Midana Capital’s deck is less of a traditional startup pitch and more of a retail investment seminar. Spanning 95 slides (24 provided for this teardown), it begins by highlighting Malaysia's record household debt of 86.8% of GDP (Slide 2) to create urgency. The core thesis argues that traditional investments like property and fixed deposits are insufficient, suggesting that 'the rich' are instead investing in Chinese SMEs and OTC markets. The deck culminates in a specific pitch for 'Tian Xia Yi Shui,' a ginseng drink company, offering 3 million shares at HKD 1.30 (Slide 24). While it provides…
Key takeaways
- The deck uses fear-based marketing by citing Malaysia's household debt hitting 86.8% of GDP in 2014 as a reason to seek higher returns (Slide 2).
- It explicitly dismisses standard 4% interest savings, claiming RM 100,000 only grows to RM 300,243 over 30 years, which it deems inadequate (Slide 5).
- The investment strategy focuses on the 'Hong Kong Over-The-Counter' (HKOTC) market, founded in 2012, as a bridge to main board listings (Slide 9).
- Midana Capital identifies as a 'seed-to-exit venture capital group' and a member of the GUST investment platform (Slide 10).
- The deck targets the Chinese SME market, noting that 98% of Chinese enterprises are SMEs and contribute 60% of GDP (Slide 11).
- It uses historical stock performance of companies like Medifast (140x growth) and Deckers Outdoor Corp (32x growth) to illustrate the potential of small-cap stocks (Slides 15-16).
- The specific investment opportunity is 'Tian Xia Yi Shui,' a ginseng drink manufacturer located in Jilin, China (Slide 22).
- The financial ask involves 3,000,000 shares at a selling price of HKD 1.30 with an estimated 5-year exit via M&A or IPO (Slide 24).
Deck Overview and Macroeconomic Hook
Slides 1-3: The Urgency of Investment
Midana Capital opens with a stark red title slide labeled Economy & You . The narrative immediately shifts to a macroeconomic problem on Slide 2, citing a 2014 report from The Star stating that Malaysia's household debt had reached 86.8% of GDP, the highest in Asia. This slide uses a bar chart to show the composition of debt, dominated by property and motor vehicle loans. Slide 3 poses a rhetorical question to the reader: "Is investment crucial now?" This sequence is designed to create a sense of financial insecurity, positioning the company's offering as a necessary solution to a systemic economic problem.
Slides 4-6: The Case for China and Private Equity
Slide 4 lists "usual investment options" such as equities, property, and forex, but Slide 5 quickly dismisses them. It compares a 4% interest savings account (RM 100,000 becoming RM 300,243 in 30 years) against "Stock Speculation," which it labels as "Dumb" if one buys high and sells low. Slide 6 introduces the core thesis: the rich are investing in China. It uses logos from The Economist, Financial Times, and Forbes to claim that Chinese enterprise growth and profits exceed those of the US, though it does not cite specific articles or dates for these claims.
Slides 7-9: The OTC Mechanism
Slide 7 provides a comparative table for Caring Pharmacy Berhad , showing that investing at the Private Equity (PE) or OTC stage yields significantly higher profits (500% and 350% respectively) compared to Mainboard (MB) investing, which it claims is "only surviving." Slide 8 transitions to the specific method of investment: Through Over-The-Counter Invest Oversea . Slide 9 introduces the Hong Kong Over-The-Counter (HKOTC) market, founded in 2012. The slide describes HKOTC as a standardized financing platform for SMEs and startups, intended to serve as a bridge to main board listings.
The Midana Capital Identity
Slides 10-12: Company Mission and SME Focus
Slide 10 defines Midana Capital as a "seed-to-exit venture capital group." It claims to invest across all stages, from angel to IPO, and highlights its membership in GUST , a global platform for early-stage investment management. Slide 11 focuses on the Chinese SME landscape, stating that 98% of Chinese enterprises are SMEs, contributing 50% of tax revenue and 60% of GDP. Slide 12 features a photo of a businessman (unnamed on the slide) and asserts that Private Equity investors "would still make their millions" in these cases, directing the reader to "Ask our advisor" for the reasoning.
Slides 13-17: Historical Benchmarks and Justification
The deck uses several slides to provide "proof of concept" for small-cap investing. Slide 14 quotes a Telegraph article stating that "big companies cannot grow as quickly as small ones." Slides 15 and 16 show the stock charts for Medifast and Deckers Outdoor Corp , highlighting share price changes of 140x and 32x respectively since 1999. Slide 17 features a press release about Bio-Path Holdings moving from OTC to NASDAQ, claiming a 10x profit in two years and noting that at least nine similar companies have made this transition recently.
