An Overview Of Venture Capital Financing In Singapore

It was certainly the establishment of the TIF (Technopreneurship Investment Fund) that has led to the sudden growth of venture capital financing in Singapore. Although still in its nascent stage, the venture capital industry in Singapore has witnessed significant increase in the number of VC firms over the past few years.

The government of Singapore is actively involved in boosting the country’ startup eco system. For this reason, the government has started many popular initiatives and Block projects that are meant to provide the entrepreneurs with required essentials for setting their business off the ground.

There are many venture capital funds that are operating under the government. Foreign entrepreneurs In Singapore, however, need to have a Singaporean partner or a VC partner in their venture so as to gain capital from the government.

Today, Singapore has emerged as a VC hub. Technology companies from across the world come in search of venture capital financing in Singapore as the country has emerged as one of most business-friendly nations in the world. The favorable government policies, well educated population, and a friendly culture have together made Singapore Asia’s financial and commercial centers.

The government is striving to attract more and more venture capital firms to invest in startups and to make this happen, it has even increased the funding from the government itself. Apart from the capital, the government also provides the startups with other fundamental facilities like office spaces, training, mentoring and equipment.

The private venture capital financing in Singapore is also gradually expanding. The members of Singapore Venture Capital and Private Equity Association are constantly increasing in numbers. Venture capital financing from government, private funds and business angels have become the prime source of capital for the Singapore startups. Not only local, even foreign investors are also coming to Singapore to expand their business.

Singapore is on its way to recreate Silicon Valley in Asia. The National Research Foundation, Singapore, has selected it second batch of venture funds under its Early Stage Venture Fund Scheme (ESVF) to raise a total of S$120million for early stage investments. In this bracket, the government will invest S$10 million each on a one to one basis in 6 funds. The VC firms selected by the government include Jungle Ventures, Golden Gate Ventures, Walden International, New Asia Investments, SBI Ven Capital and Monk’s Hill Ventures.

Under the ESVF Scheme, the government co-invests with selected venture capital funds to invest in the early stage tech startups. The initiative aims at attracting more and more Venture Capital Financing in Singapore and enable the startups to set their businesses off the ground.

The Series A startups usually approach the business angels or certain VC firms who show interest at this stage of developments. The International investors are, however, mostly seen at the later-stage investments as the businesses are already established and the risk involved is significantly less.

The best strategy for the entrepreneurs is to spread their networks as much as possible as this will greatly improve their visibility in the global market and help them attract the investors.

Merger Alpha, based in Singapore, is an intelligent network of buyers, sellers, strategic and financial investors and advisors that aims at fulfilling the needs of the fast growing Asian markets. For those who want to increase their networks so as to get access to their potential investors or buyers can easily become a member of this network.

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

Top Venture Capital Firms For Capital Raising In Singapore

Capital Raising In Singapore

Today, Singapore is one of the leading global financial centers and the most preferred destination for both entrepreneurs and global investors. The country is on its way to become Southeast Asia’s Silicon Valley that will soon create a startup hub for Southeast Asia. As an entrepreneur, if you are planning for capital raising in Singapore, the venture capital industry can provide you with ample opportunities.

Over the years, the number of venture capital firms in Singapore has increased remarkably. Gauging the huge pool of talent in Asia, the investors are now confident about investing in Southeast Asian startups, especially those in Singapore. They typically prefer to invest in the growth stage in sector like Technology, Energy, etc. Here’s a list of some the most prominent venture capital firms in Singapore that have already backed many startups which are, today, earning great revenues.

For capital raising in Singapore, you can select from the below mentioned names but make sure the investors you choose are interested in your sector otherwise it will simply be a wastage of time.

Venture Capital Firms In Singapore

•    JFDI.Asia - Sector : Technology

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

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

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

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

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

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

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

•    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

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

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

Conclusion

Every venture capital firm has its choice of industry and stage of investment. Before you approach any one of them, make sure you go through their portfolio well and gather information about them as much as possible. This will help you save your time and money and also gain the confidence of a potential investor.

Capital raising in Singapore has become a preferred option these days; make sure you come up with an idea that is unique, a market which is scalable and sizable, a strong value proposition for the investors and nevertheless, an organized management team.

