A Few Tips For Startups Planning For Venture Capital Raising In Singapore

Capital Raising in Singapore

Of late, capital raising in Singapore has become the primary target of most of the Asian startups. With the government facilitating the entry of more and more VCs in the city-state, the entrepreneurial ecosystem is getting delighted with the increased scope of venture capital raising in Singapore. However, in our excitement, we often end up making some minor or sometimes even major mistakes that ruins all the effort we put into fundraising. 

Here are a few tips that you should remember whenever you are planning to raise venture capital for your startup. 

Tips For Capital Raising In Singapore 

Chase The Investor, Not The Firm

The most important rule while seeking venture capital is to chase the investor and not the firm. Rather than chasing the VC firm as a whole, it is advisable to target specific investors who seem to be interested in your industry. The best way is to interact with other startup CEOs who have recently closed their fund raising campaign as they can best give you an idea of the actual state of the investors. Which investor is currently active, who is broke or who is showing interest in your industry can be known from the new CEOs. Sharing such information between entrepreneurs is quite healthy as it not only increases your contacts but also introduces you to people who can introduce you to the right venture capitalists. 

Try To Grab The VC’s Attention

Venture capital industry in Singapore is quite new, so the VCs are also equally interested in knowing about the new startups in the market. At this point of time, if you can cultivate a genuine and thoughtful communication with a suitable investor, it is quite possible that your effort will pay you back.

Once you have enlisted a few names of potential investors, start following them on their social networks like Facebook, Twitter and others. Become a regular reader of their latest posts and leave a thoughtful comment whenever possible. This is definitely not a one day gesture but you should do this on a regular basis. However, make sure that you do not end up doing anything in excess. Your comments or praise should be realistic enough to help you grab the type of attention you are looking for.

Get A Genuine Referral

When it comes to seeking referrals to the VC, you will find many professional service providers. The strategy, however, is not as effective as getting a referral from a member who is either very familiar to the VC or has no professional motive, i.e. one who has nothing to gain from your achievement.

Usually, the CEOs of the VC’s portfolio companies work as the best referrals but for this you might need the VC to introduce you to their portfolio companies. And in case, it doesn’t work, you can directly approach their portfolio start-ups and discuss your plan of seeking venture capital. If you can form a sound relationship with the executive of the portfolio company, they will happily introduce you to the VC with best of their efforts.

Convince The VC For Investment

The first meeting with the VC is more of a make or break situation. Your attitude, your words, your team, everything will combine together to set the mood of the VC for investment. Never try to ask about the money in your first meeting. Let the VC know your business plan, for which you have to prepare a convincing pitch to be read in front of the VC. If you really have a unique business plan, it will never go unnoticed. Start with discussing your business with the VC and they will automatically come to a conclusion whether or not to invest in your business. It is very important to target the right investor right from the beginning. Often things end up abruptly due to lack of relevance of business to the investment focus of the VC. Something that can give significant credibility to your business is your personal savings as the first source of funding. If you can contribute 10-25% from your personal savings, the VCs will gain confident more easily. However, if you are not are in a position to self-finance, you can directly talk about capital raising to the investor.

Conclusion

There are many networks in Singapore that connect entrepreneurs to suitable venture capital firms in Singapore or angel investors. Such networks drastically reduce the time required to find the right VC and also serve as a knowledge platform for startups owing to the presence of financial and management advisors of the startup ecosystem of Southeast Asia. Some of the popular networks include Merger Alpha, BANSEA, SVCA and others. Try to become a part of such a network and save your valuable time and money while venture capital raising in Singapore. For more information on capital raising in Singapore, feel free to visit http://mergeralpha.com/.

Venture Capital Financing In Singapore

Capital Raising in Singapore

                Capital Raising in Singapore

The Singaporean government is actively involved in bringing more and more investors to the island so as to give a boost to the startup ecosystem. The formation on the TIF has significantly enhanced this process and today, there are numerous venture capitalists in the city-state searching for suitable tech startups with innovative ideas. The Block projects launched by the government aim at fulfilling all the basic necessities of the startups like providing land, tools and equipment, man power, capital and many other facilities. Apart from this, the low personal and corporate tax rates, business-friendly government policies, highly educated people, and most importantly, Singapore being a corporate hub of Southeast Asia together make it a lucrative destination for the investors.

Today, there are ample options for startups looking for venture capital financing in Singapore. Though the process of finding a VC is not that easy but entrepreneurs can still manage to attract the investor through a highly potential business plan with a sizeable market and a strong value proposition.
Some of the renowned venture capital firms in Singapore include JFDI.Asia, Ardent Capital, Jungle Ventures, TNF Ventures, Golden Gate Ventures, Carlyle Group, Intel Capital, JAFCO Asia, Singtel Innov8, Gobi partners, Flag capital, Extream Ventures, Stream Global and others.
The venture capitalists differ in the choice of industry and stage of investments in companies. Typically, venture capital financing in Singapore is seen at the growth stage though many investors pour money even at the seed stage if it is a highly potential and unique idea.

