Showing posts with label tips for raising capital. Show all posts
Showing posts with label tips for raising capital. Show all posts

Saturday, 14 February 2015

Reasons Why a Venture Capital Firm in Singapore May Not Invest in Your Startup


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.

Tuesday, 10 February 2015

4 Vital Points To Remember For Capital Raising In Singapore


Capital Raising in Singapore

Capital raising in Singapore has become much easier with the entry of large number of venture capital firms from within the city-state and abroad. There are both private and government-backed venture capital firms in Singapore that are together boosting the startup industry with capital and necessary management and financial guidance. If you are currently looking for suitable investors for capital raising in Singapore, below are certain things that you need to be aware of.

Points You Should Always Remember While Capital Raising In Singapore
·         It Is The Investor Who Is Important, Not The Firm

As a first-time entrepreneur, you might not figure out the difference between chasing a firm and chasing an investor; there’s a fine line between the two but the impact is often significant. Each person is different; the person may have his/her own way of thinking and liking, so you never when and how a particular investor gets attracted to your business plan.  Explore your social network through which you might be able to get the person who can introduce you to a suitable investor. Once you find an investor who is interested in your sector, start chasing him/her, but smartly of course.

·         Follow Your Potential Investors Everywhere

It is just where we ended in point number 1, i.e. following the investor. Follow in such a way that you gradually attract them towards you without bothering them much. Remember, the venture capital industry in Singapore is quite new, so the new VC firms are also deliberately looking for investment opportunities. Try to make yourself noticeable at all cost. This is possible if you start following them on social media, follow their blogs and leave your comments and unique ideas whenever and wherever possible. In simple terms, try to be unique while chasing your investors.

·         Utilize Your Personal Savings If Possible

Using your personal savings as your first source of capital can benefit you immensely. If you have sufficient savings and you are confident about the business idea, try to contribute at least 25 to 50 percent from your side. If that’s beyond affordability, try at least 10 percent. This will build confidence in your investors. Venture capital raising in Singapore is still in its nascent stage so try to make the investors feel secure about the investment, or else, there are many who can snatch the opportunity from you.

·         First Impression Is The Last Impression

The first meeting with the investors is, often, a make or break situation. Try to bring the best out of you and make your pitch extremely exciting and appealing. The words you speak should reveal your confidence in the business idea you have come up with. The more confident you are; the easier it will be for them to gain confidence in the idea. But, maintain the distance between confidence and over-confidence as the later has a great potential to ruin your capital raising campaign. Be careful!

Conclusion
Today, there are ample options for capital raising in Singapore such as government funds, angel investors, venture capital firms and private equity funds. All you need is a unique business plan, a sizable market, a sound value proposition, a great management team and then, the ability to identify the right investor.
You can also become a part of an intelligent network like Merger Alpha that can offer you the much-needed platform to showcase you business ideas and get easy access to your potential buyers, sellers and financial advisers. If you find the idea appealing enough, feel free to get in touch with us at Merger Alpha http://www.mergeralpha.com/.
You can also leave your queries in the comment box given below.
Good Luck!

Tuesday, 13 January 2015

Fluoropolymer Resin Market In India – A Brief Overview



Fluoropolymer Resin Market In India
For those who are not so familiar with the term, “Fluoropolymers” are polymers materials that contain fluorine atoms in their chemical structures. The substances are characterized by a high resistance to solvents, acids and bases. The American industrial research chemist Roy.J.Plunkett in 1938 accidentally discovered these substances while he was trying to make a new CFC refrigerant; that’s when he observed that a cylinder filled with tetrafluoroethylene had stopped flowing and what came out was not gas but a powder which was nothing but the fluoropolymer. Since then the substance has found use in numerous products ranging from semiconductors and automotive fuel transport to even in NASA’s space shuttle.

Today the flouropolymer resin market in India is a huge industry that influences the lives of millions of people in various ways. Here’s a brief overview of the industry:
-          The biggest demand driver of Polytetrafluoro-ethylene (an industrial fluoropolymer) in India is the chemical processing industry unlike China where the demand drivers are wires and cables, non-stick cookware and industrial lined products.
-          These are used in lining of pipes, vessels, wire and cable industry, automotive, electrical switchgears, electronics, valves and other flow products.
-          PTFE - polytetrafluoro-ethylene is the most commonly used flouropolymer.
-          Industrial and consumer applications like non-stick cookware coating is very common in India.
-          Non-stick cookware manufacturers buy this product in large amounts.
-          The demand for the substance is primarily domestic in India.

