Small Investors To Mine Gold : A Risky But Lucrative Investment

The rise and fall of economy always affects the currency in our pocket. In such a scenario, investment is a good way to safeguard your family’s future or if that’s not a fear in your case then at least you can make huge profits for yourself. These days, the gold mining companies are gradually emerging as a hot investment option although it involves huge amount of risk – but then, no risk no gain. The greater the risk, the more is the return on your investment.

Now the question is what actually prompts the investors to mine gold? Why they are increasingly getting attracted towards the gold mining ventures? Gold is a Nature’s gift – a precious, costly metal that has long been a status symbol for people around the world. The shinning yellow colour of the metal easily appeals to the eyes and therefore it has always been an integral part of social ceremonies in many parts of the globe. The price of gold keeps changing at regular intervals although there is no certainty – at times the price rises to peak and very next moment it may fall drastically.

However, the fact still remains that the metal is one of the greatest treasures on this earth and therefore investment in its origin has proved to be a wise choice. If you are also planning to join the league of investors heading to mine gold, you typically have certain choices to make.

Firstly, you can choose to purchase the mining company itself, either in whole or in part. In this case, you become the owner of the company and get directly involved in the mining project. The return on your investment will depend upon your own and your employees’ competency.

As a second option, you can buy a share of the mining company. In this case, you are not the actual owner but will simply wait for your return on your investment once the management team of the company comes up with huge profits. If it is a short term investment, you will be paid back quickly and if it is a long term one, you can definitely expect to get a huge ROI.

You can also consider investing in a mining startup. There are many ventures looking to raise funds for the initial operational costs. This is quite a profitable option as you are offering the capital as a loan to the company with the expectation of a good return without directly getting involved in the management team or facing any hardships.

Usually, it is next to impossible for such startups to raise funds from the conventional sources like banks and other financial organizations, so they are often ready to offer extraordinarily high returns on your investments which might range from 40% to 50% to even 100%, and that too within 2 to 3 years.

Finding a suitable investment opportunity is a matter of great joy and gold mining, being a booming business, is always a good option. You can talk with the management of a company, know about the deal and, if needed, place an offer from your side as well. Such deals are often negotiable and have huge potential to earn revenues.

For more information on investment in gold mines, feel free to visit http://mergeralpha.com/

A Brief Overview Of The VC Industry and a List of A Few Venture Capital Firms in Singapore

Of all the Southeast Asian nations, Singapore is till now the most advanced in terms of venture capital funding. Since the 1980s, the government of Singapore has been extremely supportive towards the venture capital industry. The latest policies and amendments made by the government are all in favor of the VC industry and thus there has been a significant increase in the number of venture capital firms in Singapore over the last few years. Till now, the government has proved quite active in creating a favorable environment for investments.

Today, Singapore is a favorite destination for the technology startups across Asia. The venture capitalists are mostly attracted towards technological innovations and advancements and this has proved a boon for the entrepreneurs associated with the sector.

Apart from the venture capitalists, there are angel investors and private equity funds also looking for suitable entrepreneurs around the country. The seed stage startups mostly approach the angel investors as these groups are more into encouraging the startups to grow successful although the capital they offer is much less than what the VCs offer.

The venture capital industry, although still in its early stage in Singapore, are more powerful than any other investor. Their growth story started ever since the Techno pruner ship Investment Fund was established in 1999 which gave a significant boost to the VC industry in Singapore. The fund was created to attract more and more VCs from the overseas to open there investment operations in Singapore.

They mainly aim at profit making and are very particular while selecting the portfolio company. Typically, these investors prefer to invest in the second or third round of financing just to make sure that the company has reached a considerably safer position. However, they can also choose a seed-stage startup provided they consider it unique and highly-potential.

The unique market of Singapore is another great reason behind the success of the venture capital industry. The country enjoys a stable financial, political and social environment which frequently attracts entrepreneurs from around the world to establish their startups in the county and serve the potential customers. Needless to say, this in turn motivates the VCs to target the market as there are numerous lucrative opportunities.

An entrepreneur looking for a suitable Venture Capital firm in Singapore has to have a unique business plan (to some extent supported by his personal savings), a great management team, a unique business model, a sizable market and a strong value proposition to convince the investors.

