Monday, June 22, 2015

SME BANK TARGETS 90% ISLAMIC FINANCING PORTFOLIO BY YEAR-END


KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) is getting closer to reaching its target of turning into a full-fledged syariah development finance institution (DFI) with its Islamic financing portfolio now standing at 86.5% amounting to RM4.31bil.

The target is to achieve 90% Islamic financing portfolio by December 2015. When SME Bank was set up in October 2005, the Islamic financing portfolio was only 15%.
In a statement on Thursday, group managing director Datuk Mohd Radzif Mohd Yunus said the bank took a wholesome approach in planning and executing the transformation.

“The key focus areas include ensuring the staff are given sufficient exposure to gain the necessary skills and experience in managing the banks Islamic Finance portfolio,” he said.

Mohd Radzif said convincing customers to switch to Islamic financing was not a major challenge as Islamic finance provided the assurance of fairness for all and that transactions were based on genuine business activity or asset and it prohibited any speculative practices.

“Continuous engagement was done in addition to offering loyal customers no moving cost, unchanged monthly payments as well as unchanged terms. These efforts have translated into high percentage of conversion that the bank has recorded,” he said.

SME Bank, through its unit, Centre for Entrepreneur Research and Development Sdn Bhd, and Islamic Banking and Finance Institute of Malaysia, developed and conducted the Chartered Islamic Development Banker programme.

The programme, which is the first of its kind in the industry, is aimed at producing well-trained, highly competent personnel and executives with the required skills in shariah-based development banking.

A total of 487 SME Bank staff passed the Certified Islamic Development Banker Level 1 and 202 staff have passed the Professional Islamic Development Banker Level 2.

From this number, 296 staff have graduated and became the first batch to complete this programme. - Bernama

Citation from The Star Online – Business News: http://goo.gl/wzHxpS

STOCKS ON SME BOURSES TURN MULTIBAGGERS

In a high risk-high return market, companies listed on the small and medium enterprises (SME) platforms have turned out to be multibaggers, notching up returns ranging from 300 per cent to 2,500 per cent.

The BSE SME IPO index, a representative of all the SME stocks listed on BSE, has risen over nine times in just two years to 947 from a base of 100.

Out of the 101 companies listed on the BSE SME platform, 60 have given positive returns ranging from 200 per cent to 2,500 per cent, while 41 others are currently trading in the red.




“The BSE SME index presents a broader picture of the companies listed on the platform. Some of them have done very well while a few others have given average returns. Overall, this segment has put up a good show,” said Ajay Thakur, head of BSE SME Exchange.

Both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have SME platforms, where trading is restricted mainly to large investors as the lot size is of Rs 1,00,000. The NSE platform has seen just seven listings so far.

Out of the 94 companies listed on the BSE SME platform, seven have already moved to the main board. As on date, the BSE SME platform has a total market-capitalisation of Rs 8,202 crore.

Companies listed on the SME platform are allowed to migrate to the main board when they grow in size and are able to meet the criteria for listing on the main board.

Existing norms need firm to complete two years on SME platform and achieve post-issue paid-up capital of Rs 10 crore or above to qualify for listing on the main board.

Also, if the paid-up capital of a company exceeds Rs 25 crore, it would be compulsorily required to migrate to the main board. “SME stocks provide significant opportunity to investors. It is a high risk-high return instrument, which has yielded superb returns to long-term investors,” said Mahavir Lunawat, managing director of Pantomath Capital Advisors, a leading merchant banker in the SME market. The firm claims to have lead-managed most SME IPOs in terms of value during 2014-15. “It’s heartening to note that ultra-HNIs and institutional investors have also started looking at the SME market... ” Lunawat said. Pantomath SMEX-30, an index for SME scrips, saw over 188 per cent rise in last calendar alone. The SME platforms are for meant for small-sized companies, to facilitate raising of equity capital under relaxed regulatory and disclosure requirements compared with those for the main platform.

Many investors on the SME platforms are domestic high networth individuals (HNIs). Institutional players like banks and brokerages have also begun to take interest in this segment.

“Several investors have gained by investing in these companies. Many of them have huge potential for growth and investors gain by taking exposure to them at an early stage,” said Gaurav Jain, director of Hem Securities, a Mumbai brokerage.

