Reasons Why a Venture Capital Firm in Singapore May Not Invest in Your Startup

Venture Capital Firms in Singapore

Getting financial support from a venture capital firm in Singapore is your biggest dream today as the city-state is, currently, the leading destination for venture capital financing in Southeast Asia. Great! But, while chasing the investors, there are chances that you might end up neglecting the factors that can drive them away from you. As an entrepreneur planning to raise capital, it is your biggest responsibility to ensure that you do everything the right way so that when the time comes to convince an investor, you don’t have to struggle much and things go smoothly. 

The VC industry in Singapore is still in its nascent stage, so any venture capital firm in Singapore would like to pour their dollars in startups that have proved their perfection in every aspect. Right from your first approach to your ultimate reaction on the rejection or acceptance of the investors, everything will come under the scanner. So are ready?

Here’s a list of factors that can disappoint an investor.

A Cold-call

You’ll simply invite a disaster by making a cold-call. Simply sending your business plan to the investors including VC firms and angels will do no good. It is only through a reliable recommendation that you can grab their attention. 

You Haven’t Proved Your Startup Potential

You are saying you have a great idea but where’s the proof? Have you tested your products or services on a set of beta customers? You have to have a strong value proposition to show the investors how sizable and scalable the market is. Unless you prove it, forget about the capital.

Your Idea Is Not Unique

If you approach a renowned venture capital firm in Singapore with a product or service which is already there in the market; in other words, something which is not in demand, the investors will move back. You have to think of a unique business plan so that you can tell the investors where you see your startup in the next 5 years. 

You Have A Poor Marketing Strategy

A great marketing strategy always drives demand for a product/service. If you fail to build a strategy strong enough to attract customers, then how will you convince the investors? You are ready to sell your product but if you don’t have a prior plan for boosting the sales and gaining a competitive advantage over your rivals, you have to stumble at every step. In such a scenario, it is impossible to gain the trust of an investor.

Your Team Lacks Efficiency And Doesn’t Believe In Teamwork

What comes next to a unique business idea is a highly talented, smart and efficient management team your company. The investors, typically, invest in people and not the product or service, co they want to ensure that the team they are investing in is creditable. Now if you have a team which is not just inefficient but also doesn’t believe in teamwork, you are nowhere.

You Are Not In Front Of The Right Investor

This is a very common mistake that the first-time entrepreneurs like you often do. So long you are knocking the wrong door, you won’t get access to the capital you need, as simple as that. The investor will either not respond or tell you straight on your face that you are in the wrong place.

You cannot Handle Rejection

If you are an entrepreneur, you have to learn to take things sportingly. Handling rejections is an art and not everyone can do this so calmly. But you have to and if you cannot, they won’t take time to say Good-Bye.

You Are Not Being Honest

Investing in a startup is a matter of great risk so if you are inviting someone to invest in your startup, you have to be very honest in your dealings. Do not keep things from your investors, at least, those things that can, directly or indirectly, have an impact on the investment. If they get to know about your dishonesty, it’s over.

Conclusion

So these are some of the points that you must have to take care of while approaching a venture capital firm in Singapore. For more information, you can consider becoming a part of an intelligent network like Merger Alpha that will take you one step closer to the right investors. Do visit Merger Alpha at http://www.mergeralpha.com/.

You can also leave your queries in the comment box given below.

Venture Capital Financing In Singapore: Things You Need

Venture Capital Financing in Singapore

Like many other startups in Asia, you too are planning to raise venture capital financing in Singapore and I hope you have got all the right things at the right place. Haven’t you? Singapore is currently the most developed destination in Southeast Asia in terms of venture capital financing. The government along with many private VC firms is giving an immense boost to the startup ecosystem and we can definitely expect to see more startups like yours scaling up to reach a profit-making stage.

However, you must ensure that you are always equipped to approach your potential investors at any point of time. Here’s a list of some of the most important things you must have for venture capital financing in Singapore.