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

Major Capital Raising Options In Singapore

Today, Singapore is one of the fastest growing startup markets. Entrepreneurs from various parts of Southeast Asia come with the objective of capital raising in Singapore. No wonder, there is ample scope for the entrepreneurs in Singapore these days, as more number of investors are getting interesting in pouring their funds to back these startups and gain profits.

Broadly, there are three major options for capital raising in Singapore: friends and family, government funding and private equity funding.

Friends and Family

Although it often remains a topic of debate, there are still examples where entrepreneurs have greatly benefited from approaching their friends and family to seek capital for setting their business off the ground. The only red signal is the risk of bitterness that sometimes crops up in relationships in case there is any sort of dishonesty or injustice.

The best thing entrepreneurs can do is not to mix their professional bond with the personal. Also, the financial matters in such partnerships should be dealt with extreme care so as to ensure that there is no scope for any kind of annoyance.

Government Funding

The government of Singapore is also actively working on boosting the startup ecosystem for which it has already started quite a few initiates such as the SPRING, MDA i.Jam and the NRFTIS (national Research Fund Technology Incubation Scheme).

Moreover, the government is striving to push the infrastructural developments for the entrepreneurs and has started many startups support services in the country. The Block projects initiated by the government are meant to fulfill the entrepreneurial requirements and give them ample scope and space to set up their potential businesses.

Private Equity Funding

Private equity funding comes from the private investors like angels, venture capitalists, banks and other organizations. A time comes when funds from the informal sources are no more enough to generate further growth of the company and that’s the point where entrepreneurs need to seek private equity funds.

Over the last few years, the numbers of angel investors and venture capital firms have significantly increased in Singapore. These investors support the high-potential startups with an aim to get a good return on their investments which is usually 25% to 30% for each year’s financing.

Usually, the angel investors in Singapore come forward for the seed-stage investment in startups while the venture capital firms prefer to invest in the second or third rounds, although for a unique business idea, the VC also can get interested at the seed stage financing.

The venture capital firms in Singapore are more interested in technology, service and manufacturing sectors and invest hugely on businesses looking for capital raising in Singapore.

Some of the most popular venture capital firms in Singapore are JFDI.Asia, JAFCO Asia, Innosight Ventures, Gobi Partners, Ardent Capital, Jungle Ventures and others.

Conclusion

Capital raising in Singapore has become a very lucrative strategy today. The favorable government policies and the presence of numerous private investors have altogether created a very sound atmosphere for the startups to flourish. For entrepreneurs planning to raise fund in Singapore, the best step is to increase their networks so as to get closer to more number of people and ultimately find someone who can introduce them to a potential investor.

For further information on capital raising in Singapore, entrepreneurs can also become a part of Merger Alpha – an intelligent network that brings together buyers, sellers, investors and financial advisors under one roof. Feel free to get in touch with us at http://mergeralpha.com/

Points To Remember Before You Sell Or Finance Your Company

A lot of factors come into play whenever we plan to sell or finance companies. The best thing in both the cases is to keep yourself prepared for the ultimate day when you meet a potential buyer or an investor. You should start planning 2 to 5 years in advance before you actually sell your company. Similarly, finding a suitable investor also requires a lot of patience and hard work.

Here are certain things you need to know or do before your sell or finance companies.

Things To Do Before You Sell Your Company

•    Meet The Tax and Estate Planner


Retirement is one of the most common reasons why business owners plan to sell their companies. Anyways, it is critical to get in touch with a tax planner and estate planner and discus your plan with them. Let them review your tax and estate situations. Before you sell, there are many things you can do to mitigate your taxes.


•    Get Your Financials Ready


Getting your financial statements ready is very essential and you should prepare your financials in such a way that it instantly appeals to the buyers. Remember, it Is not you should be satisfied rather your potential buyers. So, tell them something that can get attracted to.


•    Make Your management Team work Independently


Are you the sole “Hero” of your company who does everything single handedly? From accounting to human resourcing to sales? Although it is something that should make you feel proud of yourself but when it comes to impressing the buyer, it will ruin everything. A buyer prefers a business which is self-sustainable – a business that can run smoothly without depending on you. This means, you must fill the various spaces in your management team so that it can work efficiently and independently.


•    Minimize Risk


Any loophole in your business can indicate a risk which a buyer will not really like. Right from the beginning, set yourself a goal that you will have to minimize the risk as much as possible, so that when the time comes to sell the company, you don’t need to struggle much to prove how lucrative the deal is for the buyer.