More than 20 SMEs have filed draft red herring prospectus with the BSE SME platform this year, seeking permission to get listed. Seeing the success of companies listed on the SME platform, many small firms are showing interest in listing on the BSE SME platform, Thakur said.

“We are also creating awareness among SMEs about the benefits of listing on this platform, which can help them not only raise funds but also improve corporate governance practices apart from improving operational efficiencies,” he said.

“The SME exchange is a never-before opportunity for stakeholders. It enables emerging companies to unlock value, raise growth capital and reduce debt burden,” Lunawat said.


Citation from Deccan Chronicles : http://goo.gl/ggKjXN






ANA and United Airlines reward SME business travelers



All Nippon Airways (ANA) and United Airlines recently launched the Asia Joint Venture Simple program, a complimentary corporate travel program to support small- and medium-sized enterprises based in Indonesia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam with discounts when their employees travel on business to destinations in North, Central and South America.
SME businessmen and employees get discounts and other benefits when they fly on business via All Nippon Airways and United Airlines.

The program gives SMEs in the said countries access to a comprehensive trans-Pacific network through United and ANA that connects to over 227 destinations in the US as well as Central and South America – enabling SME employees to enjoy far more convenient travel. Unlike other corporate programs, Asia JV Simple places no limits on a company’s revenue to qualify for the scheme, enabling more SMEs to benefit. Among the additional benefits SME travelers will receive include premier status, lounge access and upgrades and, like other customers, they can earn award miles by joining United’s MileagePlus frequent flyer program.

“SMEs play a vital role in our local and regional economies, comprising 90 percent of businesses in the Asia-Pacific region and accounting for 60-80 percent of jobs and 30 percent of total exports.  We’re delighted to support SMEs with this new program,” said Alison Espley, United’s managing director of Japan and Pacific Sales.
Mitsuo Tomita, ANA’s vice president of Marketing and Sales Asia, believes that “this program will prove highly popular with our current and future SME customers, who represent an important section of the global business community. The Asia JV Simple program supports them by making the comprehensive networks of our two airlines easier than ever for them to access. This will make business travel a breeze for SMEs, and contribute to their growth potential.”
Launched in April 2011, the trans-Pacific joint venture between United and ANA involves both airlines working together to coordinate sales and marketing to improve customer experience with more choices, more convenience and unprecedented flexibility in trans-Pacific travel. The Asia JV Simple program is an extension of this joint venture tailored specifically to support SME business travelers as they grow their businesses.

Citation from : THE STANDARD- Defining the news : http://goo.gl/ZWHu2V

Saturday, June 20, 2015

At UNDP, Innovation for Development

On June 19, in a building of the US Senate, our UNDP Washington Representation Office participated in an Innovation Fair organized by the UN Foundation. The event was a timely success as development organizations must seek to innovate to meet stakeholders’ expectations in a fast-changing environment.
Among our partners, for example, USAID runs a Global Development Lab, UNICEF works with Silicon Valley’s technology start-ups and the US Global Development Council recently proposed new social impact funds and cash-on-delivery models.
UNDP has inherited a solid tradition of game-changing ideas such as the Human Development Index and continues to leverage technical, social and managerial innovation throughout its programs and operations.