• ·         A unique business idea.
• ·         A sizeable and scalable market.
• ·         A strong value proposition to convince the investors.
• ·         An efficient management team.
• ·         A personal savings that you can invest.
• ·         Ability to demonstrate market tractions.
• ·         A strong social network.
• ·         An intelligent network (not compulsory but vital)

The startup industry of southeast Asia is highly competitive. Everyone is looking for a single opportunity to stand in front of the venture capitalists. And out of, say 100 entrepreneurs they meet, they select not more than 2 or 3. So there is very high chance that the investor will not even bother to look at your proposal but you can still compel them to pay attention if you have all the above things in proper order.

Venture capital financing in Singapore is a rising industry. There’s a lot more scope for new investors to arrive, so you’ll get enough opportunities to meet them but you also have to see that you are missing out on the current market opportunities. It is ideal to leverage the demand as much as possible before your competitors arrive. If your idea is still unique, it is best if you can manage to raise capital as early as possible.

Venture capital firms often prefer to invest at the growth stage or the later stage. However, there are still many who invest in early stages but only for startups with high-growth potential. It is best if you explore various types of funding methods simultaneously as you never know what suits you best.

Also, the last point that I discussed above is vital for every entrepreneur. Try to become a member of an intelligent network that offers a common platform to entrepreneurs (like you), strategic and financial buyers and advisors of the startup ecosystem. This will benefit you in the way that you will get easy access to a suitable investor without wasting your valuable time and money. In simple words, you will opt for a cost-effective approach.

For more information on venture capital financing in Singapore, feel free to get in touch with us at Merger Alpha http://www.mergeralpha.com/. Have you raised funds for your startup till now? If yes, how did you identify the right investor? Feel free share your experiences or leave your queries in the comment box given below.

4 Vital Points To Remember For Capital Raising In Singapore

Capital Raising in Singapore

Capital raising in Singapore has become much easier with the entry of large number of venture capital firms from within the city-state and abroad. There are both private and government-backed venture capital firms in Singapore that are together boosting the startup industry with capital and necessary management and financial guidance. If you are currently looking for suitable investors for capital raising in Singapore, below are certain things that you need to be aware of.

Points You Should Always Remember While Capital Raising In Singapore

·         It Is The Investor Who Is Important, Not The Firm

As a first-time entrepreneur, you might not figure out the difference between chasing a firm and chasing an investor; there’s a fine line between the two but the impact is often significant. Each person is different; the person may have his/her own way of thinking and liking, so you never when and how a particular investor gets attracted to your business plan.  Explore your social network through which you might be able to get the person who can introduce you to a suitable investor. Once you find an investor who is interested in your sector, start chasing him/her, but smartly of course.

·         Follow Your Potential Investors Everywhere

It is just where we ended in point number 1, i.e. following the investor. Follow in such a way that you gradually attract them towards you without bothering them much. Remember, the venture capital industry in Singapore is quite new, so the new VC firms are also deliberately looking for investment opportunities. Try to make yourself noticeable at all cost. This is possible if you start following them on social media, follow their blogs and leave your comments and unique ideas whenever and wherever possible. In simple terms, try to be unique while chasing your investors.

·         Utilize Your Personal Savings If Possible

Using your personal savings as your first source of capital can benefit you immensely. If you have sufficient savings and you are confident about the business idea, try to contribute at least 25 to 50 percent from your side. If that’s beyond affordability, try at least 10 percent. This will build confidence in your investors. Venture capital raising in Singapore is still in its nascent stage so try to make the investors feel secure about the investment, or else, there are many who can snatch the opportunity from you.

·         First Impression Is The Last Impression

The first meeting with the investors is, often, a make or break situation. Try to bring the best out of you and make your pitch extremely exciting and appealing. The words you speak should reveal your confidence in the business idea you have come up with. The more confident you are; the easier it will be for them to gain confidence in the idea. But, maintain the distance between confidence and over-confidence as the later has a great potential to ruin your capital raising campaign. Be careful!

Conclusion

Today, there are ample options for capital raising in Singapore such as government funds, angel investors, venture capital firms and private equity funds. All you need is a unique business plan, a sizable market, a sound value proposition, a great management team and then, the ability to identify the right investor.