•    Talk To An Advisor


Every company is different. Just because your friend has closed a great deal doesn’t really mean that you will also go through the same phase. The challenges you will face may be quite different from what your friend has faced. So, it would be wise to talk to an M&A advisor and allow him to review your business. A good long=-term relation with such financial advisors proves highly beneficial in increasing the value of a business.


•    Show Growth Potential


Make a list of all those factors that indicate the huge growth potential of your business. Trust me, a potential buyer would love to see that. Not only will he/she gain confidence in your business but will also give due credibility to it. It is a great asset for your company so make sure you set the right graph of the company right from Day 1.

Things To Know before You Finance Your Company

•    Have A Right Business Plan


If you are planning to fund your newly-started business, your biggest requirement would be to have a unique business idea that shows high growth potential. Without a great business plan, it would be impossible to attract an investor. Venture capitalists are used to taking high risk investments but only for those businesses that involve a unique idea with a scalable and sizable market.


•    Know Your Finances Well


Investors find confidence when they see that the entrepreneur is fully aware of his/her financial situations and requirements. You must know how much you need and how you are planning to utilize the fund they have invested. It’s better not to raise too much capital at the first round. Venture capitalists offer several rounds of financing, so no need to ask for a huge fund for the initial operational cost.

However, also make sure that you are not too modest to create doubts in the mind of the investors. Simply ask what you think would be sufficient for your initial round. Your confidence is very important to help the investor also have confidence in your company.

•    Put Your Personal Savings To Use

Financing companies becomes much easier when you show the investors a significant contribution from your side as well. If you have enough personal savings, try to take charge of at least 25% of the financing, or if that is unaffordable then 10% at least. This will make the investors realize your commitment to the venture and encourage them to come forward without much apprehension.

Conclusion

Either you sell or finance your companies, at the end of the day, the sole objective is to make huge profits. Make sure you sell your company when its performance is at its peak. That is the point where a business looks most attractive. Isn’t it?

For more information on selling or financing your companies, feel free to visit http://mergeralpha.com/

Merger Alpha is an intelligent platform that brings together buyers, sellers, investors and financial advisors under one roof so as to redefine how entrepreneurs and business owners Sell or Finance Companies.

Feel free share your thoughts with us in the comment box.

Tips For Capital Raising For Your Newly-Established Business

I know how exciting the moment is when you suddenly come up with a new business idea and decide to turn that idea into reality. Very rarely do we realize that the path is going to be really challenging, especially when you have to raise fund for your startup. Often entrepreneurs either get bored or lose hope and motivation after several rounds of failure. Make sure you are not one of them.

It’s praiseworthy that you have decided to establish your own business. It’s OK if you fail at the first few rounds; no need to lose hope and trust me, this is one of the most important tips for Capital Raising that I would like to give you.

Moving to the other tips for capital raising, you have to take care of certain things that will strongly determine your success in fund raising. Firstly, you should know your ultimate goal. What you want, how much you want, how will utilize the fund, what you are trying to achieve in the near future and such other questions.

Often entrepreneurs are concerned about their ownership in the company. Now if you are planning a business which is aimed at “for the people” and “by the people”, then you may not remain the sole owner of the company. On the other hand, if you want a simple investor-backed company where you are the sole owner, then the situation is different. So have to know what you want at the end of the day.

Your next aim should be to approach your customers before you approach the investors. Customer validation is very essential as it indicates how efficiently your business will run. Now, it doesn’t really make sense to include your friends and family in it as their reviews and comments will be to some extent biased since they love and care for you so won’t be very harsh.

To know the exact reality, you have to catch your potential customers in the market and show them a prototype. You have to do this with as little resources as possible. Try to meet at least 20 -40 potential customers and there is no better validation than getting a Letter of Intent signed by the customers themselves. If that’s not possible then, at least, try to get their feedback or comments on your product or service. If they come up with any advice, take it graciously as it will help you in improving your business.

Having strong customer validation shows that you can easily survive on least resources and this is what we call bootstrapping. If you can show your potential investors how well you can bootstrap, they will gain confidence in your business and come forward for investment.