The government of Singapore is aiming to bring in more global investors so as to provide the Southeast Asian startups with ample scope to set their business off the ground. In the near future, venture capital financing in Singapore is expected to become a huge industry which is, currently, at a nascent stage. However, things are still good enough and entrepreneur can definitely manage to find an investor through effective networking.
Merger Alpha is an effective network targeting the Southeast Asian markets. It provides a common platform for buyer, sellers, investors and financial advisors of the startup ecosystem thus making it easier for everyone to get in touch with each other. If you too want to be a part of Merger Alpha or you want to know more about venture capital financing in Singapore, feel free to visit http://mergeralpha.com/.

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/

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/

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/

Venture Capital Raising In Singapore

Over the year, Singapore has emerged as a favourite destination for the Southeast Asian entrepreneurs planning to raise capital for their newly started business or expand the existing ones. Although there are many other nations like Thailand, Hong Kong, Japan, Malaysia, South korea, India and China, Singapore has apparently achieved the most mature stage.

Today, there are lots of options for capital raising in Singapore, especially the venture capitalists have started showing significant increase in the numbers. Currently, there are over 100 venture capitalists in Singapore.

The industry is although quite new and small compared to those of US and UK, the venture capital firms are however increasingly getting attracted to the destination due to the tax incentives and other favourable government policies. High net-worth Individuals, corporate houses, government boards and many wealthy people are increasingly coming up to open venture capital funds in the country.

Some of the most active venture capital companies of Southeast Asia are located in Singapore. When it comes to capital raising in Singapore, the venture capital industry offers huge scope to the entrepreneurs. Apart from acting as financers, the investors also serve as mentors for the start-ups.

The start-ups are also constantly in search of such investors who can offer them with ample knowledge, guidance and contacts apart from just the capital. The management skills they acquire from the venture capitalists help them hugely in successfully expanding their businesses.

Typically, the venture capitalists in Singapore prefer to invest in the late-stage expansions. However, many also look for high-potential, early stage start-ups. This preference often makes capital raising in Singapore a bit challenging for the entrepreneurs which is however not an impossible thing to do.

There are various types of venture capital firms like, some who prefer to invest in the established businesses, some who prefer those which have already started earning profits while some who prefer to invest in the early-stage start-ups.

Two more ways in which the venture capital companies in Singapore can be categorised are: the independent limited partnership firms and the corporate backed firms. The most prominent industries in Singapore that are able to attract the venture capital firms are manufacturing and services industry, and the technology sector which usually include biotechnology, software, genetic engineering, etc. Due to the constant innovations and advancements in the IT sector, attracting venture capital has become much easier for businesses related to the industry.

Venture capital raising in Singapore will become easier once the entrepreneurs fulfil all the requirements. The things that the investors primarily look for are: a unique business idea with great market potential, a highly-organized management team with an excellent knowledge of the current market and competition, a sizable and scalable market, an innovative business model and market benefits of the product/service.

On an average, such investments last up to 2 to 6 years after which the investors expect to see a 25-30 percent return on their investments for each year. Such a possibility of profit earning is only possible with the presence of an extra-ordinarily talented management team where each and every member is aware of his/her responsibilities and is highly committed to the customers and investors both.

Some of the most popular venture capital firms in Singapore are JFDl. Asia, Golden Gate Ventures, TNF Ventures, and Ventures Capital etc.

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

How to Attract Venture Capital Financing For Your Newly Started Business

Venture Capital Fund

While there are so many other sources of capital, why do entrepreneurs often look for venture capital financing? Well, that is primarily because of the huge investments made by the investors, also called the venture capitalists, and needless to say, the additional services like guidance, knowledge sharing, contacts sharing, etc. that they receive.

Now, the biggest challenge that businesses often face is attracting venture capital financing. The first thing entrepreneurs need to have is a unique business plan. The uniqueness of the product or service will ensure that there will be great demand for it in the market and it should provide customers with a unique solution that they have long been looking for.

The thirst for this uniqueness often drives the investors towards the technology industry as it witnesses frequent innovations. That however doesn’t indicate that other industries have to suffer but it is again all about how unique the business plan is.

Secondly, they need to develop a value proposition to the investors. This is really important while attracting venture capital financing as the investors are very knowledgeable in the startup industry and expect the entrepreneur to know why and how his/her product/service is different from those of other competitors in the market. Why would customers choose to buy that particular product rather than going to some other vendor? For entrepreneurs, these things have to be very clear right from the beginning.

Further, a highly efficient management team is a must for any startup. A management team full of knowledge, expertise and commitment is like a diamond in the eyes of investors. Apart from the entrepreneur himself, it is also the responsibility of the team to help the business attract venture capital financing.

