| Hong Kong Venture Capital Forum 2017 | |  |  |  |  | | The fourth annual Hong Kong Venture Capital Forum (HKVCF), organized by the Hong Kong Venture Capital and Private Equity Association (HKVCA), was held on Monday, July 10, 2017. Hosted at KPMG’s impressive conference rooms at Hysan Place, the Forum proved to be an overwhelming success with over 230 industry professionals in attendance.
Welcoming remarks were given by Darren Bowdern, Partner, Tax, KPMG Hong Kong, while a highly memorable keynote address was delivered by Matt Dill, Senior Vice President for Innovation and Strategic Partnerships at Visa.
The first panel of the day discussed India and featured Varun Bery, Senior Advisor at Latitude Capital; Annand Prasanna, Managing Partner at Iron Pillar; Amit Annand, Founding Partner at Jungle Ventures; and Ben Mathias, Managing Director and Head of India at Vertex Ventures.
The second panel discussed venture investment trends in ASEAN and featured KO Chia, Director at Grace Financial; Amit Anand, Founding Partner at Jungle Ventures; Kay-Mok Ku, Partner at Gobi Ventures; Peng Ong, Managing Director at Monk’s Hill Ventures; Markus Gnirck, Co-founder and Managing Director at tryb Capital; and Jeffrey Chi, Vice Chairman at Vickers Venture Partners.
The third panel of the afternoon focused on Japan and Korea and featured a lively discussion with Melissa Guzy, Co-founder and Managing Partner at Arbor Ventures; Han Kim, Managing Director at Altos Ventures; Emre Yuasa, Principal at Globis Capital Partners; Yo Nakagawa, Executive Director at Monex Group; and Ben Takeuchi, Vice President at Sumitomo Corporation Equity Asia.
The fourth panel focused on technical issues in Hong Kong and featured James Savage, Founding Partner at Demetr Ventures; Darren Bowdern, Partner, Tax at KPMG Hong Kong; Rocky Lee, International Partner and Head of the U.S. Corporate Practice at King & Wood Mallesons; and Stephen Tang, CFO at Lunar Capital.
The final panel examined LP sentiment and featured Eric Mason, Managing Director – Asia Investment at The Church Pension Fund; PV Wang, Co-CIO at Noah Holdings; Jie Gong, Partner at Pantheon Ventures; and Pokman Yiu, Executive Director at Royal Fund Management.
In addition to the panels, the Forum also featured a fireside chat with Annie Choi, Commissioner for Innovation and Technology of the HKSAR, and Denis Tse, Managing Partner at Asia-IO Advisors, discussing the latest on Hong Kong’s Innovation and Technology Venture Fund (see article on the following page). There was also a so-called “lightning round” featuring Hong Kong startup and venture capitalist Duncan Chiu, Managing Partner at Radiant Venture Capital, and Steven Lam, Co-founder and CEO at GoGoVan.
The Forum ended with a cocktail reception hosted by sponsor KPMG where the participants - investors, advisors and entrepreneurs – were able to enjoy a valuable networking opportunity.
We would like to sincerely thank our generous sponsors, specifically our Platinum Sponsor, KPMG, and our Venture Forum Sponsor, King & Wood Mallesons. Finally, we would like to thank the Association’s Venture Committee and all the participants for their continued support that helped make this special event possible.
Click here to visit photo album.
Video Highlights can be viewed here. | | HK$2 Billion ITVFC to Boost Local I&T Investment | | | | Annie Choi, Commissioner for Innovation and Technology for the HKSAR, provided the latest details on the Innovation and Technology Venture Fund (ITVFC) at the HKVCA’s Hong Kong Venture Capital Forum held on 10 July, 2017. The fund was announced by the Hong Kong government last year with the objectives of encouraging local startup investment, increasing deal flow and addressing the series A-funding gap.
The scheme encompasses a co-investment strategy with an overall matching ratio of 1:2 for eligible local I&T start-ups. The definition of local startups has been broadened to include those with headquarters in Hong Kong and/or R&D, production or significant business occurring in Hong Kong. The maximum contribution by the ITVFC is HK$30 million per deal and HK$50 million per company. While the amount of money may not be large compared to amounts traditionally seen in VC transactions, it may nevertheless be attractive to VCs involved in pitching with local startups.
The ITVFC is a passive investor and GPs have a leading role in the investment when it comes to identifying potential companies, conducting due diligence and negotiating transactions. As to exits, the fund will follow the GP partners’ liquidity strategy and the GP has an option to purchase shares at a pre-agreed price.
