Food for thought, is the Government serious about bringing overseas talent back?

http://mediarakyat.net/2014/06/22/10684/

Food for thought, is the Government serious about bringing overseas talent back?

http://mediarakyat.net/2014/06/22/10684/

Food for thought, is the Government serious about bringing overseas talent back?

http://mediarakyat.net/2014/06/22/10684/

This is a good time to promote the other roadblock. Malaysian entrepreneurs are their worst enemy sometimes. 
Quality of the entrepreneurs itself

Yes Wei Loon, I always consider myself a novice and continue to listen, learn and evolve.

I think I'm long overdue working on my start-up tonight. Anyway, seriously if you look up Quora you'll find plenty of explanation of splits. It comes down to what deal you can strike without applying any formula. The real world is that not too many programmers will jump for joy at 20/80 and no salary. And I still haven't heard your success story yet having shared that I'm in a 50/50 two-cofounder arrangement via an accelerator.

Finally, I will say all your concerns is the reason why many start-ups don't start well or start at all, just waiting for the right conditions (e.g. an expert programmer who would take 20% or less who somehow loves your idea rather than his/her own and want to volunteer for a minimum 1-3 months, even putting his/her money in excitedly). IMO, what is more important is the chemistry of the two co-founders. They both should try working together first since there is vesting with 1 year cliff.  I'd say most start-ups don't last 1 year. When both co-founders are full-time, they discover/expose things and have to talk it out or split. 1 year is when the 2 persons can gauge the value each brings. Using an analogy, dating first before signing a pre-nuptial agreement seems reasonable. But if discussing the pre-nuptial agreement before dating and then saying that the other half should just get 20%, I think that was the last date.

I can counter in many ways actually. There are many answers to your questions on Quora. I've been through the co-founder thing through an accelerator programme. Everything is just a Google away. There are plenty of successful 50/50 two-persons start-ups in the valley and locally. I'm not saying it should be 50/50, I'm saying it should be more equal than 20/80 for the programmer to join you for free. But besides complaining you haven't shared your side of the story and how much success you've had with your own setup. When you say 'us', did you mean 'me'?

Care to share what worked for you?

I guess everybody is free to negotiate a deal that seems fair to all parties involved (or what we can get away with). My theory is if it is an internet start-up business, the programmer could also start a business and give the business person 50% equity then only put together a fund. Instead of the programmer joining someone's idea, getting 20% equity and even have to put in funds.. all that before being directed around because 20% has no decision power. In fact I've seen 50/50 work many times, esp. early stages. Just putting my opinion out here (for a more balanced view from a techie/business person perspective), anyone is free to try anything that works for them. I only hope that more start-ups be successful rather than die because of unnecessary power/equity struggle.

Great, I'm sure you will work out a model that fits Malaysia's climate. I think Malaysia's only raw competitive advantage is the entrepreneurial spirit. We've learned not to rely on government and many believed since when they were young that they will grow up with limited opportunities - there will be no government or bank jobs for me and I shouldn't even expect to become a prime minister someday in my lifetime.

So what can I do? Business I suppose. After all I only achieved 6A's in SPM, my only option was to look overseas and my parents had to fund my expensive studies and living abroad. After working overseas for almost a decade, I miss my parents and so decided that only if I start building a business can I leave my office in Australia and physically be in Malaysia with my family. This is the pain that most overseas-based Malaysian can relate to and fuels their entrepreneurial spirit. To take control of one's limited time on earth, help our family and perhaps change society for better.

Brain drain can be solved if the Government is more genuine in bringing overseas Malaysian back. TalentCorp's incentives (Overseas Outreach Programmes) seem insincere and it will only be taken seriously if there are incentives to buy property. Car incentives just doesn't cut it IMHO.

To start an accountancy business, you need accountants. You either pay them or you give them substantial equity, you can't tell the accountant that there are other roles in the company like designer, finance, operations, user managers and so they should be happy with 20% equity and no salary.. and expect them to join you?

The same applies to an Internet start-up. To start an Internet startup, you need programmers. You can't offer 20% equity and no salary either. Esp. in a market when there isn't that many great programmers around. 

I do agree that there are start-ups that do not need as much tech. In those cases, perhaps the business founder can pay the programmer instead.