Here are a few of the most popular venture capital firms in Singapore:

Jungle Ventures, Intel capital, Siquoia Capital, Singtel Innov8, Vertex Venture, Walden International, Golden Gate Ventures, Rebright Partners, Gobi Partners, Extream ventures, JFDI.Asia, JAFCO Asia, Infocomm Investments, Adam Street Partners, TIF Group and many others. These investors have their own preferential sectors based on which they select their portfolio companies. They usually prefer to invest in the sector they are familiar with. Apart from offering capital, they also offer other value added-services like mentorship and guidance, exit facilities and a strong network.

While investing, these investors evaluate various factors regarding the startup such as, the team and other investors behind the company, the market opportunity and trends, financial status of the firm, how much they want to raise and how they will utilize the fund and most importantly their managerial and financial knowledge.

The most important thing that the VCs focus on is the management and what entrepreneurs should focus on is a realistic valuation of their business. If everything falls in place, it won’t be that tough for a startup to find a suitable venture capital firm in Singapore.

For information on venture capital in Singapore, feel free to get in touch with us at http://mergeralpha.com/

Venture Capital Firms In Singapore Along With Their Stage And Sector Preference

Venture Capital In Singapore

Today, when it comes to capital raising in Singapore, startups have a wide variety of options. With the significant growth in the number of venture capital firms in Singapore, especially driven by the favorable government policies and tax incentives, the entrepreneurs in Southeast Asia are more confident about starting their dream ventures.

If you are one those entrepreneurs searching crazily for a Venture Capital firm in Singapore, here’s a list of some of the most renowned venture capitalists in the country along with their preferred sector and stage of investment. This will help you easily sort out a few suitable investors for your newly-started business.

Before you approach them, make sure you have all the vital things prepared like a unique business plan, a sizable and scalable market, a strong value proposition, an innovative business model, a smart and efficient management team and ample knowledge about management and finance.

A List Of Venture Capital Firms In Singapore

Gree Ventures

•    Investment Stage – Seed stage, Early stage and Later stage.
•    Sectors – Ecommerce, Fashion, Advertising.

Hera Capital

•    Investment Stage – Seed stage investments.
•    Sectors – Consumer, Retail, Media and Technology

IMJ Investment Partners

•    Investment Stage – Seed and Early stage investments.
•    Sectors – Technology, Education, etc.

Infocomm Investments

•    Investment Stage –Seed and early stage investments.
•    Sectors – Consumer Web, Mobile Applications and Infrastructure, SaaS and Cloud Infrastructure,

Games and Enterprise IT.

Intel Capital

•    Investment Stage – Seed, Early and Later stage, Private Equity and Debt Financing.
•    Sectors – Software, Mobile, Enterprise Software

Fenox Venture Capital

•    Investment Stage – Seed and Early stage venture investments
•    Sectors – Finance, Mobile, Hardware and Software

Digital Media Partners

•    Investment Stage – Early and growth stage investments.
•    Sectors – Digital Market and Consumer Internet.

New Asia Investments

•    Investment Stage – Growth stage investments.
•    Sectors - Med Tech, Clean Tech, industrial innovations.

Pivotal Asia Ventures

•    Investment Stage – Early stage startups.
•    Sectors - Technology

Rebright Partners

•    Investment Stage – Early stage startups and Series A investments.
•    Sectors – Ecommerce, Social Commerce and Restaurants.

SBI Ven Capital

•    Investment Stage –Growth stage startups.
•    Sectors – Financial Services and Technology.

Sequoia Capital

•    Investment Stage – Seed, Early and Later stage and Private Equity investments.
•    Sectors – Software, Mobile, Enterprise Software

Singtel Innov8

•    Investment Stage – Seed, Early and Later stage.
•    Sectors – Mobile, Advertising and Social Media.

Vertex Venture Holdings Limited

•    Investment Stage – Seed, Early and Later Stage investments.
•    Sectors – Travel, Ecommerce, Mobile

Golden Gate Ventures

•    Investment Stage – Seed and Early Stage Investments.
•    Sectors – Software, Ecommerce, Enterprise Software

Jungle Ventures

•    Investment Stage – Seed and Early Stage Investments.
•    Sectors – Mobile, Ecommerce, Curated web

Majuven

•    Investment Stage – Seed, Early and Later Stage investments.
•    Sectors – Image Recognition, Health and Wellness, etc.

