Ataplus Deals: Starting Round 1

Months ago where I went to Publika, I stumbled upon an event where entrepreneurs pitch their companies like they are in  Shark Tank, the entrepreneur talks about their company, the investors ask questions, the entrepreneur answers, ask more  questions, answer more answer, in the side lines I ask about how healthy the really Big Crzypuff will be, he answer my questions.

Everybody (the audience including me, the entrepreneurs and the investors) take a picture, I hang around with  the investors who gives out some business advice, got a chocolate drink pack from an Enterprise that is the same age as I am (which I have to say, kinda okay) and best of all, free goodies to take and free food to eat.

http://www.ata-plus.com/

I am definitely impressed, and later I went home and immediately sign up for an ataplus account as a potential Level 1 investor…and 6 months later, the deals finally come, and here’s my thought to the three of them.

Given that Ataplus works in the same vein as Kickstarter, I should have offer a link about how to gain revenue so that we can see how the company would be managed day by day.

http://vator.tv/news/2014-02-01-how-does-kickstarter-make-money

Update and Pay Attention: Q & A Sessions are now here, so rich people, if you wanna help to contribute the economical entrepreneurship of Malaysian Talent and see recognize the opportunity to refine the metals, read this and invest now, especially when I have already invested my part.

Pasartap- Market by Your Smartphone

By default, this is probably the one that I have realistically use in the next 10 years. I could think of myself as a white collar worker who in 1 hour before he finishes work, he can use their services to buy groceries from them so that he can simply drive home, get his groceries and cook up a healthy meal for dinner (that is, if his working hours are till at least 4:30 p.m.).

Plus, from the ataplus deal page they are the only 1 of the 3 that actually talks about how their crowd funded money would be used in the next 3 years. The price per share is insanely expensive though (60:1), which make it seems like the growth of the company is limited.

From their website, I’m surprised that their main page and the categories is written in English, but the grocery products are written in Bahasa Melayu (with probably a half of them written in English). While it seems that their aim if more towards the Malay community, this system is very crippling for everybody since from my perspective, it seems that this store somehow doesn’t sell salt or butter when I do a product search (before I realize that I suppose to write “garam” and “minyak” respectively, more Malay lessons to you).

Then I also looked into Tesco online grocery service, which is unfortunately a behemoth for them to compete. Of course, variety (advantage-Tesco hands down) is not their concern, they focus on selling food in a cheaper price.

And even then that part is debatable, it is way cheaper to Tesco for non-perishable things like Fab Anti Bacterial Detergent Powder 2.3kg (RM11.90 to RM13.90) and the Axe Deodrant (as of this writing, RM13.10 to RM 17.39), but there are things where Tesco is chaper than Pasar Tap, like the Talapia Merah (RM6.60 to RM4.99, get the Talapia Hitam instead). Of
course, maybe is the delivery efficiency under 2 hours of just RM3 would be their selling point.

I also did some calculations for the 3 of the packs (all 3 fresh groceries), all three of them are very inconsistent in their markup (albeit with some unsure variations in at most 5 of them since some of the vegetables didn’t mention their weight like the anak jagung (young corn) and the cendawan (mushroom)), Farmer Market Pack would save you RM8.30, Fresh Vege Pack would save you RM2.70, and infuriatingly, the Fresh Fruit Pack actually cost you an additional RM13.90, which does not bode well for how the company is ran.

Overall, it definitely has a market potential (and right now they are going to expand to Indonesia), but the way that their pack pricing work and seeing how expensive to buy a share from it, I’m quite iffy to invest in it.

P.S: A 16 second Ataplus video with seconds and seconds of flash slides with words & words is not something that will offer you any kind of attention.

http://www.pasartap.com/

Skolafund- Higher Education From Crowd-funding

A crowd funding website from a crowd funding website. I can see the market for this, as higher education institutions like colleges and universities are expensive and students that are poor (or smart to act poor) are desperate to use education to turn their lives around.

Plus, they are quite ambitious in that they want to expand their business in Southeast Asia and India (which is definitely a strong market given that there is a huge population & a huge poverty rate among India), and their minimum investment is the cheapest among them in RM300,000

Still, as an investor, how would I continue to consistently earn profit from this type of crowd funding given their nature of their main business (which as of this writing, they have a 52.17% rate of successful sponsorship & revenue, and the enthusiasm seems to be gradually decreasing) doesn’t seem to be as effective, and among the co-founders, not one of the is a Cheif Financial Offier (CFO)?

