Is Equity-Financing Always Optimal for Innovative SMEs? --How ...

第 25 期innovation capability does not necessarily mean these businesses should all be scalable andwilling to realize huge exit values. To justify my argument, I introduce three examples in thefollowing section.4.Case StudiesCase A. YEIL ELECTRONICS 7Co., Ltd.: High TechThe company manufactures and supplies electronic components such as “York and Pin”battery for mobile devices, and also manufactures “Plate Assembly parts of Li-ion battery forelectric vehicles.” It applied for technology valuation in 2010 to KOTEC. I, along with twotechnology business evaluators with doctoral engineering degrees, took a half-day duediligenceincluding in-depth interview with the CEO, Mr. Kang.He was a down-to-earth, self-made person who entered into business world right aftergraduating from an engineering high school. Working through years at a company in asimilar field and running his own business for more than 15 years, he further educatedhimself while maintaining a high level of self-discipline at work.Until now, he has patented three of his own ideas in and out of Korea. In terms of EVA,the company’s supply to Samsung Electronics and BMW takes only a small fraction.However, thanks to an extremely distinguished method of assembly, he came up with amethod that enables mobile batteries to be smaller and thinner. The company was enjoyingway higher margin than industry average. Also, his company was only recently doubled insize after 13 years of operation thanks to the rise in demand for electric vehicles.7 Please see http://www.yeilelec.com/en/index.htm for the reference150