Conclusion

Today, the startup industry in Southeast Asia has attained a successful position. Talent was always there and now, with the entry of these professional investors, it has become easier for entrepreneurs like you to take your business to a successful position. Before you approach any of these venture capital firms in Singapore, make sure you go through their website and do an extensive research on the investors.

For more information on venture capital in Singapore, feel free to get in touch with us at http://mergeralpha.com/

Make Your Capital Raising In Singapore Easier With This List Of Top VC Firms And Their Preferred Sectors

The venture capital industry of Singapore is growing increasingly popular. Owing to the favorable government policies and tax incentives, the investors are now getting increasingly attracted towards investment and this has significantly increased the number of startups in Singapore in the last few years.

If you are also one of those talented entrepreneurs planning for Capital Raising in Singapore for their newly-established businesses, here’s a list of some of top venture capitalists you might have been looking for. The names are followed by their preferred sectors so it will make it much easier for you to decide which investor to chase and whom to ignore. After all, it is better to have a proper knowledge of the interest of the investors or else, it might be wastage of time and nothing else. Don’t you agree?

Top Venture Capitalists in Singapore

•    Ardent Capital – Sectors: Technology, Advertising, Transactional Commerce, etc.

•    JFDI.Asia - Sector : Technology

•    Carlyle Group – Sectors: Real Estate, Infrastructure, Energy, Corporate and Private Equity.

•    Extream Ventures – Sectors: Interactive Digital media, Mobile and Wireless, Security, biometrics, Semiconductors, Internet, etc.

•    Innosight Ventures – Sectors: Internet Marketing, Mobile Application Development, Mobile Gaming, IT Security, etc.

•    Golden Gate Ventures – Sectors: Technology, Online Business, Finance, Mobile, etc.

•    Jungle Ventures - Sectors: Healthcare, Ecommerce, Digital Media and Entertainment, Search and Digital Marketing, Tourism. Etc.

•    Merger Alpha – An intelligent network of investors, entrepreneurs and advisers.

•    TNF Ventures – Sectors: Telecommunications, Technology, Medical, Eco-friendly Products/Services, Media, etc.

•    Singtel Innov8 – Sectors: Digital Content Services, Customer Service Enhancers, Next Generation Devices, Network Capabilities, etc.

•    Intel Capital – Sectors: Digital Media and Entertainment, Software Services, Computing, Mobile, Consumer Internet, Manufacturing Industry.Stream Global – Sectors: Mobile, Digital Media, ICT, etc.

•    Walden International – Sectors: IT and Software, Internet/Digital marketing, Cleantech, Semiconductors, Emerging technologies, etc.

•    FLAG Capital – Sectors: Real Estate, Energy resources, etc.

•    Gobi Partners – Sectors: Digital Media, Digital technology, etc.

•    JAFCO Asia – Sectors: Technology

•    Upstream Ventures – Sectors: IT, Internet, Software Services, Security, Biometrics, IDM and Semiconductors.

•    Mc Lean Watson Capital – Sectors: Technology, IT, Software Services, Telecommunications, Energy, etc.

Conclusion

It is not important to raise huge amount of money (more than what is needed) in the first round. You should rather focus on winning the trust of the investors. Once they consider yours a potential startup, money will automatically flow in. The only thing you need is a unique business idea which should be the only solution to an unsolved issue in the society. This will make sure that customers will run for your product or service and you must aim to make sufficient profit before the competitors arrive. Singapore is today a highly potential destination for the entrepreneurs, so make sure you don’t waste a single moment and grab the opportunity as soon as it knocks.

For more information on capital raising in Singapore, feel free to visit http://mergeralpha.com/

Options For Capital Raising In Singapore

The Southeast Asian startup market is getting bigger with government encouraging more and more private investors by offering them timely tax incentives. Today, the Southeast Asian nations are home to some of the most renowned private equity investors, angel investors and venture capitalists. Especially, Singapore tops the chart when it comes to a comparison between the startup ecosystems of the Southeast Asian nations.

The ease of Capital Raising in Singapore has lead to the growth of many new startups and entrepreneurs are now more confident about establishing new ventures in the country. When it comes to private equity financing, there are mainly three options in Singapore: angel investors, venture capitalists and private funds.