The ITVFC is open to all innovation and technology focused funds and they need not be onshore. However, as the objective is one of investing in local startups, the fund’s geographical preference must include Hong Kong with a minimum balance of HK$120 million in uncommitted capital.
For additional details about the ITVCF, please view the video of the fireside chat with Annie Choi by clicking here.
| | | | Limited seats available |  | HKVCA Luncheon Talk:
Belt and Road - From Rhetoric to Reality | | Sponsored by |  | | Speaker: | Andrew Weir, Senior Partner, Hong Kong | | Vice Chairman, KPMG China | | Global Chairman of Real Estate and Construction | | KPMG | | View Speaker's bio here. | | Date: | 24 August, 2017 (Thu) | | Time: | 12:30 - 14:00 | | Venue: | The China Club, 14/F The Old Bank of China Building | | 1 Bank Street, Central, Hong Kong | | Fee*: | Corporate Full Member | | One FREE pass per company
HK$450 per additional person
| | Corporate Associate/Overseas (Full/Assoc) Member | | HK$450 per person | | | | Non-Member | | HK$800 per person | | | | CPT: | 1 point | | | Priority is given to HKVCA members. |  
| | Full Members Only |  | HKVCA Brownbag Luncheon Talk:
Asia-Pac PE survey findings and related guidance | | Speaker: | Vinit Bhatia, Partner, Bain & Company | | View Speaker's bio here. | | Date: | 29 August, 2017 (Tue) | | Time: | 12:30 - 14:00 | | Venue: | Bain & Company Office, 30/F One IFC | | 1 Harbour View Street, Central, HK | | Fee*: | Corporate Full Members | | One FREE pass per company
*Fee inclusive of a light lunch | | CPT: | 1.5 points | | | |
| | HKVCA Brownbag Luncheon Talk:
China Outbound M&A – Buyer Consortium Considerations | | Sponsored by |  | | Speakers: | Lorna Chen, Partner, Asset Management,
Shearman & Sterling | | Stephanie Tang, Partner, M&A, Shearman & Sterling | | View Speakers' bio here. | | Date: | 31 August, 2017 (Thu) | | Time: | 12:30 - 14:00 | | Venue: | Shearman & Sterling Office, 12/F Gloucester Tower, | | The Landmark, 15 Queen's Road Central, Central, HK | | Fee*: | Corporate Full Member | | One FREE pass per company
HK$200 per additional person
| | Corporate Associate/Overseas (Full/Assoc) Member | | HK$200 per person | | | | Non-Member | | HK$400 per person | | | | *Fee inclusive of a light lunch | | | | CPT: | 1.5 points | | Priority is given to HKVCA members.
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|  | | Date | Time | Session | CPT | | 5 September | 09:30 – 13:00 | Module 1: PE Basics | 3 | | 5 September | 14:00 – 17:30 | Early Stage Investment | 3 | | 12 September | 10:00 – 12:30 | Module 2: The Investment Decision – Due Diligence Pricing and Structure | 2 | | 19 September | 14:00 – 17:20 | Module 3: Valuation Issues/ESG/
“High Level” Tax issues | 3 | | 21 September | 13:00 – 16:00 | Module 4:
Transaction Documentation | 2.5 | | 27 September | 14:00 – 17:15 | Module 5: Post Investment | 3 | | 11 October | 11:00 – 14:30 | Module 6: Tax/Fundraising | 3 | | 25 October | 14:00 – 17:15 | Case Studies: Pacific Coffee and
CVC/HKBN | 3 | | | View all speakers here. | | Register in a group of two (2) or more from the same company and enjoy a 10% discount. | | HKVCA Member | Non-Member | | Per Module | HK$1,300 | HK$2,600 | | Case Studies | HK$1,300 | HK$2,600 | | All 8 Sessions | HK$8,300 | HK$16,600 | |
|  | | The HKVCA Wine Tasting Event | | Sponsored by |  | | ~ California Dreamin' ~ | | Date: | 18 September, 2017 (Mon) | | Time: | 18:30 - 20:30 | | Venue: | Harcourt Suite, Hong Kong Club, 1 Jackson Road, Central, HK | | (Room reserved and hosted under the name Marcus Thompson) | | Fee: | HKVCA Member | | HK$580 HK$730 per person (payment by Aug 18)
| | Non-member
HK$1,200 per person | | | | Priority is given to HKVCA members. | | | | |
| | Member Only Event |  | | HKVCA 30th Anniversary Dinner | | Date: | 20 October, 2017 (Fri) | | Time: | Cocktail Reception: 18:15 - 19:00 | | Dinner: 19:00 - 21:30 | | Venue: | Aberdeen Marina Club, 8 Shum Wan Road, | | Aberdeen, Hong Kong | | | | | | Fee: | | Early-bird (Payment by Aug 31) | Standard | | Full Table (10 pax) | HK$18,800 | HK$21,000 | | Half Table (5 pax) | HK$9,600 | HK$10,800 | | Individuals | HK$1,980 | HK$2,200 | | | | | | Dress Code: Business Attire | | | | | Diamond Sponsors | | |
|  | | HKVCA Christmas Cocktail 2017 | | Sponsored by |  |  | | This event offers an excellent opportunity for networking with fellow professionals and for celebrating the holiday festivities with both colleagues and friends. We are also honored to have our Vice Chairman, Chin Chou, of Morgan Stanley, joining us for the evening. | | Date: | 7 December, 2017 (Thu) | | Time: | 18:00 - 20:00 | | Venue: | The China Club, 15/F, The Old Bank of China Building, | | Bank Street, Central, Hong Kong | | Fee: | HKVCA Member: HK350 per person | | Non-Member: HK$700 per person | | | | Priority is given to HKVCA members. | | Canapés and unlimited drinks including house wines, spirits, beer, fresh orange juice, soft drinks and water (mineral or sparkling) | | | | |
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| Co-organised Event:
Hong Kong’s Evolving Regime: New Board for New Economy Companies
