A Few Tips Before You Sell Or Finance Companies

Sell or Finance Companies

The other day, a first-time entrepreneur asked me excitedly: “when should I actually plan about selling my company”? Though for a newly-started venture, it is quiet a distant dream but the fact is, you should start planning for the day right from Day 1 of your business. Whether you sell or finance companies is all up to you but it is very important to prepare your business for that moment right from the beginning.

Here are a few tips that you should follow if you are planning to sell or finance companies in the near future:

Place Your Financial Statements In Order

Financial statements very strongly project your company’s future performance. These are really helpful for a buyer to evaluate the future prospects of the business before buying it. Try getting it prepared or verified by a professional accountant so that should give your business more credibility. Even your investors would love to see a great combination of a unique business plan and well-kept financial statements.

Keep Your Business Growing

The best time to sell or finance companies is when they are at the peak. So try to grow your business with an aim to make it attractive enough in front of your potential buyers or investors. The venture capitalist usually prefer to invest in the growth stage businesses and even buyers give more credibility if you can show more sales and return prospects.

Determine The value of Your Business

When it comes to valuing your business for sale, both tangible and intangible assets combine together to help you come to a conclusion. The intangible assets such as your employees, skills and knowledge, customer relations and other things play a key role in determining the company’s actual worth.

There are broadly three different approaches to determine the value of a business: Asset-based Approach, Income Approach and the Market Approach. Being an entrepreneur, if you feel that your investment capital is inadequate, it becomes all the more important to evaluate the true value of your business. This showcases all the strengths and weaknesses of your business and helps you to work on the negative issues as soon as possible. 

Try To Maximize Your value

Now this is very closely related to the above point. The more you maximize the value of your business, the easier it will be to find a potential investor or buyer and it is possible only when you do a proper business valuation. How to maximize your business value? Typically, those companies that focus on their core competencies rather than moving to different directions are far more reliable than those who do just the opposite. Identify the exact mission, vision and future objectives of your company and do not let your focus deviate from them. Also, try to reduce the customer concentration before a sale. Usually, a buyer prefers to invest in a company where a small number of customers generate a large part of the company’s revenue. 

Identify Your Potential Buyer

When it comes to identifying the right buyer for your business, you have to think much more than just the ‘pricing’. Your buyer can be anyone, your rivals, employees, customers or even your friends and relatives and everyone may approach you with different objectives based on which you will have to pitch your business to them. You also have to ensure that your buyer is financially efficient enough to invest in the business. You can hire a broker or an investment banker to verify your buyers which they will do by reviewing the buyer’s equity, fund-strength, source of fund and his/her legal credibility..

If the deal is among family members or friends and relatives, you may not need any agent but if the buyer is from some other section, you may consider hiring a professional to carry out the deal. 

Think About Management Succession Before You Leave

Make sure the business is able to run on its own even when you have left the company. In case you are the sole master in every single department, how will the buyer run the company once you leave? Before you leave, train the person next to you in the company whom the buyer can rely on after you. You must delegate key responsibilities, especially in departments connected to customer relations and revenues. The buyer will always ensure that the business runs successfully even without you so try to take it to that position.

Conclusion

Try to remember all the above points before you plan to sellor finance companies in future. Your newly-started business will give you enough time and opportunity to work on these aspects. If you really have a unique business plan with a sizable and scalable market on target and a highly efficient management team, it won’t be that tough to find the right buyer or investor.

Also, there’s a better way to get easy access to your potential buyers and investors without wasting much time. Try to become a member of an intelligent network like Merger Alpha. It’s a common platform that brings together buyers, sellers, investors and financial advisors of the startup ecosystem. If you want to know more about this community, feel free to visit http://mergeralpha.com/.

Good Luck!

Things To Know About Capital Raising In Singapore

Capital Raising in Singapore

Capital Raising In Singapore

Capital raising is not an easy thing to do. If you love adventure, you might treat it like one. There are so many things you need to think before you actually start chasing an investor. The most important of all is the type of capital you are looking for; either you fund your startup with your own savings or you can approach your near and dear ones or the bigger entities like the angel investors and the venture capitalists.
These days, Singapore is witnessing great elation in its startup ecosystem owing to the entry of large number of global venture capitalists in the city-state who are eagerly waiting for potential startups to come up with lucrative investment options for them.