Angel investors are basically wealthy individuals who prefer to invest their money in high-potential and risky startups and enable them to stand as an established company in the market. They usually prefer to invest in the early stage ventures and share a percentage of ownership in the investee company. Their main motto is to support startups with great market potential and lead them to a successful position.

To fulfill this objective, the angel investors also share their knowledge and offer guidance and mentorship to the startups apart from funding just to make sure that the companies get an all round support to reach to a profitable position. Today, the angel investors are considered the best option for early-stage capital raising in Singapore.

Next is venture capital financing – a startup funding method that is already creating a buzz in the Singapore startup ecosystem. Venture capitalists are professional investors who pool money from wealthy individuals and invest it in various sectors like technology, software, energy, etc. – technology and innovation being the biggest attraction.

Venture capitalists are the most powerful and toughest of all investors as it is extremely challenging to convince a VC firm to invest in a startup. An entrepreneur has to do a great deal of planning before approaching a venture capitalist. These investors typically prefer to invest at a later stage when the startup has already raised funds and taken the company to a considerably higher level. However, they also choose to invest in a seed-stage startup provided it has a high growth-potential with a sizable and scalable market.

The main motto of the Venture capitalists is to earn huge profits and to ensure that, they even offer many value-added services to the ventures such as guidance and mentorships, exit facilities, networks etc. Unlike banks, the VCs do not expect an instant repayment; rather they wait for a period of 3 to 8 years to receive their share of profit which is much higher than the interest-included repayments in the case of bank loans. Typically, their expected rate of return is more than 25% for per year’s investment.

To successfully attract a venture capitalist, an entrepreneur needs to have a great business product/service, a planned investment proposal, a sizeable market, a strong value proposition and a smart, experienced and organized management team.

Unlike, the angel investors or the venture capitalists, the private equity industry is quite different. The private equity funds are typically run by financial institutions, banks or investment firms and they prefer to invest in companies that are already operational and exhibiting high growth potential. They restrict their offering only to financing and there is no knowledge sharing or mentorship involved in it.

The different types of private funds include independent funds, corporate funds and institutional funds. Based on their requirements, stage, level and sector, the entrepreneurs can choose the one method that is most suitable for their business.

For more information on capital raising in Singapore, feel free to visit http://mergeralpha.com/

Things You Need To Raise Venture Capital for Your Startup

Are you planning to raise venture capital for your newly started or already operational company? Raising capital is although not easy but you can still sail smoothly if you have everything is proper order.

Nothing can stop you if you have a highly potential business but still it is advisable that you learn to cope with rejections as it is quite a common thing for entrepreneurs to fail at the few attempts. The best part is, we always learn from our mistakes, so keep yourself motivated all the time. At the same time, make sure you are struggling (spending your time, money and energy) in the right direction, i.e., for the right investor.

Here’s a brief description of some of the most important materials required for capital raising.

•    A unique business idea.
•    A smart and organized management team.
•    A sizable and scalable market.
•    Business valuation.
•    Value proposition.
•    A planned and concise investment proposal.
•    Understanding your business and finance.
•    Knowing the VCs interest.
•    A detailed description of company’s development (if it is already operational).
•    Financial statements and projections.
•    Tax returns.
•    Know how and where to use the fund and how much to raise.
•    Show a potential exit strategy.
•    Hire a trusted lawyer.
•    The right attitude and ability to face rejections.

These are some of the vital requirements for any startup to raise Venture Capital in Singapore. The investors are very critical while selecting a company, so you must make sure that there is a logical and honest answer to whatever queries they have.

Your first pitch can be the deciding factor in your fund raising campaign. So make sure you include every small detail in it, in a very precise way. A professional pitch along with a great management team can go a long way in engaging the investors.

You must also have a strong network as it significantly increases the chances of your finding the right investor. In fact, having someone to recommend your name to an investor works instantly - the reason is quite simple – as the investment involves huge risk, the investors prefer to listen to the recommendations. It may come from an entrepreneur whom the investors had funded in the past or any reliable investor from their circle.

Another great way to get in touch with a potential investor is becoming a part of a network that serves as a common platform for buyers, sellers, investors and financial advisers across the world. Such a platform brings entrepreneurs closer to an investor and also helps the investors in finding a good investment opportunity.

