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.