-          The fluoropolymer resin market in India annually produces 2,500 tons of polymers with a growth of 6 to 7 percent p.a.
-          Dupont is, currently, leading the fluoropolymer resin market in India.
-          The polymers are also imported from China, GFL (Gujarat Fluorochemicals Limited) and other leaders.
-          The price for PTFE varies depending on global price trends and demand supply ratio with respect to China.
-          GFL (Gujarat Fluorochemicals Limited) in India has earned a significant share in the Indian market.
-          Current trends indicate that the Indian automotive industry and the pharma industry are emerging as the biggest demand drivers for the fluoropolymer resin in India.
-          Though filled with risks and policy restrictions, oil and gas exploration can also drive demand for PTFE in India.

-          There is also growth potential for fluoropolymers like PFA and FEP etc owing to the rapid growth in the automobile industry.   Pharmaceutical industry is the biggest consumer of these products.
-          Although the fluoropolymer market depends on the global market scenario, there is still great potential in the industry with value added applications.

Conclusion
India being one of the world’s largest economies is striving to ensure for its citizen safe and nutritious food, uninterrupted energy and state-of-the-art infrastructure to protect both people and the environment. This increasing need to make like better for the people is playing a significant role in driving the demand for the fluoropolymer resin market in India. Today, this global business has taken place as a billion dollar industry in India and is catering to wide varieties of sectors ranging from industries to household items. Consumers rely on the products made from fluoropolymers due to their unique benefits.
Currently, investors from around the world are frequently eyeing the market to gain huge profits. For more information on the fluoropolymer resin market in India, feel free to visit Merger Alpha at http://mergeralpha.com/.

Tuesday, 6 January 2015

Interesting Tools to raise Capital for Your New Business


Merger Alpha

Tools You Need to raise Capital for Your Startup
Are you planning to raise capital for your newly-started business? Of the various tools to raise capital, below are the most important ones that you should always remember. 

·         Your Business Plan And The Market
A unique business plan and a sizable and scalable market are the most important tools to raise capital. In the absence of these two, chasing an investor would be sheer wastage of time. Make sure you have a brilliant business idea that can set a new trend in the market and instantly grab customers’ attention; that should be something the customers cannot do without. Such ideas are great head-turners for the professional investors, especially the venture capitalists.

·         Business Valuation
To ensure that you value your business correctly in front of the investors, it is very important to determine the value of your business at the very beginning. Business valuation will help you identify the loopholes in your business and rectify them as early as possible so that you can boost the value of your business further. Any professional investor would like to see this aspect while exploring your venture so make sure all your documents are at the right place.

·         The Right Investor
The right investor is also one of the most significant tools to raisecapital as it is only source that can provide you with the capital for your startup. Until you find the right investor, you won’t be able to convince them to bring out the dollar to the table. Now who is the right investor? It is someone who is interested in your industry sector. If yours is a tech startup, try to chase only those investors who are looking to invest in the same sector. To save time, it is best to go through their websites and then approach the investors.

·         Your First Pitch
Your first pitch can be a game changer so play it safe always. A lot of preparation goes into this and then you come up an ultimate product that is no less than a platinum deal; something that the investors won’t be able to resist.  Make it simple, clean, exciting and strong.  You need not make your first pitch tool long and descriptive; just try to say something that can create curiosity within the mind of the investors.

·         A Strong Value Proposition
 Make sure you have a logical answer to the question “why should customers buy your product or service?” Do you have a strong and valid answer to this? If yes, you are a winner.  You have to convince the investors by demonstrating how your business is the only solution to a prevailing issue. You can also back your demonstration with the help of a set of beta customers. Prove to them that you are targeting a sizable market and that your product/service will remain in demand even when your competitors arrive.

Conclusion         
So these are the best tools to raise capital that you can rely on at any given point of time. Raising capital is no cakewalk, you have to do a lot of preparation and planning and the above aspects, if kept in mind, will only make you a stronger entrepreneur than others.
For more information on tools to raise capital, feel free to visit http://mergeralpha.com/.