For more information on capital raising, feel free to visit http://mergeralpha.com/

Important Materials for Capital Raising

Most businesses spend hugely on marketing and promoting their products or services. However, the one factor that often goes unnoticed is the requirement of a professional and comprehensive marketing material. A time may come when the owner would want to sell the company to boost its productivity and earn huge profits. But the task is quite challenging.

The first requirement is to take the company to a successful position from where it can easily grab the attention of a potential buyer. To achieve this, one needs to raise capital so as to take the company to that desired height. Here are the most important materials required for capital raising.

One must remember that without a potential product or service, there’s no sense in putting effort in fundraising. So, the first requirement is a great business idea with huge market potential. The entrepreneur should focus on increasing the efficiency of the company, of its team, rather than chasing the investors in a clueless way. This is the basic requirement without which one should not even dare to approach an investor.

Creating a professional pitch book – a planned investment proposal - is highly essential for any business. It serves as a reflection of the company’s mission, vision and values. It must have all the key statistics that a potential investor might want to see – such as, the company’s introduction, the level of financing needed, how the investment will be used and repaid, and other vital information like the products or services, marketing strategies, production capabilities, management team, financial projections and statements, tax returns, etc.

Having all the information and data in places not only saves time but also indicates professionalism. The investors are happy to see that the company they are exploring has put sincere efforts in addressing their key concerns. A successful investment proposal is one that can answer the basic queries of an investor, like, is it safe to invest in the business or how long will I have to wait for my ROI or how much profit will I make, etc.

If the company is already operational, then a detailed description of its development must be included in the proposal such as the name of the company, legal structure, share holders (if any) along with their percentage of share, acquisitions (if any), etc.

How the fund will be used and how much is required in that particular round of financing should be made clear to the investors. Usually the fund gets used in equipment, production, inventory, marketing, etc. If it is a loan, then the proposed repayment schedule along with cash flow projection should also be present.

The management team is one of the most influential factors in capital raising. There needs to be a description of the team members, their individual responsibilities, their qualification and experience and projection of their compensation for the next three years. If there is any probability of further recruitment, that should also be included.

The projected financial statement should consist of balance sheet, loss and gain, sales forecast, expected revenue, inventory schedule, etc. The proposal should also describe a potential exit strategy for the investors. Not necessarily that the investors will leave the investment too early but they will be relieved to know the certain potential moments when they can choose to exit the venture.

These are the most important Materials for Capital Raising and it is vital for any entrepreneur to focus on increasing the value of the company and then build a great presentation to convince a potential investor.

For more information on capital raising, feel free to visit http://mergeralpha.com/

No Matter Whether You Sell or Finance Your Companies, a Proper Business valuation Is a Must

The business you started a few years back has come to a stage where you are want to expand it further to increase your sales and make more profit. So what exactly are you planning to do? Sell it or look for an investor so that you get the required capital for its expansion?

Whatever be the idea you come up with, the primary requirement is determining the value of your business. Yes, that’s a must if you really want to increase the credibility of your business. It is the identity of a good leader to be able to critically judge his/her company’s current status. You have to come face-to-face with the strengths and weaknesses of your company, no matter how hard it is to face the negative ones. Unless you identify them, you cannot correct them and this will instantly bring down the value of your business in front of a buyer or an investor.

Business valuation is the only way through which you can determine the fair market value of your company. If required, you can hire a financial appraiser for the purpose.

Not only when you plan to sell or finance your companies, but you can do business valuation in normal circumstances as well. You can perform this activity in every 6 to 12 months. This is necessary for various reasons like managing your taxes, making a financial report or taking a bank loan, etc.

Every single aspect of your company will come under the scanner during the process – how you hire your employees, how you train them, how do they perform, your market traction, your revenue generation, your client base, your relationship with the clients and all other tangible and non-tangible assets you can think of.
Determining the value of a business is considered one of the most critical moments in our lives. Having an advisor by your side is highly essential. There are various methods of determining the value of a business and a good appraiser will always ensure that he applies the most suitable method for evaluation and gives your business the exact value it deserves.

Once you have determined the value of your business, you know that you are 50% prepared for the ultimate challenge. Rest 50% is how efficiently you reach your ultimate goal. Now it is up to you whether you want to Sell or Finance your Company based on which you will start looking for potential buyers or investors.

