AskVenture.com - Venture Capital Funding Startup Company IPO Guide Blog

Download AskVenture.com Professional Excel Cap Table Template (.xls)

AskVenture.com — Fri, 27 Apr 2012 08:18:24 +0000

AskVenture.com professional excel cap table is available for US$9.99 only. It’s an excel template that you can plug in your own variables and it will automatically calculate all the figures and information, and the template will generate a complete cap table for a company. It shows the capitalization of a company before and after 3 [...] Related posts:

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is exactly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A [...]...
Download pre post ipo global offering stats shareholding cap table spreadsheet template sample xls This is a spreadsheet used by a major investment bank and law firms showing the IPO offering stats of a company contemplating IPO in a real-live IPO deal (with sensitive and confidential information removed). It is divided into three parts: 1. Offering stats at IPO (market cap, forecast earning, pe ratio, offer price, IPO proceeds, [...]...
Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of [...]...
What is pre-emptive right in a venture capital / private equity (vc/pe) investment? You’ll almost always see a pre-emptive right clause in a venture capital / private equity (vc/pe) term sheet or share subscription agreement. Sometimes, pre-emptive right is also called pre-emption right or subscription right. This is a right typically demanded by vc/pe investor. What is pre-emptive right? Pre-emptive right is the right of existing shareholders to [...]...
Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with [...]...

Benefits of Investing in a Startup

AskVenture.com — Tue, 17 Apr 2012 09:41:17 +0000

Benefits of Investing in a Startup When looking at where to invest, it can be difficult to decide whether or not it is worth putting your money into a startup company. The risk is often much larger with startups, but then again, so is the return which you are likely to see should the business [...] Related posts:

From Seed Capital to Angel Investors to Venture Capital Funding – Startup Company Financing Model This article gives an overview of how a startup company goes from seed capital to angel investors to venture capital funding (Series A round) – the classic startup company financing model. Seed capital / Seed round / Seed funding Say, 3 people decide to start a business in biotechnology. They do so by incorporating a [...]...
Calculate pre-money valuation of startup company seeking venture capital funding Pre-money valuation – the basic concept The calculation of the pre-money valuation of a startup company seeking venture capital financing is as much a science as an art. It is a science because a lot of the calculations are based on scientific methods – the use of equations, formulas, comparators, etc. It is an art [...]...
Venture capital exits – trade sale vs IPO – compared and analyzed Way before a venture capitalist invests in a company, he is already thinking how and when to exit from the investment. This article tells you why and compares between the two venture capital exits – trade sale and IPO. Illiquid nature and limited life-span of a VC fund A well-planned exit is particularly important in a [...]...
Risky but High Potential Return Nature of Venture Capital Investments Risky nature of venture capital investments A crucial aspect of venture capital investment is the ability to identify novel technologies at a very early stage that have a potential of generating huge return within just a number of years’ time. This is because when a venture capitalist invests in a startup company, the company is [...]...
What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital [...]...

What is a variable interest entity (VIE) structure for foreign investment in China (PRC)?

AskVenture.com — Tue, 20 Mar 2012 08:11:45 +0000

What is a variable interest entity (VIE) structure for foreign investment in China (PRC)? A variable interest entity (VIE) refers to a structure in which an entity established in China which is fully or partially owned by a non-Chinese company, through certain contractual or services arrangements, has control over a Chinese operating company holding the necessary licenses [...] Related posts:

What is round trip investment? A review of China’s round trip regulations – Circular 75, M&A Rules, Circular 106 What is round trip investment? A round trip investment （返程投资）refers to an investment made by a Chinese resident in a Chinese domestic company through an offshore special purpose vehicle (SPV). For example, where a Chinese resident sets up an offshore holding company (e.g., a Hong Kong SPV or a Cayman Islands SPV) and invests into [...]...
What is split share structure and split share reform? What is the split share structure(股权分置改革）? Not all the shares in a company incorporated in China that are listed on a stock exchange are freely tradable. The split share structure of the Chinese public securities market refers to the existence of a large amount of non-tradable shares, including state-owned shares and legal person shares of [...]...
A, B, H Shares of the Chinese public securities capital markets Freely tradable shares in a listed Chinese company fall into 3 categories: A-shares A-shares are shares in companies incorporated in China that are listed on the Chinese A-shares market for trading among Chinese citizens and Qualified Foreign Institutional Investors (QFII) (合格境外机构投资者). A-shares are quoted in RMB. Examples of QFII as approved by the State Administration [...]...
Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of [...]...
Hong Kong IPO main board listing requirements – profit / market / capitalisation / revenue / cash flow test I have represented underwriters and issuers in initial public offerings (IPO) in Hong Kong on many occasions. In this article, I give an overview of the key financial listing requirements in relation to listing on the main board of the Hong Kong Stock Exchange. A new listing applicant must satisfy either the profit test or [...]...

