The following “Frequently Asked Questions” will give entrepreneurs and investors an overview of FirstFloor Capital’s background, investment preferences and approach as well as some brief funding application processing procedures. For further enquiries, investors and entrepreneurs are welcome to send an email or contact FirstFloor Capital at 603-2093 4044.



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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