In Sierra Leone, Yemen and the Democratic Republic of Congo, UNDP employs pioneering biometric voter registration techniques like fingerprint and eye scan, unique and unchangeable traits of a person, to prevent fraud and build trust in fair elections.
Using mobile phone messaging, Tanzanian voters check their electoral registration status and polling station location whilst in Papua New Guinea and the Philippines, text messages provide tsunami and earthquake warning.
On a global level, taking advantage of internet and mobile phone technologies, UNDP is polling people’s opinions (more than 2 million so far) to vote for the “World You Want” in addition to hundreds of community-based consultations. All results and data are shared publicly.
For many organizations, innovation also enables more direct communication and transparent management. Today UNDP leads the way on transparency by releasing all its project data on open.undp.org as well as its audit reports. By leveraging technology, UNDP can better monitor and evaluate its own programs and ensure greater citizen engagement through simpler reporting, mobile data collection or participatory statistics.
Social innovators such as A.H Khan (Khan Academy) or Mohamed Yunus (Grameen) work across sectors to propose new business models for a sustainable economy, such as distance learning and social entrepreneurship.  In 2014, UNDP launched the Social Innovation Initiative to combat corruption in Asia-Pacific, which funded theThai Youth Anti-Corruption Network’s "Refuse To Be Corrupt” cafés in universities, giving students a place to discuss and tackle corruption in their schools and communities.
Recently, our Innovation Board launched the UNDP Innovation Facility, with Denmark stepping forward as the founding donor.  This flexible mechanism will seek to offer technical and financial support, so that UNDP and its partners may propose new solutions to increasingly complex development challenges.
Innovation implies thinking outside of the box and taking risks, often a challenge for large organizations! Yet, UNDP is learning every day to harness innovation and stay a global leader.

Citation from UNDP : http://goo.gl/yEgY97

4 Keys To A Sustainable Content Marketing Strategy

READY FOR INNOVATION : START UP WITH VENTURE ART

Positioning an agency as a genuine thought leader in any competitive industry (and nowadays they are ALL competitive) carries the inherent challenge of building an enduring content strategy. The ability to remain in touch with the progression of marketing technology, and to capture it effectively through blogging initiatives, requires that agencies adapt their traditional content production methods to produce social engagement and social capital.

Automating social media and PR is one way of doing this. But it’s not the only way.

Here are some other keys to a sustainable content marketing strategy:

1. Data visualization
Writes Dorie Clark, a noted marketing strategy consultant, “Two recent factors have conspired to make this the moment for data visualization. First is the rise of Big Data and the growing public awareness of its power. Today more than ever, professionals are being asked to argue their cases and make their decisions based on data. But that push outside IT circles means that many non-technical professionals must now produce and comprehend insights from Big Data.
Visualization can help, and a raft of new tools makes that possible.” Nowadays, a business need not spend vast amounts of money to get right with data visualization (dataviz). These recent tools have become continuously more powerful and egalitarian. Far gone are those times when IT had to generate all reports for the non-technical employees. It’s easier than ever before for employees to speedily discover new things in increasingly abundant datasets. Examples include Visual.ly, Tableau, and R.
The more data marketers have on what their audience is doing, the better sustainable content marketing they can strategize.
2. Animation
You grab the attention of Facebook junkies with animation. E-cards are all animated. Reaching out to thank loyal customers is done through animated e-mails and other platforms. YouTube alone gets a billionunique visitors each month. If it moves, and it’s on the Internet, somebody is watching it.
The Internet is animated, and it’s only going to get more animated. Free animation software is readily available. You can only say the same thing about your brand in different ways so many times—but you can illustrate your brand in a never-ending variety of ways.
3. Engaging and interactive digital experiences
Yoav Vilner is a trending tech blogger and growth hacker. He’s all about the immediacy of SMS: “Right now, only 7 percent of consumers use SMS as a viable means to communicate with brands. But this is about to change. The same behavior that drives Self-Service is driving SMS customer service. Your customers don’t want to use call channels unless absolutely necessary. SMS is non-intrusive, low impact and an easily manageable solution.”
SMS is not a cure-all for content marketing strategy; when reaching customers via SMS just make sure to only send offers with real value.
4. Building communities
Michael Del Gigante, president and creative director ofMDG Advertising, says, “Everything we do as an agency is focused on building brand loyalty and advocacy for our clients. Customers are a community—one that changes and grows. We treat them as individuals, but we continually extend an invitation to each one of them through all touch points to join in a larger dialogue.”
Del Gigante continues, “Even though technology has enabled us to build and facilitate conversations with online communities, it still takes a skilled team that can speak on behalf of the brand and provide timely response to comments and questions. It’s important to remember that providing valuable information to a community that can share and comment on it is the goal. Consumers are savvy and will disengage if you use these communities as another platform to deliver marketing messages.”
Micah Solomon, a writer on corporate culture, says of customers, especially the large segment known as Millennials: “Millennials enjoy the possibility of collaborating with businesses and brands, as long as they believe their say matters to the company in question. They don’t necessarily see a clear boundary between the customer and the brand, the customer and marketer, and the customer and service provider.” 