11 August 2017
| | | | | New Members Welcome | | Corporate Full Members | | | | ACA Capital Group Limited | | | All-Stars Investment Limited
All-Stars was founded in 2014 by Morgan Stanley veterans who played active roles in many milestone internet and tech IPOs. The fund focuses on late-stage, high-growth internet, technology and consumer category leaders or “category killers” in Greater China. All-Stars currently manages US$1bn in assets and has invested in a series of category leaders, including Didi Chuxing, Tujia, Xiaomi, Meili Inc, Lianlian Pay and Truck Alliance. All-Stars positions itself as a value-added strategic investor by partnering with an extensive network of industry leaders that help the fund add value to its portfolio companies and access the most attractive private investment opportunities. | | | Allstate Investments
Allstate is one of the largest publicly listed personal line insurance companies in the US with over 86 years of history. Allstate Investments is the internal asset manager for Allstate with AUM over $85BN. Allstate Investments’ Hong Kong representative office coordinates Allstate investment activities in the Asia Pacific region. | | | | BVCF Management, Ltd. | | | | Goldman Sachs | | | responsAbility Hong Kong Ltd
responsAbility Investments AG is one of the world’s leading asset managers in the field of development investments and offers professionally managed investment solutions to private, institutional and public investors. The company’s investment solutions supply debt and equity financing predominantly to non-listed firms in emerging and developing economies. Through their inclusive business models, these firms help to meet the basic needs of broad sections of the population and drive economic development, leading to greater prosperity in the long term. responsAbility currently has USD 3.1 billion of assets under management, invested in over 540 companies across 97 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Geneva, and Hong Kong. | | | | Overseas Full Members | | | Skolkovo Ventures LLC
Skolkovo Ventures is a platform for public-private partnerships and investing in high-technology companies with international potential. Skolkovo Ventures manages three venture funds devoted to IT, industrial technology and biotech. | | | TMT Investments
TMT Investments PLC invests in high-growth, internet-based companies across a variety of sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has invested in over 40 companies to date. The company is traded on the AIM market of the London Stock Exchange. We look for innovators who can outgrow their competitors in the exciting world of leading-edge technologies and new media, and we invest in those who can create fast sustainable growth. In addition to financial resources, we offer portfolio companies our team’s combined decades of startup and investment experience; strategic outlook and global expertise; functional team support; and synergies with our other portfolio companies and partner distribution channels. | | | | Corporate Associate Member | | | Angela Ho & Associates
Founded in February 2007, Angela Ho & Associates is a Hong Kong law firm with experience in a wide variety of corporate finance, restructuring and commercial cases. Angela Ho & Associates prides itself on providing personal attention and dedication to its clients and is always ready to respond to their changing needs. Its multilingual lawyers and paralegals have advised many Hong Kong and PRC companies, both listed and non-listed, as they develop their businesses in the new economy. It continually adapts to new regulations, forms of business, and areas of interest. | | |
| | Recent Events Report | Members breakfast meeting
7 July, 2017 |  | | The HKVCA's monthly breakfast meeting was held at the Hong Kong Club on Friday, 7 July, 2017. The event attracted over 80 members taking full advantage of the opportunity to network and reconnect with their fellow industry practitioners. This month's breakfast would not have been possible without the sponsorship of Akin Gump Strauss Hauer & Feld to whom we would like to extend our sincere thanks for their sponsorship and help in making this terrific networking event possible. | | | | Brownbag luncheon talk
Going IPO? ESG practice matters in Hong Kong listing
27 June, 2017 |  | The HKVCA hosted its latest brownbag luncheon talk on 27 June, 2017 at HKEX’s Exchange Auditorium. Alvin Lam, Senior Managing Director of CVC; Brian Ho, China Sustainability Leader – Climate Change and Sustainability Services of EY; Hauman Yeung, Director of Ascent Partners Advisory Service; Jamie Allen, Secretary General of Asia Corporate Governance Association; Jeanne Ng, Director – Group Sustainability, CLP Power; and Katherine Ng, Head of Policy - Listing Department of HKEX, discussed the latest trends and challenges in the approach of Hong Kong listed companies to ESG. The speakers also discussed HKEX’s ESG reporting requirements, objectives and process. At the end of the panel discussion, Jeanne Ng shared CLP’s own ESG approach and integrated reporting with the audience.