Targeting a sizeable and scalable market is also equally important. There is no denying that there is huge competition in the startup industry and only a few of the businesses are able to receive funding either from the venture capitalists or the angel investors. In such a scenario, without strong market traction, it is impossible for a business to gain the attention of these professional and choosy investors. The venture capitalists are masters in the matters of finance so they can easily evaluate the value of a business just by going through these factors.

The next vital requirement is a strong network. Just like social media networking has become a rage in the current world, it is important for the entrepreneurs to also become a part of a strong network through which they can reach their suitable investors.

Another important aspect of venture capital financing is, the investors usually prefer to invest in situations where either they are familiar with the entrepreneur or a person from their circle recommends a name (of an entrepreneur). Recommendation mostly works so it is essential for the entrepreneurs to increase their network and get their businesses introduced to more and more influential people.

These are some of the ways in which startups can convince a suitable investor. Apart from this, positive attitude, honesty, commitment and good behavior are also important to ensure that the entrepreneurs perform their best in front of the investors.

For more information on venture capital financing, visit http://mergeralpha.com/.

A List of Some of the Top Venture Capital Firms In Singapore Venture Capital Firms in Singapore

Over the last few years, venture capital raising in Singapore has gained great momentum with the emergence of some of the top firms creating new opportunities for the entrepreneurs. If you have a newly-started business, you are well-aware of the importance of capital in its growth and expansion and any clue about a potential investor is always welcome news for you. Among all the Southeast Asian nations, Singapore has currently the most active venture capital industry. In case you are currently planning for capital raising in Singapore, here are some of the top venture capital firms you must know:

• 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.

• In sight 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.

• Sing tell 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, Clean tech, Semiconductors, Emerging technologies, etc.

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

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

• JAFCO Asia – Sectors: Technology

• Extreme 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.

There is nothing like finding and successfully convincing the right venture capitalists. With a unique business idea, a highly-skilled and organized management team, a scalable market, a sound knowledge of finance and marketing and an innovative business model, you can definitely be one of those few lucky entrepreneurs who have successfully taken their business to new heights with venture capital.

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

Product Offering of Merger Alpha

Capital & Network – The Biggest Requirements for a Startup

OK, I do realize the excitement of starting a new business and also the phase we all go through in figuring out the most suitable source of startup funding. But unless you have a strong network, finding a suitable funding source will be next to impossible.

If you have a huge amount of personal savings, it might help you in the initial rounds of financing but a stage will come when you will need a professional investor to indulge into your business to help it grow and expand.

So, how about having a platform that can help you take a leap and get hold of a suitable investor for your startup?

Visit the Merger Alpha team - a company based in Singapore targeting the fast-growing Asian market. Merger Alpha is dedicatedly working towards encouraging entrepreneurship in Asia and to fulfill this objective, the company offers an innovative & international platform to bring together entrepreneurs, investors and financial advisors.

How Merger Alpha Can Help Your Business?

To know how Merger Alpha can help you turn your newly-started business into a well-established one, you have to first go through the product offerings of the company. Here’s a list of the products/services offered by Merger Alpha.

·         Develop Your Business
you will get access to a common platform which will bring you close to potential investors and buyers. Naturally, your chances of finding a suitable suitor increases greatly. You don’t have to rove here and there and spend your valuable time and energy in search of an investor or a partner or a buyer. Basically, it’s a one-stop destination meant to fulfill the basic and the most important needs of startups.

·         Raise Fund
You know how tough it is to raise fund for a startup. Convincing the investors, especially the venture capitalists, is as tough as selling fridge to an Eskimo.

The team at Merger Alpha tries to make things easier for the entrepreneurs like you.  They strive to introduce you to the most suitable investors around the world, i.e. those investors who are interested in the industry you are dealing with.

Until you get in touch with the right investor, you will simple keep scratching your head thinking why you are not able to raise fund for your startup. By being a member of an intelligent network like Merger Alpha, you will easily get one step closer to your goal.

·         Joint ventures and Partnerships
You will easily find a suitable partnership company and increase your revenue and profitability. This will ensure that your start-cost is much lower and you have enough capital to grow your business.  You can partner with local or cross border companies who are also in search of companies like yours.

Through the network, it will be much easier for you to expand your network, your market, products and customer base. In short, your revenues will increase very soon.

·         Stealth Campaigns
While you are looking for a suitable investor for your startup, you can explore various companies, get to know the investors, their choices and portfolios companies, and also do the valuation based on that which will be kept purely confidential.

You will be provided a dashboard through which you can manage your interactions with other members of the network in a completely secure environment.

Conclusion

For entrepreneurs, there is nothing like getting quick access to a suitable investor and see their business reach new heights. If you have a newly-started business and you are still struggling to receive startup funding which is enough to push your company, you can take a chance by being a member of this intelligent network called Merger alpha.

For further information on the network, feel free to visit http://mergeralpha.com/