Here are some of the vital points you should know about capital raising in Singapore:

•    The most common capital raising options in Singapore are personal fund, friends and relatives, government funding, angel investing and venture capital financing.
•    The government of Singapore is highly active about boosting the entrepreneurial industry for which it has started many initiatives and block projects.
•    The initiatives started by the government agencies in Singapore are government-aided equity financing schemes, tax incentives, ash Grants, Business Incubator Schemes and Debt Financing Schemes.
•    The government-aided equity financing schemes include SPRING SEEDS (Startup Enterprise Development Scheme), BAF Scheme, (Business Angel Fund Scheme) and EVFS (Early-stage Venture Funding Scheme).
•    Some of the popular cash grants backed by the Singapore government include iSPRINT, ACE startup scheme, Comcare Enterprise Fund, iSTART ACE Scheme, etc.
•    The angel investors in Singapore are a significant source of fund for the startups. They not only provide capital but share invaluable knowledge, provide mentorship and guidance to the startups. Their main aim is to boost the potential startups and help them gain a successful position in the market which they do in exchange of equity share in the startup.
•    The individual angels in Singapore typically invest between S$ 25,000- S$ 100,000 while the angel networks invest between S$ 250,000 – S$ 750,000.
•    The angel investors prefer to invest in high-potential startups with a unique business idea with great competitive edge that ensures good returns for the investors.
•    The venture capital industry is still new in Singapore. However, the government initiatives are inviting more and more foreign investors to set up their branch offices in Singapore.
•    The venture capitalists, just like the angel investors, invest in unique business ideas targeting a sizable and scalable market. Their main aim is to make huge profits although they too offer guidance and mentorship apart from capital.
•    Usually, the VCs choose to make late-stage investments as they want to reduce the risk associated at the seed-stage.
•    The VCs look forward to a return of almost 25-30 percent on per year’s investment.
•    The investment tenure of the VCs is usually 2-3 years.
•    Before investing, the investors thoroughly studies the management team of the investee company and only after being satisfied with the talent, knowledge and smartness of team, they get ready for the investment.
•    The venture capitalists in Singapore mainly invest in high-tech, manufacturing and the services industry. Among the other important sectors are biotechnology, cleantech, genetic engineering, etc.
•    Private equity funding options in Singapore are offered by the banks, financial institutions and investment companies.
•    The private equity funds are, typically, meant for the established companies. Unlike the angel investors and venture capitalists, the private equity funds do get involved in the company’s management affairs and therefore do not offer any guidance or technical expertise.
•    The various types of private equity funds include corporate funds, independent funds and institutional funds.

Conclusion
Getting access to the right investor is often a time-taking task. Singapore, being a leading destination for doing business, has ample scope for startups but you still need to find the right track through which you can find the right investor without wasting much time and effort. To do so, it is highly recommended for you to become a part of an intelligent network that instantly connects you to the business partner you are looking for.

Merger Alpha is such a network operating in Singapore that provides a common platform to buyers, sellers, investors and financial advisors of the startup industry. It becomes easy for all to get and remain in touch with each other through the network and keeps themselves updated with the latest trends in the industry.
For more information on capital raising in Singapore, feel free to visit Merger Alpha http://mergeralpha.com/.

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/.

Top Venture Capital Firms In Singapore

Over the years, Singapore has been at the centre of technology boom in Southeast Asia. Investors are increasingly getting attracted towards the organized and pro-business attitude of the startup industry in Singapore. Today, the city-state is a highly-preferred destination for global talents with entrepreneurial mindsets. For all those talents, here’s a list of some of the top venture capital firms in Singapore along with their industry focus and investment stages.

Top venture Capital Firms in Singapore

·         Adam Street Partners
- Industry Focus - Software, enterprise software and Biotechnology.
- Early stage investment

·         Ardent Capital
- Industry Focus - Technology, Transactional Commerce and Advertising.
- Seed and early stage investments.

·         Carlyle Group
- Industry Focus - Real Assets, and Corporate and Private Equity.
- Early stage, late stage and private equity investments.

