What
type of companies does FirstFloor Capital invest
in?
We
invest mainly in high-growth and technology companies
with a significant market share in the industry.
FirstFloor
Capital will consider all technologies from various
industries including Information Technology, Energy,
Services, Communications and Life Science.
How
long does the decision to invest take?
Provided
that we receive sufficient information, the preliminary
decision to invest in principle may take approximately
10 days and subject to parameters such as pricing,
due diligence and other investment terms.
What
is the maximum investment amount per company?
FirstFloor
Capital's funds generally invest between RM1 million
and RM10 million per investment and as little as
RM10,000 for selective Angel type investments.
How
much equity will FirstFloor Capital take per investment?
Depending
on the company's valuation, our funds may take up
to a maximum of 49% equity. The typical investment
size is RM5 million.
What
does "high growth" and "technology"
mean?
"Technology"
has been interpreted in the broadest context. It
is not necessarily limited to Information Technology
or Biotechnology but applies to other forms of technology
ranging from services to manufacturing. Technology
is any mechanism or process that eventually improves
the quality of life in a significant manner.
In
true technological innovation, improvement in quality
creates Value-add in Multiples and not in marginal
increments. Companies in industries that promote
new technology in high-growth markets will have
significant advantage. "High Growth" companies
are defined as companies whose values increase by
at least 20% to 30% per annum.
What
is the advantage of having FirstFloor Capital as
my investor?
FirstFloor
Capital adds value through its network of investors.
Entrepreneurs can leverage in terms of business
and market network with FirstFloor Capital's investors,
loans and follow-on funding.
Investee companies have the added advantage of being
associated with established institutional investors
who form the core of FirstFloor Capital's investing
resources. These investors are passive investors
primarily looking for financial returns. Furthermore,
as long term investors, they provide the valuable
stability and reputation needed especially when
and if the company is listed.
Does
FirstFloor Capital consider MBOs and Buyouts?
Yes,
if there is a compelling high-growth story.
How
long is the investment tenure with a company?
Between
1 to 5 years, although follow-on funding is possible.
What
type of maturity is FirstFloor Capital looking for
in a company?
FirstFloor
Capital focuses on companies with unique competitive
advantages, sustainable value prepositions and a
strong management team. The companies would be beyond
the R&D stage, revenue generating, producing
identifiable inflection points in its growth and
at least on the verge of making profits.
Does
FirstFloor Capital invest in foreign owned companies?
In
general, no, but we do have an interest in investing
in Malaysian companies which are expanding overseas.
Other
than 'listing' as an exit, what else would FirstFloor
Capital consider?
We
would consider a Trade Sale. Aside from this, a
Buy Back scheme could also be one of the possible
exit strategies for FirstFloor Capital.
Can
I get subsequent funding from FirstFloor Capital,
if I qualify?
Depending
on the stage of the company, because of FirstFloor
Capital's institutional clientele, growing companies
can source follow-on funding from a broader network
of institutions who may already be familiar with
the company through its relationship with FirstFloor
Capital.
My
funding requirement appears to be higher than what
FirstFloor Capital can provide. Is there still a
provision to increase the amounts?
Aside
from FirstFloor Capital's own managed funds, FirstFloor
Capital's network of investors may individually
add their own funds to meet the company's funding
requirement.
What
type of documentation is needed for a preliminary
assessment?
Generally,
an initial discussion with the management is adequate.
This can either be by phone or in person. Subsequently,
if further evaluation is required, then an updated
business plan on the company would be favorable.
Who
is FirstFloor Capital?
FirstFloor
Capital was incorporated in June 2000 as a Technology
Investment Firm by five professionals with several
decades of collective experience in entrepreneurship,
technology and investment banking. FirstFloor Capital
manages both private and institutional funds and
has invested in technology companies ranging from
Nutraceuticals to Artificial Intelligence and in
stages ranging from seed to pre-mezzanine. Unlike
many other Malaysian VC firms, FirstFloor Capital
is partner run and owned.
FirstFloor Capital is a Securities Commission registered
Venture Capital Management company (2002-C/A0004/VCM/2002)
and is registered with Bank Negara Malaysia as a
Development Finance Institution (2201/809/3/18/ZAU)
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