Having a strong network proves beneficial so make sure you have a strong social network. For more information on selling or financing your company, feel free to visit http://mergeralpha.com/

Tips for Raising Capital for Your Venture

Is this the first time you are planning to raise fund for your venture? Raising capital is a highly grueling task as you constantly have to identify your company’s strengths and weaknesses and assess the associated risk at each level. Finding fund however is not impossible and there are a variety of ways you can raise fund for your startup. Here I am giving you a few Tips for Raising Capital with the hope that these will make you a more confident person and help you choose a suitable startup funding campaign.

Firstly, there’s nothing like self-investment. If you have absolutely no personal savings, it’s OK but it really helps if you invest at least 25% to 50% from your personal savings, say, through your credit card or some other source. This gives significant credibility to your business and motivates other investors to pour money in your startup.

You can also raise money from your family and friends although it is not always the safest option as you run the risk of ruining your relationships. If you cannot repay as you promised, it might take them away from you forever. We all know how delicate these relationships are. Right? So, it is better not to take the risk if you have other options. However, if you are super-confident that there will be no such financial issues, you can definitely approach your family/friends for the capital.

Ok, have you tried crowd funding? Not a bad idea at all. It is the process of raising a small amount of money from a large number of people, usually done online. If everything falls in place, your crowd funding campaign can be a real success. Although there are fees associated with the process but there are also many benefits that you can get access to. Till now, over $2 billion has been raised through platforms like Indigogo, Kickstarter and others.

As your next option, you may think about taking bank loans which is, quite unfortunately, next to impossible. Banks and similar financial organizations do not prefer to invest in a startup, especially at a seed stage as the risk associated is huge.

Your next option can be venture capital. Yes, it is currently the most popular form of startup fund that entrepreneurs like you can go crazy about. But hold on, it’s not so easy. Finding the right venture capital firm, convincing the investors, sharing a percentage of your ownership in the company are some of the biggest considerations associated with venture capital funding.

Make sure you chase only those investors who are interested in your sector, your stage and have deep pockets, quite obviously. Venture capital brings with it a lot of other value added services like guidance and mentorship, contacts, exit facilities, etc. If you are successful in raising venture capital, you won’t have to think about chasing another investor, as in most cases, venture capitalists offer several rounds of financing. Their main objective is to earn huge profit after a certain period, say 3 to 8 years, so they make sure that your business run smoothly until you start generating revenues and make profit.

These are some of the basic things you must be aware of while raising capital for your venture. Simultaneously, keep expanding your network. Get in touch with as many people as you can as you never know when someday someone may forward to introduce you to a potential investor.

For more tips on capital raising, feel free to visit us at Merger Alpha http://mergeralpha.com/

A Few Tips for Raising Capital for Your Start-up

Raising capital for your startup can be quite challenging and at the same time, a learning process too. It’s our nature to learn from our previous mistakes and be a better person for the future challenges. Isn’t it? Capital raising is no exception – you cannot even imagine where and how badly you can ruin your campaign at times. But that’s perfectly OK as it is never too late to learn new things.

If you are struggling to raise capital for your venture, here I am giving you a few small Tips for Raising Capital following which, you can definitely perform better in your next attempt.

, success is also about how efficiently you manage your time. Time is money, so always remember, the time you save is the time you earn and this is critical for every businessman to realize.

Make sure you go through the websites of the investors you are planning to approach. Explore the site properly to see where they are actually interested in investing. Is it the same sector you are in? If not, it’s a good indication that they are not interested in your industry. You can get to know their preference from their portfolio companies.

Many entrepreneurs often end up wasting time chasing the wrong investor. Make sure you are not one of those. For an entrepreneur, time is everything. So make sure you spend it at the right place and for the right investor.

Secondly, getting fund for your startup is always attractive but before you start your campaign, calculate how much you exactly need right now. Set yourself a goal and then determine how much capital you need to attain that. You can always raise more funds for your next goal so it is perfectly fine to go slow. Maintaining this strategy will prevent unwanted dilution and enable you to receive the highest possible value for each stage.

Next is networking. You might have a unique business with high market potential but what often works with a potential investor is the recommendation from a familiar entity, i.e. a common friend. You don’t have to waste your time and energy chasing the investors. Make sure you have a strong network which will automatically take you closer to your potential investor.

an investor is a difficult task, so you have to ensure that everything is right there in front of you such as your detailed business plan, a budget and a compelling story to tell the investors so as to motivate them for the investment.

the market traction is crucial for raising capital.  Unless you can prove a sizeable and scalable market, it is impossible to impress the investor. After all, it is the market traction that will decide your revenue generation. The venture capitalists invest with an aim to earn a profit which is 3 to 5 times their investment. Make sure you can honestly prove that your business can achieve that target effortlessly.