·         Digital Media Partner
- Industry Focus - Digital Market and Consumer Internet.
- Growth stage investments.

·         Extream Ventures
- Industry Focus - Internet, Security, Biometrics and Semiconductor.
- Seed and early stage investments

·         Fenox Venture Capital
- Industry Focus - Technology.
- Seed and early stage investments

·         Flag Capital
- Industry Focus - Energy Resources and Real Estate.
- Seed stage investment

·         Golden Gate Ventures
- Industry Focus - Technology, Mobile, Online Business, Finance, etc.
- Seed and early stage investments

·         Gree Ventures
- Industry Focus - Technology and Online Business.
- Seed stage, early stage and later stage investments.

·         Gobi Partners
- Industry Focus - Digital Media, Digital technology.
- Seed stage, early stage and later stage investments.

·         GGV Capital
- Industry Focus - Healthcare, Infrastructure, Consumer products and services.
- Seed stage, early stage and later stage investments.

·         Innosight Ventures
- Industry Focus - Internet Marketing, Mobile Application Development, Mobile Gaming, IT Security, etc.
- Seed and early stage investments.

·         Intel Capital
- Industry Focus - Digital Media and Entertainment, Software Services, Computing, Mobile, Consumer Internet, Manufacturing Industry.
- Merger, acquisitions and equity investments.

·         JAFCO Asia
- Industry Focus - Technology.
- Seed stage, early stage and later stage investments.

·         JFDI.Asia
- Industry Focus - Technology.
- Seed stage, early stage and grant investments.

·         Mclean Watson Capital
- Industry Focus -Technology, IT, Software Services, Telecommunications and Energy.
- Seed, early, mid and later stage investments.

·         Singtel Innov8
- Industry Focus - Digital Content Services, Customer Service Enhancers, Next Generation Devices, Network Capabilities, etc.
- Seed and early stage investments.

·         SEAVI Advent
- Industry Focus - Technology, healthcare, energy, etc.
- Early to late stage investments.

·         TNF Ventures
- Industry Focus - Telecommunications, Technology, Medical, Eco-friendly Products/Services, Media, etc.
-  Seed and early stage investments.

·         Upstream Ventures
- Industry Focus - IT, Internet, Software Services, Security, Biometrics, IDM and Semiconductors.
- Early stage investments.

·         Welden International
- Industry Focus - IT and Software, Internet/Digital marketing, Cleantech, Semiconductors, and emerging technologies.
- Seed, early and later stage and private equity investments.

Conclusion

To enable the startups get quick access to the suitable investors, there are many networks in Singapore that are, currently, working on a global platform. One such intelligent network is the Merger alpha, an intelligent network that offers a common platform for buyer, sellers, investors and financial advisers of the Asian market so that they can easily come in contact with each other and fulfill their business needs.

For more information, feel free to visit Merger Alpha http://mergeralpha.com/.

Private Equity Options For Capital Raising In Singapore

Capital Raising In Singapore

The biggest challenge for any start-up is to raise capital so as to set the business off the ground. Commonly, entrepreneurs turn to their friends and families or personal savings for the initial rounds of financing but a time comes when they need more capital for further growth and expansion of the business. Thankfully, entrepreneurs in Singapore have, currently, ample options to boost their start-ups as the city-state is attracting more and more foreign private investors to boost its start-up ecosystem.

Capital raising in Singapore has become much easier now with the launch of many government aided and private equity firms which have realized the growing potential of the Southeast Asian start-up markets. Here are some of the best options for private equity financing in Singapore that businesses, often, tend to approach.

Angel Investors

Angel investors are private investors who are most wealthy people looking to invest in high-risk start-ups in exchange for an equity share in the company. They work either individually or as a network of angels to invest in start-ups and seed stage businesses. The wealthy individuals referred to as the angel investors form a significant part of capital raising in Singapore.

The angel investors typically invest in those high-potential start-ups that deal with a business that they are familiar with. Apart from offering capital, the investors also share their knowledge and offer valuable guidance especially on finance and management.