What is a statutory declaration under Hong Kong law and how to make one?

AskVenture.com — Mon, 19 Mar 2012 05:27:05 +0000

This article discusses statutory declarations under Hong Kong law. What is a statutory declaration? A statutory declaration is a declaration made in the manner provided by the Oaths and Declaration Ordinance (Chapter 11 of the Laws of Hong Kong). The Oaths and Declaration Ordinance specifies the forms that a statutory declaration should be made. According [...] Related posts:

Hong Kong Companies Annual General Meeting (AGM) Requirements under the Companies Ordinance This article summarizes the requirement of Hong Kong companies to hold annual general meeting (or AGM) under Hong Kong law – more specifically, section 111 of the Companies Ordinance (Chapter 32, Laws of Hong Kong). This requirement applies to companies that are incorporated in Hong Kong (whether listed companies or private companies) or companies that [...]...
Incorporation of a Hong Kong company limited by shares as a special purpose vehicle (spv) or holding company Some clients I work with require the incorporation of a Hong Kong limited company in the process of their private equity, M&A or capital markets investments. I have helped a lot of clients incorporate such company which is mainly used as a special purpose vehicle (SPV) or a holding company. In this article, I discuss [...]...

Where can I look up Hong Kong (HKEx) listed companies information, announcements, circulars, financial results, annual reports, prospectuses?

AskVenture.com — Thu, 15 Mar 2012 09:34:51 +0000

Where can I look up Hong Kong (HKEx) listed companies information, announcements, circulars, financial results, annual reports, prospectuses? http://www.hkexnews.hk Just enter the stock code, period to be covered, information category and search. The website is solely for the dissemination of information of companies listed on the GEM or Main Board of the Hong Kong Stock [...] Related posts:

Financial Reporting (Half and Full Year) Disclosure and Reporting Compliance Requirements of Listed Companies on the Hong Kong Stock Exchange (HKEx) Listed companies on the Hong Kong Stock Exchange (HKEx) are subject to certain financial reporting and disclosure compliance requirements under the Hong Kong Listing Rules. This article sets out briefly what these requirements are. Distribution of annual report and accounts Preliminary Announcements of Results – Full Financial Year LR13.49(1): For annual accounting periods ending on [...]...
Number of listed companies on the Hong Kong Stock Exchange (HKEx) This is a short post. Here’re some statistics in case you’re interested. As at February 29, 2012, Number of listed companies on the Hong Kong Stock Exchange (HKEx):- Main Board: 1,334 GEM: 173 Total: 1,507 If you’re thinking of listing your company on the HKEx, here’re the HKEx Main Board listing requirements....
Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...]...
How soon can a Hong Kong listed company raise fund after its IPO on the HKEx? How soon can a Hong Kong listed company raise fund after its IPO on the Hong Kong Stock Exchange (HKEx)? The answer is 6 months after its IPO. Under the Hong Kong Main Board Listing Rules, a HKEx listed company cannot issue shares or securities convertible into equity securities or agree to such an issue [...]...
Hong Kong Companies Annual General Meeting (AGM) Requirements under the Companies Ordinance This article summarizes the requirement of Hong Kong companies to hold annual general meeting (or AGM) under Hong Kong law – more specifically, section 111 of the Companies Ordinance (Chapter 32, Laws of Hong Kong). This requirement applies to companies that are incorporated in Hong Kong (whether listed companies or private companies) or companies that [...]...

How soon can a Hong Kong listed company raise fund after its IPO on the HKEx?