You can also become a part of an intelligent network like Merger Alpha that can offer you the much-needed platform to showcase you business ideas and get easy access to your potential buyers, sellers and financial advisers. If you find the idea appealing enough, feel free to get in touch with us at Merger Alpha http://www.mergeralpha.com/.

You can also leave your queries in the comment box given below.

Good Luck!

Top Firms You Can Approach for Venture Capital Financing in Singapore

Venture Capital Financing in Singapore

If there is one thing that can lay a strong foundation to any business, it is capital. Without capital, it is impossible to think about establishing a company and earning revenues. For entrepreneurs who are wandering in search of suitable investors for their startups, Singapore has emerged as a great destination. The industry of venture capital financing in Singapore is increasingly getting developed owing to the large number of venture capitalist entering the sector every year.

Today, there are numerous local and international venture capital firms located in Singapore that are looking for opportunities to pour their money on unique business ideas. Some are government-backed while some are private and together these firms have given a significant boost to the startup industry in Singapore.

Here’s a list of some of the most prominent VC firms that are ready to offer immense support to high-potential startups seeking venture capital financing in Singapore.

List Of Firms Offering Venture Capital Financing In Singapore

Ardent Capital

- Industry Preference – Technology with focus transactional commerce and advertising businesses.
- Stage Preference – Early stage investments.

Adams Street Partners

- Industry Preference – Software, enterprise software, biotechnology, etc.
- Stage Preference – Seed stage, early stage, later stage and private equity investments.

Carlyle Group

- Industry Preference – healthcare, software, web hosting, etc.
- Stage Preference – Early stage, later stage and private equity investments.

Extream Ventures

- Industry Preference – Software, social network media and enterprises.
- Stage Preference – Seed and early stage investments.

GGV Capital

- Industry Preference – Consumer products and services, healthcare, internet, networking, telecommunication, etc.
- Stage Preference – Seed stage, early stage, later stage venture investments, private equity and debt financing investments.

Gobi partners

- Industry Preference – Digital media and digital technology.
- Stage Preference – Seed stage, early stage and later stage venture investments.

Golden Gate Ventures

- Industry Preference – Software, ecommerce, enterprise software.
- Stage Preference – Seed stage and early stage investments.

Innosight Ventures

- Industry Preference – IT, mobile applications, gaming, infrastructure, security and internet marketing and finance.
- Stage Preference – Seed stage and early stage investments.

Intel capital

- Industry Preference – Digital media and entertainment, computing, software services, mobile, consumer internet, etc.
- Stage Preference – early stage and later stage investments.

iGlobe Partners

- Industry Preference – Manufacturing, cloud computing, software.
- Stage Preference – Early stage and later stage investments.

JFDI.Asia

- Industry Preference – Mobile and digital media.
- Stage Preference – Seed stage investments.

Jungle Ventures

- Industry Preference – Mobile, ecommerce, curated web, etc.
- Stage Preference – Seed stage and early stage investments.

Merger Alpha

Merger Alpha is a Singapore-based M&A platform, an intelligent network,that connects business owners to their strategic and financial buyers and advisors of the startup ecosystem.

TNF Ventures

- Industry Preference – Media, technology, telecommunication, medical and eco-related products and services.
- Stage Preference – Seed stage and early stage investments.

Upstream Ventures

- Industry Preference – IT, software, internet, security, biometrics, IDM and semi-conductors.
- Stage Preference – Early stage investments.

Conclusion

With the government of Singapore actively involved in boosting the startup industry by launching various initiatives to attract investors, the city-state is emerging as an ideal destination for those looking for venture capital financing in Singapore. What can further help the entrepreneurs is an intelligent network that can not only give them easy access to capital but also reduce the time required to find the right investor.

If you too are planning to raise capital for your newly-started business, feel free to visit Merger Alpha at http://www.mergeralpha.com/ , the intelligent network where you can get in touch with your potential investors and financial advisors without wasting your valuable time.

You can also leave your queries in the comment box given below.

Good Luck!