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| Strategy |
| "It's all about relationships." |
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Bill
Richardson, General
Partner
HMS Hawaii Management |
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Global markets are increasingly
a major factor in the growth of companies. HMS uses its
relationships with the University of Hawaii and other Hawaii
business sources and the international relationships of
the general partners, limited partners and affiliates to
provide a flow of investment opportunities and to facilitate
the development of portfolio companies through such activities
as the transfer of technology and development of joint
ventures.
We invest in privately held companies. We balance the investments by investing
in companies at different stages of development, in different market areas,
industry segments and technologies.
We prefer to co-invest with other experienced venture capital
firms. We typically lead investment syndicates in Hawaii and
follow a
lead in non-Hawaii-based
companies. Our normal practice is to stage investments in a company,
timed to the company’s needs and performance. Our later
stage investment preference is to join in investments led by
our existing
investment partners.
Our preference is to hold a board seat on portfolio companies.
When that is not possible, we request observers’ privileges.
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| Track Record |
HMS has originated four
funds: HMS Investments I, HMS Investments II, HMS Hawaii
and HMS Hawaii III.
HMS Investments, a Hawaii limited partnership, was formed in September
1995. The fund is fully invested. More than 90 investment proposals were
accepted for review. Five opportunities were selected for investment.*
HMS Hawaii, a Hawaii limited liability corporation, was formed in January
1999. The fund is fully invested. More than 300 investment proposals were
accepted for review. Nine opportunities were selected for investment.**
HMS Hawaii III, a Hawaii limited liability corporation, was formed in March
2004. The fund is currently investing. To date investments have been made
in three opportunities.
These portfolio companies demonstrated:
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- An adequate number of investment opportunities occur
within Hawaii.
- The quality of deals is excellent.
- Valuations are realistic.
- Competition for investment opportunities is limited.
- Individual deals can be syndicated with venture capital
investors from out of state.
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* HMS
Investment was a first round investor in Digital Island
(ISLD), a Hawaii-based startup, and participated as a
board observer and invested in the next two rounds of
investment.
** HMS Hawaii has invested, committed and reserved for future investment
approximately 85% of the fund in eight deals in telecommunications,
Internet, mariculture and intensive aquiculture fields. HMS Hawaii
Management actively participates in portfolio company management.
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Community
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"I ha`aheo
no ka lawai`a I ka lako I ka `upena"
(good tools help the worker succeed) |
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HMS Hawaii
Management is committed to the community. Our goal
is to add to the economy by creating wealth, to provide
new business and new career opportunities. We know
that things don’t do very well in a vacuum. As
such, we are working to build tools and create an environment
that will nurture the promise of Hawaii. We believe
that venture capital investment is the most efficient
method of job creation.
To promote entrepreneurialism, develop deal flow and improve the prospect
of success, we helped:
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- Build University Connections in February 1999, as one
of the initial co-chairs, to help connect entrepreneurs
inside and outside the University of Hawaii with the
resources they need to succeed.
- Found Hawaii Business Entrepreneur Acceleration Mentors
(HiBEAM). Its mission is to help launch new companies
with excellent growth potential by providing expert professional
advice to selected startups at critical stages of development.
- Enable well-respected and knowledgeable Silicon Valley
venture capitalists and angels in Hawaii to get actively
involved in the entrepreneurial community, creating a “buzz,” providing
singular expertise to our portfolio companies and integrating
Hawaii into the Silicon Valley community.
- Promote entrepreneurial training, such as Guy Kawasaki’s
Bootcamp; John Dean’s Kipapa lecture series; business
plan competition and training by University of Hawaii’s
Entrepreneurial Training Center.
- Encourage the return of successful Hawaii entrepreneurs.
- Encourage the return of Hawaii residents who are involved
in high tech enterprises that fit Hawaii’s targeted
niche markets.
- Found the Entrepreneurs Foundation of Hawaii, a nonprofit
organization that helps develop a culture of community
service and philanthropy in early stage Hawaii companies.
EFH supports these companies, which have little time
and no spare cash to devote to anything but building
their businesses, through community involvement and community
investment.
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Hawaii’s potential in several
key areas is creating a business environment you won’t
want to miss. The State’s unique location gives it
unparalleled advantages in the ocean, earth and space sciences,
as well as civilian adaptation of technology developed
for homeland defense including remote health care delivery.
Its mid-Pacific location, as well as its strategic military
importance, makes Hawaii the communications hub of the
Pacific, opening doors for almost any information technology
business.
The infrastructure is in place and strengthening, and both US and Asian
venture funds are participating in this emerging Pacific Basin marketplace.
The appeal of Hawaii’s quality of life, its dual East-West character
and its time zone advantage are working together to build niche knowledge-based
industries that investors are now discovering.
From a business and investor perspective, Hawaii is also a staging platform…its
cultural and linguistic characteristics providing a comfort zone for Asian
businesses looking to expand westward and to US enterprises looking for
help in adapting their products or establishing a secure and neutral base
for Asian operations.
For more information about Hawaii and venture capital, please visit:
DBEDT -
Hawaii Department of Business, Economic
Development & Tourism
University
Connections - Helps connect entrepreneurs inside
and outside the University of Hawaii with the resources
they need to succeed
HiBEAM - A
Hawaii business and entrepreneur accelerator
Entrepreneurs
Foundation of Hawaii - A non profit organization
that helps develop a culture of community service
and philanthropy in early stage Hawaii companies
National
Venture Capital Association
UH
Angels - The first official angel investment
network in Hawaii
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