A continuing dialogue with customers makes the marketer’s content marketing strategy that much more easy—and sustainable. 

CITATION  FROM  FORBES : http://goo.gl/LO3RCE


   

Wednesday, June 17, 2015

Startup Valuation - How to Value Startup

1.     Talabaat  - Kuwait’s Success Story with Tech Startup

Since Yahoo! acquired Maktoob in 2009 for $165 million the region has anticipated the next big exit. Today the German ecommerce group Rocket Internet is expanding its portfolio in the Middle East with its complete acquisition of Kuwait’s Talabat.com, a food takeaway platform, for the sum of 150 million Euros ($170 million USD).

Venture Art Value Proposition


“The Middle East is one of the most attractive markets with significant growth potential and highly attractive EBITDA [earnings before interest, tax, depreciation, and amortization] margins,” said Rocket Internet CEO Oliver Samwer in a statement. “The acquisition of Talabat.com is another important step in our long-term global Food & Groceries strategy.”
Rocket Internet acquires Kuwait’s Talabat for $170M, largest MENA tech acquisition since Maktoob
Founded in 2004, Talabat.com, which was sold once before by Abdulaziz Al Loughani in 2010 to Mohamed Jaafar, owner of the Kuwait London General Trading, has since become one of the largest online delivery services in the region, covering Oman, the UAE, Kuwait, KSA, Qatar, and Bahrain. The site operates with over 1,300 restaurants, including major brands like Burger King, KFC, Johnny Rocket’s, Hardees, TGI Fridays, and Subway.
Effect on Kuwait and the region
A Kuwait company by birth the acquisition of Talabat.com can only be seen as boon for the tech entrepreneur scene of the country. It is also an example of how big value cannot be created overnight; it took both Talabat.com and Maktoob 11 years to go from founding to exit.

1.1.         Souq.com Said Worth $1 Billion in Fundraising

 The Dubai-based online retailer Souq.com is seeking $300 million
Dubai-based online retailer Souq.com, backed by investors including Tiger Global Management, is seeking $300 million for expansion, according to three people with knowledge of the matter.
The fundraising would value the business at about $1 billion, the people said, asking not to be identified as the information is private. New York-based Tiger Global and South Africa’s Naspers, another existing investor in the company, are leading the fundraising, two of the people said.

Project Report - Feasibility Report - Venture Art


1.2.         The Daily Startup: Munchery is Valued at $300 Million in New Funding

Venture capitalists’ appetite for food-delivery and meal-kit services seems to be insatiable lately. The meal-delivery service Munchery the latest that is fundraising, and it is being valued at about $300 million in the new round, The Wall Street Journal’s Douglas MacMillan reports. The startup’s service delivers prepared meals that are then heated up at a person’s home.
 It was just a few weeks ago that the Journal also broke the news about meal-kit service Blue Apron out fundraising at a valuation of about $2 billion. Blue Apron’s service delivers boxes of ingredients that the user then prepares and cooks. Another venture-funding in the space was in late April when meal-delivery service Sprig raised $45 million. That service delivers meals, like Munchery, but that are already warmed. Other meal-kit services–including Plated, HelloFresh and Marley Spoon–also have sprouted in the last few years. Now many of them are looking to grow beyond San Francisco and New York–the tech hotbeds where they started–and other large cities.

2.     Silicon Valley Tech Investment and Exit Report

 Silicon Valley doubles funding and deal volume in the last five years. The internet and mobile sectors attract the lion’s share of funding in the region.
The internet sector has also consistently led deal share, which has remained very stable since 2009, only fluctuating by two percentage points. Computer hardware & services, electronics, and software have each decreased slightly, accounting for a combined 15% of deals in 2013. Mobile & telecom grew from 15% of deals in 2009 to 25% in 2013 as it takes share from sectors that are no longer en vogue.