The ultimate and most important is your management team. A highly-organized, efficient, smart and hardworking team is the biggest asset for any organization. VCs give immense value to the management teams and even get ready for a risky investment if the team is efficient and smart.

As an entrepreneur, it is your responsibility to get everything right without wasting time, money and energy. I hope the above tips for raising capital would help you in your startup funding campaign. For more information, feel free to visit http://mergeralpha.com/

Sell or Finance Companies for Increased Sales and Profit

One day you came up with a great business idea in your mind and soon you started your own company to materialize the idea. Today, after 4 to 5 years, you are planning for further expansion of the business so that it can increase your sales and bring you more profits. Usually, at this point, there are mainly two options to choose from– either you sell your business to a bigger company who is interested in it or you start looking for an investor to provide you with the required capital for expansion.

Now whether you want to Sell or Finance Companies is all up to you, but there are certain things that you need to take care of before you approach a buyer or an investor. In both the cases, the biggest requirement is the proper valuation of your company. The moment you start thinking about selling or financing your company, the
first thing you need to do is determine the value of your business.

Evaluating the value of your business will help you price it rightly, neither too high nor too low. Professional investors like the venture capitalists are very particular about the value of the business they are planning to invest in. Although they are not buyers but knowing the value of the company helps them to decide whether it is worth the investment. You can hire a business appraiser to do the valuation for you in case you are not confident enough to do it yourself.

One more thing you have to remember, you have to start your preparation as early as possible, say, if you plan to sell or finance your company, you must have sufficient time to take it to that position where it can attract a buyer or an investor.

You can improve the business in many ways like increase your productivity, improve your business model and your customer base. These are certain things in the absence of which it will be impossible to find a buyer or an investor. The improvement you make will help the buyer in future transactions and ensure that the business continues to run smoothly. The preparation period will also include getting all your documents at the right place like your financial statements, tax returns, contact list, equipment list, etc.

Your next task would be to find a buyer or an investor depending on what you want to do – sell or finance your company.  If you want to sell it, you need to find a buyer. Now, you can either do it yourself or take the help of an agent. If you are selling the business to a family member or a friend, you won’t require any agent. So you don’t need to pay the agent’s commission and save that money. In other cases, you will definitely need an agent to get you buyers and you know they will bring you the best possible deal as it is also in their own interest.
You can create a list of potential buyers and stay in contact with them on a regular basis. Once you find the right buyer, make sure you leave some scope for negotiation although you must not go unreasonably low to please the buyer as it may hurt the company’s credibility in future.

If you are planning to finance your company, you can start looking for a suitable investor. Usually those businesses which have a high market potential but are not bankable, often manage to attract the venture capital firms. If you think your company has that potential, you can definitely consider approaching a venture capital firm for funding. Make sure the firm you approach is interested in the industry you are dealing with and has a list of portfolio companies relevant to your industry. The stage of your company will also be a deciding factor in choosing the right investor as everyone has their choice, like some prefer to invest in the seed-stage while some prefer to invest in the second or third round of financing.

Your biggest requirements will be a unique business idea, a highly-efficient management team, an innovative business model, a proper business value, and of course, a sizable market. Finding a suitable venture capital firm can remarkably boost your business and help it grow and expand enormously.

Selling or financing a company can significantly increase your company’s credibility, sales opportunities and revenue generation. In both cases, you can expect to earn huge profits provided you prepare for it well and make sure everything falls in place till the ultimate paper works.

In case you are currently looking for a potential buyer or an investor for your venture, you can choose to become a member of a strong and intellectual network, a network which will instantly take you close to buyers, sellers, investors and financial advisors in the industry. For further information, feel free to visit http://mergeralpha.com/

How to Attract a Venture Capital Firm to Invest In Your Startup?

Venture capital is a strong solution to the financial troubles that you often face as a first-time entrepreneur. At this stage, when you cannot easily expect your bank loan application to get accepted, it is quite a common practice to turn towards a venture capital firm for start-up funding.

