How you have benefited from it?

I have become more aware of the fund raising ecosystem and requirements.

Things I learned about funding, that is VCs and Angel Investors:

VCs:

1.    VC generally invest $500,000 to 3 million in series A
2.    They will generally take 33% share
3.    They look for teams and the story behind the idea
4.    They look for 5-7 years business plan
5.    How to approach them? They prefer [1] referrals from people [2] short, and succinct presentations of not more than 12 slides
6.    They are looking for Partnership and less of “just paying the bills”
7.    Low burn rate is a must

ANGELS: There are 2 types; [1] sophisticated Angels- offers advice and [2] non-sophisticated Angels – no advice. Their criteria are generally the same as VCs. The diff is that they invest less. Usually lower than $500,000.

Highlights of the events, e.g. which session do you like most or which speaker(s) has inspired you most and why?

The most notable event was the “Be The Change: What Does It Take To Become a Social Entrepreneur?” session. Premal Shah, Founder of Kiva.org was the speaker and he shared his experience of leaving his high pay job in Paypal and starting his non-profit startup – kiva.org

Kiva.org’s idea is simple; Kiva.org is mainly the intermediary between a budding entrepreneur in a developing nation and an investor. Budding entrepreneurs get access to interest-free capital and investors get a chance to help an entrepreneur succeed. Kiva.org does not guarantee return of investment, but from the statistics he provided, over 90% of the money provided to entrepreneurs were returned and recycled (Reinvest on another local entrepreneur). This led people to wondering how they actually sustain the business when they are not technically getting any revenue? That is because they rely mainly on donations and goodwill of donors to give “tips” for every financing transaction to a local entrepreneur. By doing so, they managed to cover cost and sustain the business.

Kiva.org is following the Wikipedia business model where they rely mainly on goodwill and donations. This is something risky but I believe if netizens see an idea that is noble, they would want that noble idea to survive. Until today, Wikipedia is doing well and is the first thing people use to understand concepts or conduct basic research.

In a nutshell, I was inspired by his drive to quit his high paying job at Paypal and follow his dream and passion. This is especially difficult in the Singapore context when families emphasize on getting good grades and securing high paying jobs.

I guess that’s why TIEcon’s message was “Be a Bold Entrepreneur.”

Noted! Idealistic? Yes!