Transcript Global Venture Capital March 19, 2007 Michael Korver, Managing Partner Global Venture Capital • Tokyo-based independent venture capital firm since 1997 • Five partners • Invested.

Global Venture Capital
March 19, 2007
Michael Korver, Managing Partner
Global Venture Capital
• Tokyo-based independent venture capital
firm since 1997
• Five partners
• Invested in over 35 ventures
• Investment thesis: “Globally source, invest
locally”
• www.gvc.jp
“Globally Source, Invest Locally”
Investments in early-stage ventures located around the globe that have
“meaningful contacts” with Japan and/or other economies of Asia .
“Meaningful contacts” include one or more of the following attributes:
① A large potential market in Japan and/or other Asian countries and a
strong commitment on the part of management to consider these
markets to be of significant importance.
② A technology, product or service that is amenable to due diligence by
applying technology resources accessible internally or in Japanese
and/or other Asia-based corporations or academic/research institutions.
③ A strong potential interest by Japanese or other Asia-based
corporations in partnering with the venture.
④ The potential to undertake an IPO on the Japanese capital markets.
Why Our Investment Strategy
• “One size doesn’t fit all” – innovation not bounded by
geography; markets are global
• Silicon Valley doesn’t need more VC money or “bridging
organizations”
• U.S. not the appropriate first market for all innovations
– Too competitive
– Early adopters may be elsewhere
– Infrastructure to support growth of the market may not exist in
the US
– Larger potential markets may exist outside of the U.S.
• Powerful potential competitors or partners may lurk in
Asia
What we look for
• Market opportunity
– Large and fast-growing
– Compelling value proposition
– Effective “go-to-market” strategy
• Management team
– All bases covered
– Experienced
• Technology or other sustainable “barriers
to entry”
Case Studies
• Hoku Scientific (Nasdaq: HOKU)
– Alternative energy (Hawaii): achieved IPO on the strength of
commercial relationships with two large Japanese companies
• SpectraGenics
– Medical equipment (California): Launched product in Japan
pending FDA approval in the U.S.
• ReallyEnglish.com
– ITC (U.K.): English language online learning content developed
in U.K. but primary customers in Japan
• GeoVector
– ITC (California/New Zealand): Development team in NZ and first
market in Japan’s world leading mobile telephone sector