2.1.         Startup Valuations Are A Combination Of Science, Smoke And Mirrors, And Hubris.

Seed round financings are also ballooning upwards –valuations for seed-stage companies have increased by 63% since 2008, averaging $5.3 million.
Series A round valuations are averaging $9.2 million, increasing at a modest rate of 23 percent.
Series B rounds, in contrast, are the one area of venture capital where the proportion of uprounds has contracted from 2012, although they still comprise 71% of Series B financings. The median B round valuation is $25.6 million.
Series C rounds rose by 93% in the first three quarters of 2013. The median Series C valuation is now $75 million.
The median valuation for Series D or later rounds is where numbers are really soaring — valuations spiked by 116% over the past five years and surpassed the $100 million threshold — it stands at $132 million.
The rise is even steeper in the software sector, which increased by 350%.
We have seen some incredible funding rounds and valuations in 2013 — Uber raised $285 million at a $3.5 million valuation, Snapchat is rumored to be raising $200 million at a $4 billion valuation, and Pinterest recently secured $225 million at a $3.8 billion valuation.

2.2.         The Age of Unicorns

 The billion-dollar tech startup was supposed to be the stuff of myth. Now they seem to be … everywhere.
Stewart Butterfield had one objective when he set out to raise money for his startup last fall: a billion dollars or nothing. If he couldn’t reach a $1 billion valuation for Slack, his San Francisco business software company, he wouldn’t bother. Slack was hardly starving for cash. It was a rocket ship, with thousands of people signing up for its workplace collaboration tools each week. What Slack needed, Butterfield believed, was the cachet of the billion-dollar mark.
It wasn’t long ago that the idea of a pre-IPO tech startup with a $1 billion market value was a fantasy. Google GOOG -0.43% was never worth $1 billion as a private company. Neither was Amazon AMZN -0.70% nor any other alumnus of the original dotcom class.
Today the technology industry is crowded with billion-dollar startups. When Cowboy Ventures founder Aileen Lee coined the term unicorn as a label for such corporate creatures in a November 2013 TechCrunch blog post, just 39 of the past decade’s VC-backed U.S. software startups had topped the $1 billion valuation mark. Now, casting a wider net, Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists (full list here). And given that these companies are privately held, a few are sure to have escaped our detection. The rise of the unicorn has occurred rapidly and without much warning, and it’s starting to freak some people out.
 Finally, there is the intangible element of perception. In the startup world, a valuation of $1 billion says that you’re no longer a fly-by-night startup with plans to quickly sell out to Google.
“It absolutely gives us credibility and the ability to hire some very important people,” says Apoorva Mehta, the 28-year-old CEO of on-demand grocery delivery service Instacart, which has been in business for only two years but reportedly is valued at $2 billion. “And it tells the world that we’re looking to build a long-lasting worldwide brand instead of looking to get acquired.”
 Facebook set tongues wagging when it paid $19 billion for instant-messaging startup WhatsApp. , then followed it up a month later by shelling out $2 billion for virtual reality headset maker Oculus VR. In 2014, Google paid $3.2 billion for smart thermostat maker Nest, Apple AAPL -1.08% acquired headphone maker Beats for $3 billion, and Microsoft spent $2.5 billion to own the Swedish gaming startup responsible for Minecraft. Even health care VCs cashed in, selling Seragon Pharmaceuticals to Genentech for upwards of $1.7 billion.
 That explains, in part, why a company like Instacart raised $120 million in new funding earlier this month at its reported $2 billion valuation just six months after raising $44 million at a $400 million valuation. Or why social media company Pinterest raised $625 million over three rounds of funding between February 2013 and May 2014, doubling its valuation from $2.5 billion to $5 billion.

3.     How to Calculate the Value of Your Early-Stage Startup

Valuing mature companies is a fairly straightforward — albeit somewhat subjective — process. Things like market capitalization and sales multiples give investors a solid foundation from which to work with when determining a company’s valuation. For early-stage startups, however, the process looks quite different.
Without years of financial data to rely on, startups and their investors (angels and venture capitalists) have had to rely on more creative ways to substitute for these inputs. In a nutshell, the process goes back to quantifying a bit of basic finance: ‘risk versus reward’. In startup terminology, it’s: ‘traction versus market size’.

