We are looking for VCs that will just give us the money and leave us alone' I think none of the loca

1
Management Control and Flexibility
Hanson Cheah November 1, 2001 HKVCA Conference
2
We are looking for VCs that will just give us
the money and leave us alone. I think none of
the local VCs will do that so we are looking for
foreign ones.
- A prominent Singaporean IT entrepreneur on CNBC
3
Control, Control

• Super-majority Clauses
• Controls on
• Spending
• Hiring
• Borrowing
• New Products

4
The Result

• Delays in Execution
• Frustration and Ill Will
• Wrong Strategy
• Going Down the Wrong Path
• Who Knows Company Better?
• Better to Focus on the Important Things

5
Startups are like babies

• Not just provide food
• Need to feed and burp
• Not just provide shelter
• Need to show the bed and sing lullabies

6
Systems and Control

• Spending and Capital Flow
• Budgets and Forecast
• Major Decisions
• Make or Buy
• Contracts

7
Management Issues

• Founder vs. CEO or Founder/CEO
• Replace now or later
• Democracy / Autocracy
• Team Dynamics

8
Managing Competitive Edges

• Recognizing and Defining the Edge
• Designing for the Market
• Toyota vs. Roll Royce
• Focus

9
Managing Decisions

• Financing
• Listing
• Alliances
• Contracts

10
Management Control and Flexibility
Hanson Cheah November 1, 2001 HKVCA Conference