| Press |
So You Wangled A Term Sheet
Tom Taulli June 26, 2006
FORBES. COM
Henry Wong has spent his 25-year career launching technology companies,
including SS8 Networks, IP Communications, XaQti Semiconductor, CNet
Technology and Combinet. In one deal, Wong received several term sheets from
venture capitalists. A term sheet is a three-page document that outlines the
components of the transaction--including the amount invested, company
valuation, type of securities (often preferred stock), protection rights, closing date
and other matters.
Read more:
http://www.forbes.com/entrepreneurs/2006/06/26/entrepreneurs-venturecapital-ter
msheets-cx_tt_0626taulli.html
Tom Taulli June 26, 2006
FORBES. COM
Henry Wong has spent his 25-year career launching technology companies,
including SS8 Networks, IP Communications, XaQti Semiconductor, CNet
Technology and Combinet. In one deal, Wong received several term sheets from
venture capitalists. A term sheet is a three-page document that outlines the
components of the transaction--including the amount invested, company
valuation, type of securities (often preferred stock), protection rights, closing date
and other matters.
Read more:
http://www.forbes.com/entrepreneurs/2006/06/26/entrepreneurs-venturecapital-ter
msheets-cx_tt_0626taulli.html
Copyright @ 2010 Diamond
TechVentures. All Rights Reserved.
TechVentures. All Rights Reserved.
CHINA: THERE'S A FORTUNE INSIDE THE GIANT COOKIE
Monday, April 11, 2005
Silicon Valley North, Toronto
By Henry Wong
Conditions are ripe for a market explosion that stands to dwarf even the
inconceivable Internet boom of the 1990's. Boasting a GDP growth rate between
12-15 per cent in coastal cities in 2004--and a surging population of 1.3 billion
fresh consumers hungry for innovation and services--China is an investor's
paradise.
China's sheer size and market potential has already enabled the country to
position itself as a powerful mover and shaker, with ability to shape industries
and global economies. Recent entry into the World Trade Organization and overall
improvement of its economic system has further pushed its initiative towards
being a superpower.
Fuelling concern that spending on fixed asset investments (a key indicator of
growth) are spinning out of control, the Chinese government recently
implemented means to cool down the market--but with little success.
Fixed asset investments rose 24.5 per cent to a total of US$50.9 billion between
the Jan-Feb 2005 timeframe.
The Market
Communications
On par with the global economy, it's not surprising that main opportunities lie
within the technology and communication sectors. China's communication
infrastructure is rapidly being built out and/or refurbished to handle the myriad of
bandwidth-intensive next-generation multimedia applications.
Since much of this new infrastructure has been built from the ground up--allowing
for the integration of advanced technologies such as 3G wireless and
WiMAX--service rollouts to consumers have been drastically reduced by up to 75
per cent.
Faster time to market, coupled with revenue generating services/applications
stimulates a competitive environment that drives future innovation.
Imports
Rapid demand for consumer electronics and digital entertainment has left
China's semiconductor market in a quandary. Currently, less than 20 per cent of
integrated circuit (circuits needed to run devices) needs are being met, forcing
China to buy from Europe and North America. Several tier-1 semiconductor
companies have foreseen this development and have made necessary
preparation and resources available to address this deficiency.
Upcoming Events
Timing could not be more perfect. While China's economy skyrockets, globally
recognized events scheduled to take place inside the country promise to add
more fuel to the flame. In 2008, Beijing will host the summer Olympics. Just two
years later, Shanghai hosts the World Fair.
This one-two punch promises to reel in billions of dollars while setting the stage
to showcase two of the most modernized cities in the world. State-of-the-art
infrastructure and transportation will already be in place to move both information
and tourists fast.
Discontinuity: Creating Gaps While Creating Opportunity
China's uniqueness compared to other countries currently in the same
developmental stage lies in its profound movement towards "discontinuities" or
gaps within already established regulation-based markets.
For example, a recent move to adhere to its own standard for 3G wireless access
called TD-SCDMA, rather than embracing the widely accepted GSM (Global
System for Mobile Communications) has sent several US-based chip makers
scrambling to be first to market and be premier supplier of these new chip sets.
In the consumer electronics arena, discontinuity has already had profound effects.
Currently, US$2.50 are spent per licence for each multimedia device (cellphone,
digital TV, DVD players) that garners the MPEG standard for compression. These
licences cost China billions of dollars in development.
The solution has been to create a proprietary standard for compression called
AVS (Audio Visual Coding) and charge domestic developers just 12 cents per
licence.
China is banking on the fact that having the largest growing middle class primed
to spend money, will give it an edge in persuading foreign developers to consider
alternative technologies that in the long run will aid both economies.
Investing In China: It's About Connections
Whether you plan on investing in a government-controlled area like
communications, or expanding your company's global footprint, political
connections are key. Politicians can make or break your entry into China.
If your plan is company expansion, it is imperative that you have the right people
on your side, even if it means hiring the sons and daughters of the politically
connected. Although this is not the only requirement, let's face it... if your product
performs in basically the same manner as five other competing vendors, who do
you think will be awarded the contract?
Same goes with money investments. It would be unwise to dish out millions of
dollars to a promising foreign market and take a "wait and pray" approach for
success. You must align yourself with partners that understand the playing field
who can not only open doors, but walk you through and then shut them behind
you.