Overall, initially I was quite iffy about the business, but after reading I think that this is probably my first choice.

https://skolafund.com/

Neuroware- Blockchain, The Future

Easily the one where I have the least knowledge about, but their Ataplus video is educational and really well made (albeit  the aesthetic looks like Kurzgesagt- In A Nutshell), which shows that at least they know what they are doing in the educating part about a new invention in general.

When I first look at their website, I was quite shocked that there are no products to sell, and I found their only written paragraph that contains the information generic and boring. Then I read the ataplus page, which reveals that as a college student, I’m not in their customer base. By the way, for a company that supposed to be about financial protection, none of the 9 are outright related to finance in any way (the closest one is a blockchain advisor).

The name itself can easily be typed wrongly to Neurowave (Brain monitoring company) and Neurowear (Tokyo biological signal products).

Still, I can see this as a company that could be implemented around Malaysia in a subtle way, but still the enthusiasm towards this company is not really positive right now. Maybe a choice to invest, but given that it is a really now product that needs more time to learn than implemented, it is the most risky.

http://neuroware.io/

I would advertise it to their own blog and maybe I’ll send an e-mail to the companies to ask some questions, I’m sure that they would like some publicity.

https://blog.ata-plus.com/

Update: I got a quick Q & A session with Pasar Tap (Easily because I’m able to send the e-mail 2 hours earlier before my part time job), so please read and be more informed about the company, and good for them for actually reading the blogpost.

Pasar Tap (in italic, because I’m quite lazy to set the answering lines to blue)

Thank you so much for writing to us.

With regards to your queries, our clarification is listed as per below:

  1. Why do you think that your company is prosperous enough to offer a share worth RM60?

We’ve just done a reserve takeover of our initial enterprise and this current holding company has only 200,000 shares of stock. As mentioned in your blog i.e. “the price per share is insanely expensive.. which makes it seem like the growth of the company is limited”, we will issue new shares in the next round of funding.

  1. I think that the groceries list should also add English and information about the weight of the product to make it more consistent and easier to search.

On the usage of language on our website, we take note of your suggestion and will change it to English as soon as possible and we are in the midst of incorporating new features including product reviews so that users can rate and comment the products. We also take note that some of our products have incomplete detail. We are working on it. 

  1. If I invest in the company and I got your shares, how many months I need to wait before I get my first dividend, and after that how many months later I would get another one?

Our dividend policy will only start after year 3 and this is because we are on an expansion drive. Our target is to be valued at RM75mil after year 3 as we expand into Indonesia. The upside for 10% investment would be around 7x after 3 years. 

  1. If you did not reach the target investment from ataplus, what would be your next move and where would the accumulated investment go?

As we explained during the pitching session, PasarTap has very low cost-structure. If we do not reach the target investment of RM1.2mil, we will only focus on the Greater Klang Valley area instead of expanding to Johor Bahru and Penang. The investments would go into three areas i.e. technology enhancement, operations & mass marketing. 

If you have further questions on PasarTap, please do not hesitate to contact Hisham Talib at 016 366 3691 or we would be more than happy to meet you to explain the business in greater detail.

Now for Skolafund, courtesy of Ataplus

  1. What are the other products that the company would offer to boost their revenue?

Skolafund are looking to grow the funding volumes on Skolafund with the following:

(a) Create Scholarship – Service for SME companies, philanthropists to create, promote, manage & disburse scholarships on Skolafund.

(b) SkolaX- Expanding the focus of crowdfunding to include other higher-education related crowdfunding campaigns such as research funding, undergraduates’ projects and expeditions funding.

  1. If I have invested in the company, how many months would I need to wait to obtain my first dividend, and how many months later I would obtain my next?

Skolafund is a startup company, just over a year old. As per any startup company, in the early stages of our business, the success of Skolafund  depends on our ability to reinvest as much money as possible into the business, hence, it is unlikely that investors will get any dividend payout in the first few years. We will only start paying out dividends when the company is making significant profits.

  1. If the company failed to reach their initial investment in Ataplus, what would be their next step and how are they going to do with the money they have accumulated.

As stated in the Ata Plus website FAQs (http://www.ata-plus.com/faq), if the minimum amount is not reached within the listing period, the funding round has not succeeded. In this case, the business will not get funded and you as an investor will get refunded the total amount committed. All the committed funds are returned to investors.

Hope this helps. If you have any more queries, you can communicate directly with them @ syakir@skolafund.com.

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