Venture Capitalists

Compared to the US and Europe, the venture capital industry is still new in Singapore. Venture capitalists, although quite similar to the angel investors slightly differ in their operations. While they are also in search for high-potential start-ups, the return is they expect is, however, much more than what the angel investors expect. Usually, they expect a return of more 25% percent for each year’s investment.

Venture capital is the most popular option for capital raising in Singapore. Not only do they offer guidance and mentorship along with capital, they even offer the maximum amount of financing required by a start-up to grow and expand. The VCs are mostly interested in sectors like IT, manufacturing, services, biotechnology, medicine, etc.

Private Funds

The third private equity option for start-ups is the private fund. Banks, financial organizations and investment companies are the main sources of private funds. Unlike the angel investors and the venture capitalists, the private funds neither invest in the seed-stage or growth-stage not get involved in the investee company’s business. They just await a good return on their investment which is why they are usually considered ideal for the established businesses.

Conclusion

For start-ups planning for capital raisingin Singapore, options are many but they have to ensure that they have a sound business plan with a sizable and scalable market. Convincing the private investors is quite a tough job; it might take several rounds of meetings and pitch preparations to ultimately find a suitable investor. For best results, it is highly advisable for start-ups to become a part of a network that drastically reduces the time required to find the right investor. Such a popular network is the Merger Alpha, based in Singapore that performs the task of bringing together buyers, sellers, investors and advisers under a single roof. For more information on the network or capital raising in Singapore, feel free to visit http://mergeralpha.com/

Raising Venture Capital in Singapore Now Becomes Easier

Venture Capital in Singapore

Today, Singapore is the fastest growing VC hub of Southeast Asia with investors and entrepreneurs from around the world getting increasingly attracted towards this emerging Silicon Valley of Asia. Both government and non-government VC firms are together working to boost the startup ecosystem in Singapore.

Ever since the establishment of the TIF, Technopreneurship Investment Fund, the venture capital industry in Singapore has started witnessing a rapid growth. The past few years have seen the entry and formation of numerous venture capital firms that have opened a whole new world for startups looking for venture capital in Singapore.

The government of Singapore is extremely enthusiastic in pushing the startup ecosystem for which it has already launched various initiatives to attract more and more investors. To make Singapore a startup-friendly nation, the government has launched several initiatives such as Equity Financing Schemes, Cash Grants, Business Incubation schemes, Debt Financing Schemes and Tax Incentive Scheme so as to enable the entrepreneurs to get easy access venture capital in Singapore.

The private venture capital firms in Singapore are also working in full swing to support the entrepreneurs looking to start a business in the city-state. Some of the top venture capital firms in Singapore include JFDI. Asia, Golden gate Ventures, Innov8 Ventures, Ardent Capital, Extreme Ventures and others. These are constantly in search for unique business ideas where see a huge market potential and an efficient management team. 

Apart from offering venture capital in Singapore, the VCs also offer guidance and mentorship to the startups. This is an added benefit for the first-time entrepreneurs as they are comparatively new to the industry and have less experience in building business strategies. The investors share their experience, knowledge and valuable contacts with the entrepreneurs and give them ample scope to grow and expand their businesses.

The private venture capital in Singapore mostly goes for the service, manufacturing and the technology sector.  Although the VC firms typically tend to invest in the late-stage startups leaving the seed stage for the angel investors, they still sometimes invest at an early stage if they find the investment extremely profitable. They prefer those ventures which have the potential to grow into a million-dollar business in future.

Entrepreneurs often find it highly challenging to get access to venture capital in Singapore although, with all the requirements fulfilled, they can definitely hope to find the right investor for their company. The total duration of the investment is nearly 3 to 6 years and during this period the VCs expect a return of 25 to 30 percent for each year’s investment. Once the business reaches its peak, they take their share of profit and exit the venture.

The best way to find venture capital is to do a proper valuation of the business, sealing the loopholes, targeting a sizable and scalable market and having an organized management team that can work independently even if the owner is replaced. Do you think you have a sound business plan? Are you looking for venture capital in Singapore? Do share your thoughts with us at the comment box. To get quick access to the right investment partner, you can also become a part of Merger Alpha, a common platform targeted to bring together buyers, seller, investors and financial advisors.

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