The next important thing is to be able to tell a compelling story. It’s a must when you are sitting in front of a potential investor with your first pitch. You have to show the investors how your business will scale with time. This should arouse curiosity in their minds and increase their urge to know more about your business plan. This is not an easy job I must say. The investors are often in a state of rush and it is quite challenging to grab their attention. Unless your business sounds interesting, they won’t bother to enquire much about it.

Make a list of your potential investors and approach them one by one. If you start with, say, 50 investors, a time will come when there will be only 3 or 4 investors who will be ready to offer you term-sheets. So make sure you start with as many investors as possible, so that there is enough choice to make on both sides. Also, try to show some urgency. Investors often get motivated to see other investors interested in a business. This will help you grab their attention quickly.

Before you jump into fund raising for your startup, make sure you have a unique business plan, an organized management team, a scalable market and a strong value proposition to present in front of the investors. Simply keep in mind the above aspects and you will go a long way in your capital raising campaign. For more tips for capital raising, feel free to visit http://mergeralpha.com/

Best Time To Sell or Finance Companies

The plan to sell the business should be made very early, nearly 4 to 5 years in advance. This helps businesses to make sufficient preparations like building proper strategies, reducing the liabilities and increasing the key selling factors. This attitude not only makes the business more attractive to buyers but also helps in funding the company.

For those who are trying to sell or finance companies, here are some of the key points that they must remember so as to avoid the last minute rush and nervousness. Business owners are often so engrossed in the company’s day-to-day operations that they hardly tend to focus on selling or financing the companies or, maybe, on the best time to Sell or Finance Companies.

The best time to sell the business is when it is at its peak. It means when the business is performing excellently; when there are more number of key employees who are contributing immensely to the growth and development of the company. At this stage, the companies look more attractive to the other bigger companies or individuals.

One should always aim to increase the value of the company before selling it or raising fund for its further development. A few things that can increase the market value of a business are standardization of the company procedures, reducing liabilities and resolving litigations, maintaining the equipment to ensure smooth operations, having an efficient management team who can work independently or even with a new owner, eliminating non-performing employees, reducing the unwanted inventory, investigating the transferability of leases and sales and supplier contracts, etc.

There are many other things that the business owners might want to get while selling the company. Some prefer to get tax benefits, some are simply concerned about funding their retirement, some hope that their successors remain a part of the company even after it is sold, while some hope that the new owner will run the company as smoothly as before and continue to please the customers with the same standard of service.

So basically, when the owner of a business feels that he has achieved a lot and wants to retire, when his children are ready to succeed him, when his business is earning good amount of revenues or he has got a highly profitable deal, that’s the time he should think of selling his business.

On the other hand, the need for funding the business may arise at various levels of development of the company. The best time to finance the company again depends on certain circumstances such as debt position, cash position, working capital and the business model. Although there is no time bar for a highly potential and unique business, but before investing every business owner must make sure that he has properly evaluated the value of his business and he knows how much to raise so that he can meet the interest payment easily.

In any case, before approaching an investor, business owners must know how much to raise and how strong is their earlier track-records. If they have a proven track record, it becomes much easier to convince the investors and receive the much-needed fund for the business.

Those who are planning to sell or finance companies can feel free to visit http://mergeralpha.com/
Merger Alpha is an intelligent network that brings buyers, sellers, investors and financial advisors all under a single roof so that everyone can easily fulfill their requirement of buying, selling or financing their companies and earn more profit.
Good luck!

Some Golden Tips For Raising Venture Capital

Raising venture capital is not a cakewalk. Ask an entrepreneur who has raised capital and he/she will tell you how the whole fund raising campaign is filled with challenges.  Convincing a venture capitalist is not easy, so here are some valuable Tips for Raising Capital. Basically, it is all about the right approach and attitude that will ultimately prove that your business is worth the fund that the VCs are looking to invest.

5 Tips For Raising Capital Decide What Exactly You Want

It means you have to understand your business first. Unless you know your requirements well, you will fumble while articulating your speech in front of the investors. And first impression is the last impression, so trust me, this might ruin everything. You cannot afford such blunders at this crucial stage so make sure you know what you want.

The most important deciding factor is the choice of the nature of business you are planning to run.  Do you want a high-impact business which is sizable and scalable and is aimed to make people rich such as social media sites or the giant tech companies or you just want a simple venture-backed business where you can be your own boss. Know your preference before your approach the investors.