A Venture Capital Firm operates quite differently from a bank or other financial organizations. While banks aim at receiving interest incomes, venture capitalists look for long-term profits, which usually extend from 3 to 8 years. Banks are just creditors while venture capitalists own a share (25% to 50%) of your ownership in the company.

Now, the biggest challenge is to attract a venture capital firm because these professional investors are extremely tough to convince. This is due to the fact that the type of investment they deal with involves huge risks so they take extreme care while exploring your business.

If you are planning to attract one, make sure you have all the requirements fulfilled which the investors eagerly look for. Firstly, you need to have a unique product/service to offer. It should target a sizeable market and should be built on a strong and innovative business model. The investors would see if your product or service can gain traction and generate huge profits; they expect an ROI at least 3 to 5 times their investment in 5 to 8 years. They want the ROI to make up for their failed investments.

Value proposition is a must. You have to prove to the investors how your product is different from your competitors. There needs to be something special about your business to ensure that customers will come to you instead of hitting some other store. You can even demonstrate this with the help of a group of Beta customers who trust your business and are willing to wait till it attains a successful position.

Next is the presence of a smart, committed, honest, decent, hard-working and highly-organized management team in your company. Do you have one? Check this out before you approach a venture capital firm. Your management team is your biggest strength as it represents the actual structure of your company. If you have a strong team, investors will automatically get attracted towards your business.

It is not easy to forecast the future of your startup, neither for you nor for the investors. What you can do is, give them a clear idea about your plans and missions, and let them know where you are aiming to be after 5 years from now and also the limitations, if there is any. This is because the venture capitalists are highly knowledgeable people and, usually, invest in an industry which they know well. So if there is any limitation, they will definitely help you overcome it if they find that yours is actually a highly-potential startup.

Lastly, make sure the investor is interested in the industry you are dealing with. Explore their site to see whether their portfolio companies are from your sector. Finding a suitable venture capital firm can be a boon to your business, so make sure you have all the above mentioned things at proper places.
For more information on venture capital firms, feel free to visit http://mergeralpha.com/

Advantages of Venture Capital Financing

Raising capital for a startup is not an easy task, especially if you are trying to attract venture capital financing since the investors here, also known as venture capitalists, are hard to convince. The amount of risk they take while investing in a startup demands an equal contribution from you too. You have to have to have unique business plan, a smart and organized management team, a unique business model, a scalable market and so many other things to impress a venture capitalist.

However, once you have managed to attract venture capital financing and you move forward with a positive approach and honesty, there is no looking back for sure as there are various ways in which your business can benefit from this startup funding method.
Advantages of Venture Capital Financing
•    You Receive Capital At Various Stages Of Development

Usually, those businesses that have high market potential but are not bankable or cannot raise fund from any other source head for the venture capital route. The reason is, nobody wants to take the risk of investing in a seed-stage startup.

The venture capitalists however love to take the risk provided they find the right kind of business to invest in. They don’t mind investing open-heartedly provided you and your team prove your sincerity and dedication towards your goal. Money is not a factor for these investors but you have to give the assurance of huge profit after a certain period which is usually 3 to 6 years. You will receive capital at various stages of the development of your company which will ensure an uninterrupted expansion.

•    Value-added Services Come Along With Venture Capital

Investment in a seed-stage startup involves risk and to minimize that the venture capitalists will provide you with many value-added services apart from venture capital financing like mentorship, alliance and exit facilities. If you are a first time entrepreneur who has managed to attract venture capital, these services will be extremely helpful and will enable you to make proper progress.

•    Valuable Guidance From The Investors Is Like Icing On The Cake

The venture capitalists have an extensive knowledge of finance which becomes a benefit for the  They will share their reservoir of knowledge with you and soon you will be able to see yourself as a more confident businessman. They will offer valuable guidance and also introduce you to influential people in the industry who can also help you in building sound business strategies.

•    No Repayment of Loans Required

If you have taken loan from a bank, you have to start the repayment process right after that. You’ll have to spend your business profits in repaying your loans. However, with venture capitalists, the headache of loan repayment is not there as these investors look for long-term returns. So you have enough time to focus on you business.
Advantages are many but finding the right investor and convincing him is the real test. Once you successfully overcome that phase, you know you are at safe hands. For more information on venture capital financing, feel free to visit http://mergeralpha.com/