AskVenture.com — Tue, 13 Mar 2012 09:08:45 +0000

How soon can a Hong Kong listed company raise fund after its IPO on the Hong Kong Stock Exchange (HKEx)? The answer is 6 months after its IPO. Under the Hong Kong Main Board Listing Rules, a HKEx listed company cannot issue shares or securities convertible into equity securities or agree to such an issue [...] Related posts:

Lock-up restrictions on controlling shareholders following a Hong Kong Stock Exchange (HKEx) IPO Controlling shareholders of a Hong Kong listed company are subject to certain lock-up restrictions regarding disposal of their shares following the company’s initial public offering (IPO) on the HKEx. The restrictions come in two phases (6+6). First 6 months’ lock up From the date of IPO prospectus to 6 months after the initial listing of [...]...
Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...]...
Hong Kong Stock Exchange (HKEx) IPO initial listing fees and annual listing fees Of course it’s good to raise over US$200 million from an IPO on the Hong Kong Stock Exchange (HKEx). But have you ever wondered how much it costs to list on the HKEx? In this article, I’m going to tell you the listing fees that HKEx charges your company. The initial listing fee and annual [...]...
Exercise price of share option under a share option scheme of a Hong Kong listed company This article sets out the basis of determination of the exercise price of share options to be granted under a share option scheme of a company listed on The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange). Hong Kong Listing Rules If the shares of a company is listed on the Hong Kong [...]...
Financial Reporting (Half and Full Year) Disclosure and Reporting Compliance Requirements of Listed Companies on the Hong Kong Stock Exchange (HKEx) Listed companies on the Hong Kong Stock Exchange (HKEx) are subject to certain financial reporting and disclosure compliance requirements under the Hong Kong Listing Rules. This article sets out briefly what these requirements are. Distribution of annual report and accounts Preliminary Announcements of Results – Full Financial Year LR13.49(1): For annual accounting periods ending on [...]...

Lock-up restrictions on controlling shareholders following a Hong Kong Stock Exchange (HKEx) IPO

AskVenture.com — Mon, 12 Mar 2012 08:49:25 +0000

Controlling shareholders of a Hong Kong listed company are subject to certain lock-up restrictions regarding disposal of their shares following the company’s initial public offering (IPO) on the HKEx. The restrictions come in two phases (6+6). First 6 months’ lock up From the date of IPO prospectus to 6 months after the initial listing of [...] Related posts:

How soon can a Hong Kong listed company raise fund after its IPO on the HKEx? How soon can a Hong Kong listed company raise fund after its IPO on the Hong Kong Stock Exchange (HKEx)? The answer is 6 months after its IPO. Under the Hong Kong Main Board Listing Rules, a HKEx listed company cannot issue shares or securities convertible into equity securities or agree to such an issue [...]...
Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...]...
Hong Kong Stock Exchange (HKEx) IPO initial listing fees and annual listing fees Of course it’s good to raise over US$200 million from an IPO on the Hong Kong Stock Exchange (HKEx). But have you ever wondered how much it costs to list on the HKEx? In this article, I’m going to tell you the listing fees that HKEx charges your company. The initial listing fee and annual [...]...
Listing Requirements of the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange (HKEx) As you probably know, the Hong Kong Stock Exchange (HKEx or HKSE) has two trading boards on which shares of a company can be listed. The first trading board is the Main Board and the second trading board is the Growth Enterprise Market (GEM). Last time, I wrote about the listing requirements of the Main [...]...
Number of listed companies on the Hong Kong Stock Exchange (HKEx) This is a short post. Here’re some statistics in case you’re interested. As at February 29, 2012, Number of listed companies on the Hong Kong Stock Exchange (HKEx):- Main Board: 1,334 GEM: 173 Total: 1,507 If you’re thinking of listing your company on the HKEx, here’re the HKEx Main Board listing requirements....

Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules

AskVenture.com — Fri, 09 Mar 2012 08:24:59 +0000

The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...] Related posts:

