 |
| Capital Raising in Singapore |
Capital raising in
Singapore or any other part of southeast Asia is very different from that
in the Silicon valley or rather, we can say it is comparatively much harder in
Asia. The reason is the lesser number of venture capital firms and other
institutional investors across Asia which makes it quite difficult for
entrepreneurs to find a suitable investor for their startup.
However, when it comes to capital raising Singapore in particular, the entrepreneurs have many
different options to choose from. Money is there is the market but
entrepreneurs need to identify the capital raising option that suits their
business perfectly. Once they choose the right path with a unique business plan
in mind, finding the right investor is not so tough.
Many entrepreneurs have long tried to chase the VCs in the
Silicon Valley but, unfortunately, those investors prefer to invest in ventures
that are easily accessible from their offices. Naturally, many have ended up
wasting their time in this endeavor and now, have turned their heads towards
the local investors in Singapore or the international VC firms that have a base
in the city-state.
The Singapore government is currently very active regarding
attracting investors in the city-state to boost the entrepreneurial ecosystem.
It has launched many initiatives such
as cash grants, tax incentives, debt financing and government-aided equity
financing schemes to attract venture capitalist from around the world.
Today, there are numerous small and big venture capital firms
in Singapore that are eagerly looking for lucrative business ideas to invest
in. Some of the top firms include Adam Street Partners, Digital Media Partner, Extream
Ventures, JFDI.Asia, JAFCO Group, Singtel Innov8, Intel Capital, Gobi Partners,
TNF Ventures, GGV Capital and many others.
Entrepreneurs only need to fulfill all the criteria and arrive
in front of the right investor at the right time. For capital raising in Singapore,
they can have access to many government-backed or private equity financing options
like Angel Investors, venture capital funding and private funds.
Angel investors
are typically, wealthy individuals who prefer to invest in high-risk start-ups
usually at the early stage. They invest the capital in exchange for a small equity
share in the company and their expected ROI is comparatively lesser than that
of VCs. They tend to promote the high-potential startups and take them to a
position where they can start earning huge revenues and also provide a valuable
products/service to the society. Angel investors can either operate
individually or as a part of an angel network.
Venture capitalists,
on the other hand, are professional investors who typically invest in high growth
startups just like the angels but with the difference that the amount of capital
they usuallu invest is comparatively much higher than any other investor. Apart
from offering capital, these investors also provide the investee company with
guidance and mentorship. They also share their contacts with the company so as
enable them to expand their networks and learn new business strategies from the
management and financial experts.
Then there are the private
funds that include banks and financial institutions. Unlike the angels
and VCs, these investors do not get involved in the investee company’s management
affairs. All they do is, invest and then wait for a good ROI. They usually
invest in the ventures that are already established as they do not prefer to
take the risk of investing at an early stage.
Now, depending upon their type of business, industry sector,
and stage of development, entrepreneurs can choose a suitable investor for
capital raising in Singapore. The basic things they need to have before
approaching the investors are – a unique business idea, a sizeable and scalable
market, a smart and efficient management team, a great business model, a sound
value proposition and the right attitude.
If you are also one of the entrepreneurs looking for a
suitable investor in the city-state, feel free to visit Merger Alpha http://www.mergeralpha.com/ for more
information.
Also, do share your thoughts and experiences regarding capital raising in Singapore in the
comment box given below.
Good Luck!
No comments:
Post a Comment