAS, DOST, De La Salle University, Venture for Fund Raising and used to be part of the IT and eCommerce Council (ITECC) of the Philippines and Digital Philippines Foundation. Katrina Sandejas Maosa, Narra Venture Corporate Secretary, is a B.S. Management graduate of Ateneo de Manila University. She pursued higher studies in the same fields at the F.W. Olin Graduate School of Business at Bobson College in Wellesley, M.A. She is currently the General Manager of Philstar.com and General Manager of Diversified Holdings, Inc. Jose S. Sandejas, Director of Narra Venture Capital, is a licensed Chemical Engineer and has a Ph.D. in Materials Engineering which he obtained from Rensselaer Polytechnic University of Troy in NY USA. He is currently the Chairman of Pilipinas Hino, Inc., Pilhino Sales Corporation, Soloil, Inc., Diversified Holdings, Inc. and DHI Trading Inc. He also currently serves as a Director of East West Banking Corporation, Insular Investments & Trust Corporation, Asian Hospital Inc. and TCGI, Inc. Antonio Ernesto R. Tarroza, Jr., Vice-President, has a Bachelor and Masters Degree in Electrical Engineering obtained from the University of the Philippines. Prior to joining Narra Venture, he had worked with Sun Microsystems Philippines, Inc. (SunPhil) as Senior Team Lead/IT Architect and Partner SE Head and with the Advance Science and Technology Institute of the Department of Science and Technology as Chief Science Research Specialist. He is experienced in technical management, partner enablement, product, project and business development. Cenon M. Oriel, Finance Director, is a Certified Public Accountant and is an MBA for Middle Managers Student at the Ateneo Graduate School of Business. He has worked with Datamine Corporation, (a wholly-owned subsidiary of Marsh McLennan) and TNS Trends as Finance Manager prior to joining Narra Venture. He has relevant experience in finance, accounting and audit works from previous works with small and medium-size companies.

C.

Situation Analysis

Current Company Situation Page | 5

Narra Venture Capital currently manages two funds, namely Narra Fund I and Narra Fund II. The first fund amounting to US$25 million was established in 2002, is now fully invested and is the process of harvesting its investments. The second fund amounting to US$50 million was established in 2007 and is also fully invested. At present, there are about six (6) investment portfolios that show potential capital appreciation and a viable exit strategy but need additional bridge and equity fundings to support its growth strategy. Because of the fund limitations of Fund I and Fund II, Narra Venture Capital cannot explore and exploit these opportunities that would surely benefit the existing limited partners/investors of the two funds. It is with this limitation that Narra Venture Capital sees a need to put up the third fund which will be called Narra Fund III. Fund III will be created to make equity investments to Fund Is and Fund IIs current portfolios that demonstrate a viable exit potential (through IPO and acquisition).

The Venture Capital Industry Venture capital originated in the United States after World War II but has been only a fairly recent phenomenon in Asia with the exception of Japan. However, in spite of its relative newness, venture capital has played increasingly important role in Asia. As of 2008, total cumulative venture capital funds in Asia exceeded US$129 billion (an increase of US$23 billion from 2007), which represents over 1,000 venture capital firms in 18 Asian countries (The 2009 Guide to Venture Capital in Asia). According to The 2009 Guide to Venture Capital in Asia, venture capital was formally introduced in the Philippines in the 1980s when bank-related venture capital funds were established by the government. These funds were small (US$250,000 capital under management), focused primarily on short-term debt, and are not currently active. The first domestic institutional venture capital fund was establish in 1989 under the sponsorship of the Asian Development Bank, International Finance Corporation of the World Bank, Commonwealth Development Bank (U.K.), and Germanys Deutsche Entwincklung Gesselschaft (The 2009 Guide to Venture Capital in Asia). Hambrencht and Quist, a major American venture capital firm, set up a US$20 million fund in 1987 and continues to be an active player in the Philippines. The Philippine is a relatively small player in the Asian venture capital industry representing only 0.4% of total Asian investment and 1.3% of total Asian venture capital funds (The 2009 Guide to Venture Capital in Asia, 2000). However, the growth of both venture capital investment and the number of funds in the Philippines far surpasses the growth rates for the entire industry in Asia. From 2001 to 2008, the growth in the Asian venture capital pool for investment was 215% while growth in the Philippines was 1,725%. The number of venture capital funds increased 3.25 Page | 6