The Specific Opportunity: Tian Xia Yi Shui
Slides 18-21: The Beverage Industry Context
Slide 18 mentions SINOPEC selling 30% of its retail equity for USD 300 million (though the slide text says million, the headline suggests a larger figure in CNY) to prove that retailing equity is a standard practice. Slide 19 shows a listing ceremony for XFC on the HKOTC in 2014. Slides 20 and 21 pivot to the beverage industry. Slide 20 discusses Wong Lo Kat (herbal tea), and Slide 21 provides data on the China Canned Drinks industry, noting it is worth RMB 1.2 Trillion with JDB leading at 12.33% market share.
Slides 22-24: The Ginseng Drink Pitch
Slide 22 introduces the target company, Tian Xia Yi Shui , and its products, ShenGongShenPo ginseng drinks. Slide 23 creates a "problem/solution" dynamic by showing Google search results for "China water pollution," then claiming that demand for health drinks from clean sources like Jilin will "fly sky high." Finally, Slide 24 presents the "Ask." Midana Capital is offering 3,000,000 shares at HKD 1.30 . The slide compares the potential ROI to industry giants Red Bull (RMB 14 Billion) and JDB (RMB 20 Billion), suggesting that even a 0.01% market share would result in a 1.2-fold return, while 1% share could lead to a 120x ROI.
What Works / What is Missing
What Works
Macroeconomic Context: The deck does a thorough job of setting the stage by using real-world economic data (household debt, SME GDP contribution) to justify why an investor might look for alternative assets. · Sector Specificity: Unlike many generalist VC decks, this focuses heavily on a single niche—the Chinese herbal/ginseng beverage market—and provides relevant industry stats for that sector. · Visual Benchmarks: Using well-known stocks like Medifast and Deckers provides a clear, if optimistic, mental model for the type of returns the firm is targeting.
What is Missing
Management Team: There is no slide detailing the leadership of Midana Capital or the executive team of Tian Xia Yi Shui. For a 95-slide deck, the absence of human capital profiles is a significant red flag. · Use of Funds: While the share price and volume are stated (Slide 24), there is no explanation of how the capital will be used—whether for factory expansion, marketing, or R&D. · Unit Economics: The deck discusses market share but omits the cost to produce one can of the drink, the wholesale price, and the retail margin. · Risk Factors: Given the emphasis on OTC markets and international investing, the total lack of a risk disclosure or regulatory compliance slide is a major omission.
Founder Takeaways
Use macro data to build a 'Why Now' story. The way Midana uses the 86.8% debt figure (Slide 2) is a masterclass in creating a sense of urgency. Founders should look for a single, powerful statistic that makes their solution feel like a necessity rather than a luxury.
Benchmark against recognizable winners. By showing the growth of Medifast (Slide 15), the deck makes a high-risk OTC investment feel like a proven path. Founders should find "spiritual predecessors" in their industry that have successfully exited to help investors visualize the upside.
Bridge the gap between the abstract and the specific. The deck moves from "The Global Economy" to "China" to "Beverages" to "Ginseng Drinks." This funneling technique helps lead the investor down a logical path toward the final ask. However, founders must ensure they don't lose the investor in the macro—eventually, you have to talk about the product and the team, which this deck fails to do effectively in the provided slides.
Frequently asked questions
- What is the primary investment vehicle proposed by Midana Capital?
- Midana Capital proposes investing in Private Equity (PE) and Over-the-Counter (OTC) equities, specifically targeting Chinese SMEs. Slide 9 introduces the Hong Kong Over-The-Counter (HKOTC) market as a primary venue, while Slide 24 details a specific offering for 3 million shares in a ginseng beverage company at HKD 1.30 per share.
- How does the deck justify investing in the Chinese beverage market?
- The deck cites the massive scale of the Chinese canned drink industry, valued at RMB 1.2 Trillion with 18.8% growth (Slide 21). It further argues that high levels of water pollution in China (Slide 23) will drive 'sky high' demand for natural, clean water sources and health-focused ginseng drinks from the Jilin region.
- What historical examples are used to validate the strategy?
- Midana uses several 'success stories' to anchor expectations. These include Medifast Inc., which grew 140 times from a USD 0.19 share price (Slide 15), Deckers Outdoor Corp, which grew 32 times (Slide 16), and Bio-Path Holdings, which reportedly saw a 10x profit after moving from OTC to NASDAQ (Slide 17).
- What are the projected returns for the 'Tian Xia Yi Shui' investment?
- Slide 24 presents a tiered ROI model based on market share capture. It suggests that capturing just 1% of the market share held by competitors like Red Bull or JDB could result in a 120x ROI, while even a 0.01% market share would yield a 1.2-fold return for the investor.
- Is there a clear exit strategy for investors?
- The deck mentions an 'estimated 5 years leap board / M&A' timeline on Slide 24. This suggests the goal is either a listing on a major stock exchange (Main Board) or an acquisition by a larger beverage conglomerate, though no specific potential acquirers are named.