Listing Requirements of the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange (HKEx) As you probably know, the Hong Kong Stock Exchange (HKEx or HKSE) has two trading boards on which shares of a company can be listed. The first trading board is the Main Board and the second trading board is the Growth Enterprise Market (GEM). Last time, I wrote about the listing requirements of the Main [...]...
Number of listed companies on the Hong Kong Stock Exchange (HKEx) This is a short post. Here’re some statistics in case you’re interested. As at February 29, 2012, Number of listed companies on the Hong Kong Stock Exchange (HKEx):- Main Board: 1,334 GEM: 173 Total: 1,507 If you’re thinking of listing your company on the HKEx, here’re the HKEx Main Board listing requirements....
Hong Kong Stock Exchange (HKEx) IPO initial listing fees and annual listing fees Of course it’s good to raise over US$200 million from an IPO on the Hong Kong Stock Exchange (HKEx). But have you ever wondered how much it costs to list on the HKEx? In this article, I’m going to tell you the listing fees that HKEx charges your company. The initial listing fee and annual [...]...
Hong Kong IPO main board listing requirements – profit / market / capitalisation / revenue / cash flow test I have represented underwriters and issuers in initial public offerings (IPO) in Hong Kong on many occasions. In this article, I give an overview of the key financial listing requirements in relation to listing on the main board of the Hong Kong Stock Exchange. A new listing applicant must satisfy either the profit test or [...]...
How soon can a Hong Kong listed company raise fund after its IPO on the HKEx? How soon can a Hong Kong listed company raise fund after its IPO on the Hong Kong Stock Exchange (HKEx)? The answer is 6 months after its IPO. Under the Hong Kong Main Board Listing Rules, a HKEx listed company cannot issue shares or securities convertible into equity securities or agree to such an issue [...]...

New trading hours for Hong Kong Stock Exchange (HKEx) starting March 5, 2012

AskVenture.com — Wed, 07 Mar 2012 07:30:23 +0000

Here’re the trading hours of the Hong Kong Stock Exchange (HKEx) effective March 5, 2012 (for Securities Market & Stock Futures/Options Markets). Pre-opening session: 0900 – 0930 (no change pre and post March 5, 2012) Morning continuous trading session: 0930 – 1200 (no change pre and post March 5, 2012) Afternoon continuous trading session: 1300 [...] Related posts:

Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...]...
Number of listed companies on the Hong Kong Stock Exchange (HKEx) This is a short post. Here’re some statistics in case you’re interested. As at February 29, 2012, Number of listed companies on the Hong Kong Stock Exchange (HKEx):- Main Board: 1,334 GEM: 173 Total: 1,507 If you’re thinking of listing your company on the HKEx, here’re the HKEx Main Board listing requirements....
Listing Requirements of the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange (HKEx) As you probably know, the Hong Kong Stock Exchange (HKEx or HKSE) has two trading boards on which shares of a company can be listed. The first trading board is the Main Board and the second trading board is the Growth Enterprise Market (GEM). Last time, I wrote about the listing requirements of the Main [...]...
Financial Reporting (Half and Full Year) Disclosure and Reporting Compliance Requirements of Listed Companies on the Hong Kong Stock Exchange (HKEx) Listed companies on the Hong Kong Stock Exchange (HKEx) are subject to certain financial reporting and disclosure compliance requirements under the Hong Kong Listing Rules. This article sets out briefly what these requirements are. Distribution of annual report and accounts Preliminary Announcements of Results – Full Financial Year LR13.49(1): For annual accounting periods ending on [...]...
Hong Kong Stock Exchange (HKEx) IPO initial listing fees and annual listing fees Of course it’s good to raise over US$200 million from an IPO on the Hong Kong Stock Exchange (HKEx). But have you ever wondered how much it costs to list on the HKEx? In this article, I’m going to tell you the listing fees that HKEx charges your company. The initial listing fee and annual [...]...

What is right of first refusal (ROFR) in a venture capital (vc) financing?

AskVenture.com — Tue, 06 Mar 2012 15:33:58 +0000

In a venture capital term sheet, you’ll find a right of first refusal (ROFR) clause. This right is often given to preferred shareholders. What is right of first refusal (ROFR)? The right of first refusal is the right to acquire shares before shares are transferred to a third party. For example, if A (company founder) [...] Related posts:

What is pre-emptive right in a venture capital / private equity (vc/pe) investment? You’ll almost always see a pre-emptive right clause in a venture capital / private equity (vc/pe) term sheet or share subscription agreement. Sometimes, pre-emptive right is also called pre-emption right or subscription right. This is a right typically demanded by vc/pe investor. What is pre-emptive right? Pre-emptive right is the right of existing shareholders to [...]...
Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with [...]...
What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital [...]...
How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may [...]...
What is a venture capital term sheet? Is a Series A term sheet binding? A term sheet is a document that summarizes the key terms of a proposed investment. It is sometimes called a letter of intent. Typically, a term sheet is not binding, except for confidentiality, exclusivity and expenses (or transaction fees). Exclusivity is sometimes called no-shop no-solicitation clause. Click here to download your free sample term sheet [...]...