times for Asia and 13 times for the Philippines during this time period (The 2009 Guide to Venture Capital in Asia, 2000). The Philippine venture capital industry is still relatively small but growing significantly faster than the industry average in Asia. Unlike the industry as a whole, the Philippines, did not experience negative growth in capital accumulation from 1996 1997 because of the financial crisis. Market Summary There are two recent trends in venture capital activity in developing countries including the Philippines. First, has been a significant increase in activity, followed by a recent significant decline. Second, there has been a trend towards investing in more early-stage investments. Venture Capital investments increased in developing countries because many developing countries have implemented economic reforms, which have resulted both economic progress and an easing in restrictions for foreign investors. Another reason is that developed countries have experienced a recent decrease in investment opportunities because of too much money chasing too few deals. In a survey conducted by the Asian Venture Capital Journal in 2009 venture capitalist described the Philippines venture capital industry as being relatively small in terms of both fund-size and investment amount per deal. Below is the summary of the Philippine venture capital industry characteristics as cited by venture capitalists.

(number of citations) 6 6

Frequency Characteristics
Relatively small venture capital funds and relatively small deals Consolidating smaller deals Entrepreneurs are less wary of venture capitalists Becoming more open to venture capitalists due to lack of bank support Increasing visibility of venture capitalists because of the recent dot.com boom Investing in more non-family business Lack of financial transparency of investee companies Networking and co-investing among the Top 5 venture capital firms Invest in family-controlled businesses Lack experience to write a business plan Venture Capitalists must help write the business plan Entrepreneurs have a limited understanding of technology Invest in entrepreneurs who have developed a Regional-focused (outside the Philippines) market strategy Minimal funding for early-stage ventures; high priority for funding expansion ventures. Page | 7

5 4 3

3 3 2

Wide diversity of venture capital firms Large Global firms, medium-sized regional firms, small local firms 1 Invest in U.S. connections Successful Filipino entrepreneurs in the U.S. who will transfer technology to the Philippines Source: Asian Venture Capital Journal (AVCJ) Competition There are 29 venture capital firms or similar-type operating in the Philippines according to the 2009 Guide to Venture Capital in Asia, including both domestic and foreign venture capital firms. Of these 29 firms, 14 are domestic, 15 are foreign and 10 are classified as independent venture capital firms (4 domestic and 6 foreign). The remaining non-independent firms are classified as corporate subsidiaries, non-governmental finance firms, merchant bank, investment company, government finance company, private equity advisory firm and a new venture incubator. Two firms were not classified. Not all 29 firms have made investments in the Philippines. As of 2009, 14 venture capital funds are active in the Philippines. Table 1 list the cumulative number of Philippine funds and the venture firms responsible to invest and monitor the investee companies(Fund Manager). Some of these funds have been totally invested and exits have taken place, while some of the more recent funds are only beginning to make investments or may not have made any investments. Of the 23 funds introduced to the Philippines during the past 20 years, 43% were developed locally and 57% represent an international/foreign relationship or ownership. The foreign firms are from Singapore, the United States, and Japan. By U.S. standards, the Philippine funds are relatively small averaging US 25 million compared to funds typically ranging from US$100 million to US$1 billion in the U.S. In Asia, the average size of a venture capital funds in 2009 is US$80 million, thus Philippine venture capital fund are small by both U.S. and Asian standards. Table 2 shows that Philippines venture capital is sourced primarily from corporations and banks and that 55% of total funds originates within Asia, mainly from the Philippines, and the remainder comes from the West. In 2009, Philippine venture capitalist invested the majority of their funds in investee companies in expansion stage with only 14% of funds invested in earlystage companies (seed and start-up). The investee companies were overwhelmingly Asian with almost 90% investments going to Philippine companies. Venture capitalists attempt to exit their investment through initial public offering (IPO), trade sales or management buyouts. According the 2009 Guide to Venture Capital in Asia, conducting an IPO on the Philippine Stock Exchange has been difficult because of a bad market in 2009, when only a handful companies have gone IPO. Recent trend has been for investee companies to go public on other Asian exchanges. In spite of the IPO exit difficulties, the 2009 Guide to Page | 8