3.1.         How does an early-stage investor value a startup?

The biggest determinant of your startup’s value are the market forces of the industry & sector in which it plays, which include the balance (or imbalance) between demand and supply of money, the regency and size of recent exits, the willingness for an investor to pay a premium to get into a deal, and the level of desperation of the entrepreneur looking for money.
Some of the valuation methods you may have have heard about include (links temporarily down due to Wikipedia’s position on SOPA and PIPA):
·         The DCF (Discounted Cash Flow)
·         The First Chicago method
·         Market & Transaction Comparables
·         Asset-Based Valuations such as the Book Value or the Liquidation value
An Investor Is Willing To Pay More For Your Company
·         It is in a hot sector: investors that come late into a sector may also be willing to pay more as one sees in public stock markets of later entrants into a hot stock.
·         If your management team is shit hot: serial entrepreneurs can command a better valuation (read my post of what an investor looks for in a management team). A good team gives investors faith that you can execute.
·         You have a functioning product (more for early stage companies)
·         You have traction: nothing shows value like customers telling the investor you have value.
  
3.2.         How Startup Valuation Works – Measuring a Company’s Potential

 Early-stage valuation is commonly described as “an art rather than a science,” which is not helpful. Let’s make it more like a science. Let’s see what factors influence valuation.
Traction. Out of all things that you could possibly show an investor, traction is the number one thing that will convince them. The point of a company’s existence is to get users, and if the investor sees users – the proof is in the pudding.
So, how many users?
If all other things are not going in your favor, but you have 100,000 users, you have a good shot at raising $1M (that is assuming you got them within about 6-8 months). The faster you get them, the more they are worth.
·         Reputation. There is the kind of reputation that someone like Jeff Bezos has that would warrant a high valuation no matter what his next idea is. Kevin worked at Google for two years, but other than that he had no major entrepreneurial success. Same story with Pinterest founder Ben Silbermann. In their cases, their respective VCs said they followed their intuition.
·         Revenues. Revenues are more important for the B-to-B startups than consumer startups. Revenues make the company easier to value.
·         Distribution Channel: Even though your product might be in very early stages, you might already have a distribution channel for it.
·         Hotness of industry. Investors travel in packs. If something is hot, they may pay a premium.

20 biggest reasons why startup companies fail

Startup companies seem to have all the fun. They create new markets, disrupt old ones, get ridiculous amounts of money from venture capital firms, throw wild launch parties, have the best-looking offices — the list goes on. But is it really that easy to reach startup stardom, or do these idyllic stereotypes hide a harsher truth?
As it appears, the reality is harsh indeed, because 90% of all startups fail. That sounds horrible, doesn’t it? Well, let that sink in. Oh, and the VC money I mentioned earlier? It counts for just 1% of total startup funding, as 82% of startups are self-funded and 24% of entrepreneurs rely on friends and family to keep their business dreams afloat. As for wild parties and lavish offices, the more extravagant they are, the more money is being thrown away, reducing the chance of success and abusing the trust of investors.
Another common reason for failure, Furr argues, is that startups “are doing good things but doing them out of order. In other words, they are doing things that seem to make sense, like investing to build the product, hiring good people to help them sell it, developing marketing materials, and essentially doing all the kinds of things that big companies with lots of resources do when they are executing on a known opportunity.”
The issue here, however, is that these investments make sense only when there is extensive pre-existing market research supporting them, or years of sales data that justify the risk. In the majority of documented cases, instead of assessing the risks and opportunities objectively and scaling those investments accordingly, startups rely on guesswork, giving more credit to their vision of what the future may hold, rather than examining real facts. This is understandable, as many startups bring new and never-before-seen products to the market, but this is also why they need to manage the process of coming to the market differently.
Here’s the list of top 20 most common reasons by CB Insights:

The reasons for failure are varied indeed. Reading charts and books is all well and good, but sometimes you want to go granular and really dig into why some startups crashed and burned. Wouldn’t it be great if there were a website sharing failure stories of various startups, so you could learn from their mistakes, and hopefully avoid them? 
It’s obvious that the data support the aforementioned statistics — no market, running out of cash, lack of focus and many more reasons are given, creating short and intimate stories that are a part of this depressing, but educational, database of broken dreams and business ideas.
Citation from Market Watch : http://goo.gl/5Fz2SU