15 July 2015, Bangkok, Thailand

Raising External Funding

Aung Kyaw Moe

1

• Grow up in Myanmar, live in Bangkok, travel across SEA

• Left Myanmar in 1998, arrived Thailand in 1999 for new opportunities

• Involved in FinTech Industry for over 15 years

• Founded several FinTech companies

• EMBA (06’) — Sasin, Thailand

• ACE — Massachusetts Institute of Technology, USA

Agenda

2

1. Brief Profile & Motivation

2. Early Years (3Fs)

3. Working with Angels

4. Understanding VC (Incubation & pitches)

5. Swimming with the sharks (Strategic Investors)

6. Recommendations

Brief Profile & Motivation

3

Company Background — At a Glance

4

+2.2b

USD 85%

2014 THAILAND Acceptance

ALL

Locations

5

10 Countries

Company Background —

Investors

6

• Grants Received

• Investments Received

+10m USD

Trusted Regional Partner — Banks

7

+20 Banks

Trusted Regional Partner — Major Clients

8

+15 Airlines

Team — 2014

9

Motivation

10

My Only Motivation

11

Born: 18 April 2003

First Company: 23 April 2003

Early Years (3Fs)

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Early Years (3Fs)

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Friends, Family, Fools

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Year 2003/2546

Early Years (3Fs) — Family

15

Early Years (3Fs) — Family

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Early Years (3Fs) — Family

Early Years (3Fs) — Family

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1. Describe and Communicate Your Passion

2. Communicate the Plan and Risk up front

Advantages • They have no choice • They will always support your idea Disadvantages • Your idea may not be good • You are risking everything

18

Early Years (3Fs) — Family

19

Team — 2009

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Early Years (3Fs) — Friends &

Fools 1. Offer official agreement together with handshake

2. Focus on well-connected friends with relevant business experience

3. Don’t ask for more than they can afford

Advantages • Fast Funding Process • They will support your idea if things are good Disadvantages • They may walk away and ask their money back when things are not great • Friendship is at risk

21

Doing Well = Equity/Shares Not Doing Well = Loan

Special Supervisor

Early Years (3Fs) — Friends & Fools

Working with Angels

22

Working with Angels

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1. Business knowledge, business connections and entrepreneur

2. Specialized in specific industry

Advantages • Knows the process • Relatively fast funding Disadvantages • Wants too much equity • Control

24

Working with Angels

2004-2008 2008-Today

1. Help with BOT eMoney License process

2. Recruiting

3. Mentorship and other supports

4. Acquisition

Understanding VC (Incubation and Pitches)

25

Understanding VC — Incubation

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1. Understand financial models and projection

2. Presentation skills (Pitching skills)

3. Familiarize with VC acronyms

4. Opportunities to practice investor pitches

5. Positive criticism and continuous improvements

6. Understanding of term sheets

27

Understanding VC — Pitches

1. Practice makes perfect

2. Repetition, Repetition, Repetition, Repetition, Repetition

3. Good pitch may not receive investment — but, it usually gets second meeting

4. Pitching different type of investors makes you sharp and allows you to identify your weaknesses

28

Understanding VC — Pitches

29

Understanding VC — Type of VC

1. Seed Capital — idea

2. Startup Capital — prototype or product; no customer;

3. Early Stage Capital — team; few customers; try to break even;

4. Expansion Capital — well established; expand new product, market;

5. Late Stage Capital — depends; IPOs; Acquisition; etc.

30

Never worked at a startup before

31

My way or no $$$

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NATO = No Action, Talk Only

33

Everything is great; Money is coming;

Swimming with the sharks

Strategic Investors

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35

Merger and Acquisitions

1. Eat or be eaten;

2. Strategic investors may become potential acquirer;

3. Management buyout options;

4. Information rights;

5. Additional investment obligations;

6. Commercial obligations;

Recommendations

36

37

Understanding VC — Time/Complexity/Amount

38

Understanding VC — Norms

Top 20 Reasons

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Startup CEO???

40

Failure (85%)

Nobody

likes you Always

worried Constant

betrayal

Always

behind Sell, Sell, Sell

Q&A