Venture Capital in Asia reported that divestment in 2009 increased by more than 100% to PhP 500 million (US100 million). Product Offering Narra Ventures activities and corresponding sources of income can be summarized into the following: Investment Management and Consulting. Narra Venture sources funds and manages investment into companies around the world that demonstrate world leadership in computing and communication technologies. Narra Venture also manages investments into leading companies in software industries and on occasion in Clean Technologies. Technology Consulting and Representation. Owing to the success of the companies that it has facilitated into, Narra Venture has been appointed representative by the likes of Stratpoint Technologies, Xepto Computing, and Alphion Corporation. Narra Venture leverages off from the strength of these companies to come up with end-to-end IT solutions in response to customer pain points and seemingly complex IT requirements. It acts as trusted advisor to corporations by introducing to them its clients key technologies and solutions. Incubation Services. Aside from its many US partners mostly based in Silicon Valley, collaboration with partners like the Department of Science and Techonology, PEZA, local top engineering colleges, members of the industry groups (like Philippine Software Industry Association, SEIPI and AMCHAM IT Committee) and other entrepreneurs of the Brain Gain Network, Narra Venture incubates companies that conduct engineering development in the areas of advanced computing and communications. Technology Research, Development, and Consulting. A key role of Narra Venture to conduct research and report to all its partners, affiliates and advisers all the necessary information required to make sound investment, marketing and business decisions. Narra Venture has recognized that one of the largest deficiencies in the engineering and software industries in the Philippines is the lack of marketing and business knowledge from the best sources like Silicon Valley, Japan, and Europe. Through its already growing network of affiliated investee companies around the world, and especially from its partnership with Dado Banatao's group in Silicon Valley, Narra Venture will have the Philippines' best database and reports on which areas of computing and communications Filipino engineers should focus their efforts on. The wealth of knowledge acquired through this cross-border practice also allows the group to provide valuable market inputs to technology companies in the United States, around the world and also in the Philippines, thus enabling even more customized and improved solutions ideally for our environment. Keys to Success

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To ensure profitability and growth, Narra Venture Capital will strengthen its core competencies in indentifying the exploring opportunities in equity investment in companies with potential for growth and high capital appreciation. Among the success factors that Narra Venture Capital will have to consider are the following: A strong position to identify emerging companies and be their partners in growth. Partnership with well managed growth companies in Southeast Asia Investments in businesses with solid revenue models, strong management and potential for industry leadership. Investments in companies with clear resale potential or otherwise well-defined exit strategies.

Critical Issues In the 2009 Guide to Venture Capital in Asia, each venture capitalist were asked to identify and explain the major issues and challenges relevant to the industry. Shown below is the summary of responses in terms of the frequency that each specific challenge were cited by the venture capitalist. Maintaining a venture capital presence in the Philippines o Perceived poor investment climate/lack of opportunities o High currency risk for Western investors o Political instability o Capital flight out of the Philippines o Focusing on fewer industries Initial Public Offerings are limited as an exit strategy in the Philippines o Listing on regional stock market Lack of funds from institutional investors for a Philippine fund. Few innovations address global markets Entrepreneurs continue to over value their business in an economic downturn Government problems of corruption and bureaucracy o Weak legal system

Entrepreneurs do not want to share (sell) ownership with venture capitalists Entrepreneurs represent a small percentage of the population and tend to be too easily satisfied. Developing networks to find new investment opportunities The Philippine market for traditional product is small and over crowded The venture capital industry is young and undeveloped o Small number of venture capital practitioners o Difficult to learn the venture capital business o Lack of women venture capitalists Page | 10

D.

Marketing Strategy

Mission Narra Venture Capital will deliver superior investment returns to the funds Limited Partners by investing in early stage technology companies that establish dominant franchises in large markets using their differentiated technologies and superior management experience. Objectives To be the leading technology venture capital for the Philippines, Vietnam and select areas of ASEAN and to catalyze more technology development in this developing areas. To take and customize the latest, proven technologies in the worlds best research centers and apply them to the Philippines and other ASEAN countries.

