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While many VC firms
have been wary of engaging in new investment deals and funding
since the downturn in the US economy, Maxima has strong reasons
to move quickly with
investment in the Greater China region and the US. With confidence
in the booming
economy of Greater China, Maxima is ready to carry out investment
activity based on
constructive strategic planning, and will utilize the best business
players in the region.
Many VCs have not yet fully come to realize that a large number
of investee companies
can succeed only if they receive continuous resource support,
which is what VCs should
be providing in addition to capital. Maxima carefully monitor
the investees' development
process so that the investment risk can be minimized until the
time of exit. Maxima
believes that a proper balance between financial support and
resource assistance must
be determined for each investee company which underlines the
importance of choosing
the most capable management team in the right market. Maxima
will focus its portfolio
management efforts on both fund allocation and the management
process.
Maxima' investment strategies may be summarized as:
 Firsthand
and quality deal sourcing from our strategic partners
Diversified
investments across the Greater China and US markets
Close tracking
of Industry trends through our advisors and partners
Phased investment
approach
Professional
and responsive divestment
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Firsthand and quality deal sourcing from our
strategic partners
"Deal sourcing" goes beyond exploring promising prospects
amid intense VC competition.
A more powerful deal sourcing strategy is to quietly trace the
activities of entrepreneurs
who have shown great potential for success. In today's market,
it will take venture
capitalists much more time to find quality cases if they are
weak in industry networking.
Of course, a VC firm could screen whatever comes into its pipeline
and invest considerable
time in the due diligence process. But it makes little sense
for a VC firm to expend
excessive time on less qualified deals or to embrace more opportunities
than it can handle.
Maxima's "investor-centric" approach will help shorten
the time spent hunting for quality
deals and building connections with experienced entrepreneurs.
Maxima will engage in
actual seed investing only through its industry partners and
will help accelerate the growth
of the investee companies. In addition, by maintaining longstanding
and trust-based
relationships among the investees and industry partners, Maxima
will be able to deliver on
its promise to monitor the portfolio effectively and to augment
the value of the portfolio
companies.
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Diversified investments across the Greater
China and US markets
Maxima is a Greater China play based on strong industry networks.
Maxima perceives
some excellent opportunities among Taiwan, China and the US
at a time when
developments in global logistics are putting each country in
a pivotal position. Those
companies in China that are headed by Taiwan's industry leaders
will definitely play a
critical role in making regional collaboration possible. Maxima
will also seek to provide a
bridge between US and Asian companies, utilizing Maxima's expertise
in business
collaboration across the region. Most VC firms in Asia have
been watching China's
deregulation of its capital market and foreign investment controls,
but the investment risk
in China is still high compared with that in other markets.
Nevertheless, China is likely to
produce a significant number of attractive private equity opportunities
for investors. In this
regard, Maxima has identified country-specific focus areas for
implementing its
diversification strategy and has also examined exit options,
so that Maxima can participate
in China's great growth story with calculated risk.
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Close tracking of Industry trends through our advisors and partners
Maxima is privileged to have leading companies in the semiconductor
and electronics
industries as its anchor investors, and believes that the relationship
with these investors
should extend beyond fund raising. One such investor, for example,
a leading notebook
manufacturer, has devoted a great deal of effort to establishing
an international research
institute, enabling it to build up relationships with distinguished
US schools such as MIT.
With the goal of keeping an eye on advanced technologies, Maxima
can take advantage
of this research organization to identify and understand industry
trends. The goal of
Maxima's corporate partnership system is to have the key investors
serve as our virtual
team. Maxima will establish formal and informal communication
mechanisms to enable
our professionals to work closely with our anchor investors.
Maxima also assigns every
professional the responsibility to liaise with the senior executives,
R&D heads, and
investment directors of each of our key investors. Maxima's
key investors, as a result, will
play a pivotal role in the deal flows, networks, and technology
insight.
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Phased investment approach
Maxima's phased investment approach is to optimize the expected
financial returns while
minimizing investment risks at each development stage. To justify
the expected investment
return, our investment professionals will prepare a five-year
valuation tracking and financing
plan before making initial investments in each deal. The capital
injection decisions will
depend on the prospects of achieving the valuation milestones
that have been determined.
This phased investment approach also requires the investment
professionals to adopt
follow-on action plans in order to deliver the expected financial
returns.
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Professional and responsive divestment
Exits may be accomplished through an IPO, contractual redemption,
put options, or even
merger and acquisition. All such divestment processes require
not only professional
knowledge but also responsive exit actions. Since Maxima knows
its investee companies
inside out, having worked closely together with them through
the whole development stage,
Maxima can help make the most suitable exit decision to smooth
the divestment process
for investee companies, and most importantly, to generate maximized
returns for Maxima's
investors.
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