TThe HKVCA and the ESG Committee were very pleased that as many as 80 members attended the luncheon talk and were able to take the opportunity to meet and network with their colleagues. We would like to thank all the participants, and especially our venue sponsor, HKEX, whose ongoing support has proved invaluable.
| HKVCA luncheon seminar
India regulatory update
21 June, 2017 |  | | The HKVCA hosted a luncheon seminar on 21 June, 2017 at the China Club. Kartick Maheshwari and Siddharth Shah, Partners at Khaitan & Co, provided attendees with an update on Indian regulatory and taxation issues, including those related to distress and special situation investments, downside protection and tax structuring for Indian investments. As part of their presentation, Kartick and Siddharth referred to a number of recent rulings of the Indian courts dealing with the recognition of assured return structures in India.
More than 60 HKVCA members attended the luncheon talk and we would like to thank all the participants, and especially our sponsor, Khaitan & Co, for their generous support of this popular event.
| HKVCA Masterclass: the use of segregated portfolio companies in the establishment of private equity funds
8 June, 2017 |  | | An HKVCA Masterclass, providing in-depth practical learning on the use of segregated portfolio companies (SPCs) in the establishment of private equity funds, was held on 8 June, 2017, at the office of international law firm Akin Gump Strauss Hauer & Feld in Central. The very technical discussion was led by two speakers from the firm: Anne-Marie Godfrey, Partner, and Chris Knight, Counsel. Among the topics examined was an overview of the structure of SPCs; the pros and cons of using SPCs for PE fund; the recommendations from ILPA; and how to deal with drawdown, distributing waterfalls, clawbacks, co-investments as well as other provisions. We would like to thank Akin Gump Strauss Hauer & Feld for their support of this event in our important Masterclass series. |
| | | Industry News | | CompareAsiaGroup scores $50M from investors including IFC, Alibaba and Goldman Sachs | | —11 July, 2017 | | (Tech in Asia by Catherine Shu) - CompareAsiaGroup, which runs online financial marketplaces in seven Asian countries, has closed a $50 million Series B. The round was led by the International Finance Corporation (IFC), a member of the World Bank Group, and includes capital from new investors Alibaba, SBI Group and H&Q Utrust. Returning investors like Goldman Sachs Investment Partners, which led CompareAsiaGroup’s $40 million Series A in 2015, Nova Founders Capital, ACE & Company and Route 66 Ventures, also participated. | | (link to the full article) |
| | Singapore's GIC buys 30% stake in Mergermarket | | —4 July, 2017 | | (AVCJ) - Singapore’s GIC Private has acquired an approximately 30% stake in Mergermarket Group – AVCJ’s parent company – from BC Partners. The size of the transaction was not disclosed. | | (link to the full article) |
| | Cassia Investments in partnership with Italian entrepreneur acquire Shanghai Tang | | —3 July, 2017 | | (Press Release) - Cassia Investments, the consumer focused private equity fund, in partnership with Italian fashion entrepreneur, Alessandro Bastagli, have acquired Shanghai Tang from Swiss luxury group Richemont (Compagnie Financiere Richemont). | | (link to the full article) |
| | Tencent leads $146M round in Chinese online brokerage firm Futu | | —13 June, 2017 | | (ChinaMoneyNetwork by Pan Yue) - Chinese Internet giant Tencent Holdings Ltd. has led a US$145.5 million C round financing in Futu Securities, an online brokerage platform serving Chinese investors trading U.S. and Hong Kong-listed stocks. | | (link to the full article) | | |
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