Marketing Objectives To establish Narra Venture Capital Fund III through funds sourced from existing limited partners/investors and potential investors. Fund size is in the range of US$ 75-US$ 100 million. Financial Objectives Venture capital is professionally managed, equity money used to finance high-growth, small and medium sized, privately-held companies (investee companies). Venture capitalists raise and manage a fund, which is a pool of money raised from investors, to include institutions, pension funds and private investors. The objective is to generate significant long-term capital gains for the investors and the venture capitalist. A rule of thumb is a return in five years of 7 times on the first venture capital (a compound return rate of return of 48%) Target Markets Narra Venture Capital has already demonstrated its ability to provide an above average returns to its existing investors. Because of its track record, Narra Venture Capital believes that it can easily raised funds from its existing investors. Any unfilled funds will be offered to new investors. Target markets are as follows: Existing Investors. These are private companies and individuals that have been a partner of Narra Venture Capital since 2002. They include, Ayala Corporation (Ayala Group), FPH Holdings (Lopez Group), Tallwood Venture Capital (Dado Banatao), Orient Management Full (John Henry Lhuiller), Delfin Lazaro and Mikee Cojuanco.

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Private Corporations and Individual (including existing investors). Ideally, we will seek funds from private companies and individuals whose business interest do not conflict with that of the existing investors and portfolio companies. We will seek fund from investors that are interested in technology related companies that are coming out with a new product or a new invention that has great potential.

Positioning Narra Venture Capital will position itself as the leading technology Venture Capital for the Philippines and select areas of ASEAN. Narra Venture Capital will assume supportive roles in nurturing its investee companies by providing functional value added services in such areas as financial advisory, operations, and business development lingakes. Narra Venture Capital will also offer unique global opportunity for the Philippines to jointly develop software and other technology products with borderless teams (US, France, China, etc) using a Philippine Development Center.

Strategies To achieve a unique position in the VC industry in the Philippine, Narra Venture has developed and applied the following strategies. 1. Invest alongside other Technology and Semiconductor VCs. We capitalized on these tech and semicon VCs experience in conduction an extensive Due diligence and research process. 2. Assist US portfolio in exploiting Asian Markets. Operational and Financial growth of investee companies shall inure Narra Venture in the end through higher valuation of investments, hence, higher return. 3. Introduce investee companies to local industry major players for possible tie-up. This will provide market opportunities for investee companies. Marketing Mix Due to the unique nature of business and target market (investors), Narra marketing mix will comprised of limited approach to promotion, and customer service only. 1. Narra will stage various roadshow presentation to existing and prospective investors on the performance of the two previous funds as well as the prospect of the third fund which will highlight the high value appreciation quality of its existing portfolios and the above average return provided by portfolios that have already liquidated either through acquisition or IPO (initial public offering).

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2. Narra will provide excellent customer service by providing the investors with timely and relevant information on the status of investee companies and provide or offer opportunities for a possible tie-ups or business collaborations between investors and investee companies. E. Financials

Revenue Forecast Narra will have an average investment of $2 million per portfolio at 3 new portfolios per year starting year 1. As Narra has carefully selected its investment portfolio, an average return of five times the investment is expected. Venture capital will generate revenue from liquidation/exit of portfolio either through acquisition or IPO. Liquidation or exit will take place only on the fifth year. Presented below is a ten year revenue forecast for Narra Venture Capital
Narra Venture Capital Revenue Forecast (In US$'000) Year1 Realized revenue frominvestments Year 2 Year 3 Y r4 ea Yea 5 r 30,000 Yea 6 r 30,000 Yea 7 r 30,000 Yea 8 r 30,000 Yea 9 r 30,000 Year1 0 30,000 T l ota 180,000

Expense Forecast The fund will be charged by the managing partner with a management fee equivalent to 2% of the total invested fund from year 1 to 4. Management fee will be reduced by 0.25% every year starting year 5. Annual audit and tax fee of US$5,000 with bi-annual increment of 10% is expected to be paid to Ernst and Young. Other expenses will be maintained at US$ 3,000 per annum from year 1-10. Below is a ten year expense forecast for Narra Venture Capital.
Narra Venture Capital Expense Forecast (In US$'000) Year1 Expenses Management Fee Audit and Tax Fee Others Total expense 120 5,000 3,000 8,120 Year 2 240 5,000 3,000 8,240 Year 3 360 5,500 3,000 8,860 Yea 4 r 480 5,500 3,000 8,980 Yea 5 r 420 6,050 3,000 9,470 Yea 6 r 360 6,050 3,000 9,410 Y r7 ea 300 6,655 3,000 9,955 Y r8 ea 180 6,655 3,000 9,835 Yea 9 r 90 7,321 3,000 10,411 Year1 0 30 7,321 3,000 10,351 T l ota 2,580 61,051 30,000 93,631