Create And Nurture Your Own Management Team

Your team is your most valuable asset and you have to provide it with the best possible facilities so that it can emerge as a strong, intelligent, smart and engaging team in front of the investors. Investors are always more inclined towards an efficient and smart working team as it ensures that the business will be able to create its own space in this highly competitive market. You have to provide your team with everything it requires to emerge as a topper and the most important is a mentor/ an advisor.

It’s A Game And You Need To Win

Often, the whole journey of capital raising and facing failures makes the entrepreneurs feel hopeless and bored. Make sure you don’t do the same thing with yourself. Treat the whole thing as a game where you are left in the field to face challenges and expected to emerge as a winner at the end. The basic idea is to keep you motivated all the time. Failure is not the end of everything. If you have failed, do not lose hope. Instead, work on your deal and see how you can make it better and more appealing to the investors.

Know the Market And The Lingo

Knowing your market is a must. You must be aware of the market trends and competition.  Is the product or service you are offering in demand? Is it the best in the market? If yes, how? Who are your competitors? What strategy they are following? These are some of the vital points that will help you build a strong business strategy before you enter the market.

Also make sure you are aware of the various terminologies and concepts in venture capital investment such as a preferred stock or realistic business valuations, etc. Keeping in-pace with the trend helps an entrepreneur to easily appeal to the investors. You must also have a fair knowledge of finance and marketing as VCs usually give more preference to those entrepreneurs who have a clear idea of these two subjects.

Do A Research Before You Approach An Investor

There are certain things that you have to take care of while approaching a VC. Entrepreneurs often do the mistakes of calling the wrong investors, cold calling the investors or having the wrong attitude. Your way of approach is as critical as having a unique business idea. Never ever make a cold call to any investor; this is really disappointing. Simply sending a mail with a description of your business plan is of no use as it is quite an ineffective strategy compared to preparing yourself, making an appointment and then talking to the investors personally, face to face.

Recommendations works best so you must spread your network more to have at least one person in your circle who can recommend your name to a potential investor. Approaching the wrong investor is a total wastage of time, so that you must avoid that at any cost. Go through their websites carefully to know about their industry preference and stage preference before you approach them for fund raising,

Conclusion

These are some of the most crucial things that you have to take care of while raising venture capital. The first requirement, no doubt, is a unique business plan based on which you will plan to raise venture capital and then the above steps will come in to play to make sure that you successfully raise the capital for your venture. For more information or tips for capital raising, feel free to visit http://mergeralpha.com/

Why Should You Invest In Gold Mining Stocks?

The best piece of advice I can ever give you is to diversify your portfolio by investing in commodities which may include a variety of raw materials like gold, silver, copper, any other metal or maybe even a crop. Among all these commodities, gold has so far proved itself as the safest haven for investors, especially during any economic crisis. So, if you are planning to invest in gold, I do appreciate your decision.

If you are planning to invest in gold, it means you are looking forward to a long-term investment which is wise. Now, there are various ways you can invest in gold. You can choose to buy physical gold no matter what shape and size, coins or bars, just anything.

To make it large, you can even buy a gold mining company. This means, you are the owner and therefore, responsible for the success or failure of your company as you are directly involved in the management team. However, that might be little stressful. Isn’t it?

Worry not, as there is another golden investment strategy.  You can buy a share of ownership in a gold mining company. By buying a stock, you simply own a percentage share of the overall profit made by the company and don’t need to bear any headache regarding its management.  So basically, you simply invest and then wait for the right time to reap the benefits and there is no additional tension.

The third option has become quite popular and is increasingly motivating the investors to mine gold and ensure a good return in future as this precious metal witnesses rapid capital appreciation and is less volatile compared to other investment options even when the market is tensed.

With more and more investors turning to mine gold, the entrepreneurs dealing with the business are getting more scope to start and expand their gold mining ventures. You can also invest in a newly started mining venture to provide it with the initial operational costs. Not a bad strategy of course!

However, any investment requires a lot of research and networking. Do not forget to keep a close watch on the market and simultaneously keep expanding your network so that you can easily reach out to that suitable investment options you have been eagerly waiting for.

For better assistance, you can also consider becoming a part of an intelligent network such as Merger Alpha http://mergeralpha.com/ that brings together buyers, seller, investors and financial advisors under a single roof so that each section can fulfill its requirement and earn profits.

Good Luck!

And, feel free to share your thoughts with us in the comment box.