Conclusion
Rapid expansion, massive consumer buying power and discontinuities have
simultaneously come together to create an environment previously unseen in the
investment community.
As China's market growth continues, inside pressure will force it to look beyond
its borders towards foreign solution providers and investors to help handle the
avalanche of demand--an opportunity that's not to be missed.
Monday, April 11, 2005
Silicon Valley North, Toronto
By Henry Wong
Conditions are ripe for a market explosion that stands to dwarf even the
inconceivable Internet boom of the 1990's. Boasting a GDP growth rate between
12-15 per cent in coastal cities in 2004--and a surging population of 1.3 billion
fresh consumers hungry for innovation and services--China is an investor's
paradise.
China's sheer size and market potential has already enabled the country to
position itself as a powerful mover and shaker, with ability to shape industries
and global economies. Recent entry into the World Trade Organization and overall
improvement of its economic system has further pushed its initiative towards
being a superpower.
Fuelling concern that spending on fixed asset investments (a key indicator of
growth) are spinning out of control, the Chinese government recently
implemented means to cool down the market--but with little success.
Fixed asset investments rose 24.5 per cent to a total of US$50.9 billion between
the Jan-Feb 2005 timeframe.
The Market
Communications
On par with the global economy, it's not surprising that main opportunities lie
within the technology and communication sectors. China's communication
infrastructure is rapidly being built out and/or refurbished to handle the myriad of
bandwidth-intensive next-generation multimedia applications.
Since much of this new infrastructure has been built from the ground up--allowing
for the integration of advanced technologies such as 3G wireless and
WiMAX--service rollouts to consumers have been drastically reduced by up to 75
per cent.
Faster time to market, coupled with revenue generating services/applications
stimulates a competitive environment that drives future innovation.
Imports
Rapid demand for consumer electronics and digital entertainment has left
China's semiconductor market in a quandary. Currently, less than 20 per cent of
integrated circuit (circuits needed to run devices) needs are being met, forcing
China to buy from Europe and North America. Several tier-1 semiconductor
companies have foreseen this development and have made necessary
preparation and resources available to address this deficiency.
Upcoming Events
Timing could not be more perfect. While China's economy skyrockets, globally
recognized events scheduled to take place inside the country promise to add
more fuel to the flame. In 2008, Beijing will host the summer Olympics. Just two
years later, Shanghai hosts the World Fair.
This one-two punch promises to reel in billions of dollars while setting the stage
to showcase two of the most modernized cities in the world. State-of-the-art
infrastructure and transportation will already be in place to move both information
and tourists fast.
Discontinuity: Creating Gaps While Creating Opportunity
China's uniqueness compared to other countries currently in the same
developmental stage lies in its profound movement towards "discontinuities" or
gaps within already established regulation-based markets.
For example, a recent move to adhere to its own standard for 3G wireless access
called TD-SCDMA, rather than embracing the widely accepted GSM (Global
System for Mobile Communications) has sent several US-based chip makers
scrambling to be first to market and be premier supplier of these new chip sets.
In the consumer electronics arena, discontinuity has already had profound effects.
Currently, US$2.50 are spent per licence for each multimedia device (cellphone,
digital TV, DVD players) that garners the MPEG standard for compression. These
licences cost China billions of dollars in development.
The solution has been to create a proprietary standard for compression called
AVS (Audio Visual Coding) and charge domestic developers just 12 cents per
licence.
China is banking on the fact that having the largest growing middle class primed
to spend money, will give it an edge in persuading foreign developers to consider
alternative technologies that in the long run will aid both economies.
Investing In China: It's About Connections
Whether you plan on investing in a government-controlled area like
communications, or expanding your company's global footprint, political
connections are key. Politicians can make or break your entry into China.
If your plan is company expansion, it is imperative that you have the right people
on your side, even if it means hiring the sons and daughters of the politically
connected. Although this is not the only requirement, let's face it... if your product
performs in basically the same manner as five other competing vendors, who do
you think will be awarded the contract?
Same goes with money investments. It would be unwise to dish out millions of
dollars to a promising foreign market and take a "wait and pray" approach for
success. You must align yourself with partners that understand the playing field
who can not only open doors, but walk you through and then shut them behind
you.
Conclusion
Rapid expansion, massive consumer buying power and discontinuities have
simultaneously come together to create an environment previously unseen in the
investment community.
As China's market growth continues, inside pressure will force it to look beyond
its borders towards foreign solution providers and investors to help handle the
avalanche of demand--an opportunity that's not to be missed.
Diamond TechVentures
(click here to see Henry's latest PRESS activities)
http://henry_wong_usa.tripod.com
http://henry_wong_usa.tripod.com
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Rice Alliance for Technology and Entepreneurship
December 10, 2009
http://alliance.rice.edu/alliance/Speakers7.asp
December 10, 2009
http://alliance.rice.edu/alliance/Speakers7.asp
Monte Jade November 2009 VC Forum
A closer look at Angel and Strategic Investors
November, 17 2009
http://www.eglobalcommunity.com/zh/view/52719/ and
http://www.montejade.org/blog/?p=217
A closer look at Angel and Strategic Investors
November, 17 2009
http://www.eglobalcommunity.com/zh/view/52719/ and
http://www.montejade.org/blog/?p=217