Profit Forecast Given the projected revenue and expense above, profit for the ten year period will be as follows:

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Narra Venture Capital Forecast Income STatement (In US$'000) Year1 Realized revenue frominvestments Expenses Management Fee Audit and Tax Fee Others Total expense Net Profit Yea 2 r Year 3 Yea 4 r Yea 5 r 30,000 Yea 6 r 30,000 Yea 7 r 30,000 Yea 8 r 30,000 Y r9 ea 30,000 Year1 0 30,000 T l ota 180,000

120 5,000 3,000 8,120 (8,120)

240 5,000 3,000 8,240 (8,240)

360 5,500 3,000 8,860 (8,860)

480 5,500 3,000 8,980 (8,980)

420 6,050 3,000 9,470 20,530

360 6,050 3,000 9,410 20,590

300 6,655 3,000 9,955 20,045

180 6,655 3,000 9,835 20,165

90 7,321 3,000 10,411 19,590

30 7,321 3,000 10,351 19,650

2,580 61,051 30,000 93,631 86,369

The above projections shows that investors will be provided with a 90% -120% return on investments with is higher than industry average of 48%.

F.

Controls

The purpose of Narras marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance. Revenue and expenses Investors satisfaction Implementation Narra Venture Capital Management will be the managing partner of the VC and will be responsible for the marketing activities of the fund with specific focus on selecting and qualifying prospective investors/limited partners to the fund.

G.

Tables - Venture Capital Firms in the Philippines Fund Manager Year Founded Capital (P m)* Page | 14

Table 1

Venture Capital Fund

First Asia Venture Co. Small Business Guarantee and Finance Corp. Philippines Long Term Equity Fund Philippine Ventures I, Inc. Marsman Drysdale Group

Philippine Strategic Invest. I Philippine Ventures II, Inc. Emerging Markets Capital Holdings Inc. All AsiaCapital Growth Ventures I Vickers Ballas Philippines Fund Walden AB Ayala Ventures Co. Philippine Discovery Investment ICCP Ventures, Inc. Narr a Venture Capital Fidelity Capital SIP(L) Ltd AJOnet Holdings, Inc. The Argosy Fund Philippine Strategic Invest. II Philippine Ventures III JAFCO Asia Fund Ayala Internet Venture Partners, Inc. (Tranche 1) HatchAsia.com, Inc Cambridge Pacific Fund Ltd.

First Asia Venture Co. Small Business Guarantee and Finance Corp. ATSP Management Ltd. AB Capital & Investment Co H&Q Philippines Inc. Marsman Drysdale Group Clemente Investment Mgmt. H&Q Philippines Inc. IVI Advisors & Managers All AsiaCapital Managers Vickers Ballas Asset Mgmt Walden AB Ayala Mgmt Next Century Partners Ltd. ICCP Management Corp. BGN Ventures,Inc. Next Century Partners Ltd. Next Century Partners Ltd. AJOnet Holdings, Inc. Argosy Partners Inc. Clemente Investment Mgmt. H&Q Philippines Inc. JAFCO Asia (Japan) Ayala Internet Venture Partners, Inc. HatchAsia.com, Inc Next Century Partners Ltd

500.00 200.00

1987

608.00

1987 1989

US$20.00 US$ 6.50

1993 1994 1994 1995 1995 1995 1997 1998 2002 1998 1998 1999 1999 1999 1999 1990s 2000 2000 2000

US$ 4.44 US$15.00 500.00 US$20.00 US$35.00 US$20.25 US$43.00 340.00 US$ 75.00 US$ 8.00 US$35.00 US$11.00 US$182.0 0 US$21.00 US$40.00 US$11.60 US$25.00 US$50.00

*P 47 = US$ 1.00. Source: The 2009 Guide to Venture Capital in Asia

Table 2

- Venture Capital Investment Profile Page | 15

Sources of Funds

Geographical Sources of Funds (regions) 45% 40% 15%

Corporation 61% Non Asian Banks 15% Philippines Individuals 9% Other Asian Insurance Co. 5% Government 4% Others 5% Source: The 2009 Guide to Venture

Geographical Distribution of Funds (regions) Philippines 89% Other Asian 10% Non-Asian 1%

Investment by Stage

Seed Start-up Expansion Mezzanine Turnaround Buyout

2% 12% 68% 2% 6% 10%

Capital in Asia

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