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/.

Looking For Tools To Raise Capital? Here Are Some Tips To Remember

Tools to Raise Capital

As a first-time entrepreneur, you must have been rushing from one end to another desperately to raise capital for your startup.

It isn’t so easy indeed. But it’s not impossible too provided you can identify your most suitable tools to raise capital.

You have to understand your business properly before you approach an investor. The current status of your business is the biggest factor to determine which investor you need to approach.

·         If you are entrepreneur with a unique business plan only with no milestones achieved yet, your friends, family and the angels can be your most suitable investors.

·         If you are an entrepreneur with a prototype or a group of beta customers, you can approach the early stage venture capitalists.

·         If you have a proven product/service, a smart and efficient team and a group of trusted customers, you can approach the later stage venture capitalists.

·         If you have achieved the position where you have a sustainable revenue growth and you are expecting profits in the next 1 year, then the public markets can be a suitable tool to raise capital.

In any case, there’s nothing like being able to finance your business with your personal savings. If you can contribute at least 10 to 25% or even better if 50% from your personal savings, you will be in a much better position while sitting in front of the investors.

One of the most important tools to raise capital, that can give the biggest boost to your capital raising effort, is a successful pitch. Try to have your pitch ready at all cost and make sure you summarize everything so that the message you convey is swift, interesting, engaging and time-saving.

Whatever tools you have in your arsenal to raise capital, make sure you use it actively; no need to wait for the investors to ask for it, just come up with it and show it to the investors. These things are essential to make the investor realize how much you are prepared and devoted to raising capital for your startup.

There is another tools to raise capital that can indirectly help you in your fund-raising campaign. It is nothing but an intelligent network that you must become a part of. Becoming a member of such a network will bring you close to your potential investors or buyers, sellers and financial advisors of the startup eco-system. It will not only save your time but will also enable you to increase your contacts and build new business strategies and most importantly, approach only the right investors (i.e. those who are interested in the sector you are dealing with).

Merger Alpha is also an intelligent networking operating in Singapore serving as a common platform for buyers, sellers and investors to acquire, sell or finance private companies.

To know more on tools to raise capital or you feel interested to become a part of this community, feel free to visit http://mergeralpha.com/.

Happy capital raising!

Venture Capital firms In Singapore That You Must Know

Venture Capital Firms in Singapore

Venture Capital In Singapore

It isn’t surprising if you too are eyeing the venture capital industry in Singapore to raise capital for your startup. Over the last few years, venture capital financing in Singapore has flourished rapidly attracting more and more businesses from across Asia to set up their startups in Singapore.

The government of the city-state is also quite active regarding the development of entrepreneurial world for which it has already started various initiatives to attract the global investors. Currently, there are many private and government-aided venture capital firms operating in Singapore that are keeping a close watch on the market to grab the best possible investment opportunities.

If you have a unique business plan and an efficient management team to execute it, here are some of the top investors in Singapore you can approach to set your business off the ground. 

List Of Venture Capital Firms In Singapore

·         Ardent Capital
- Industry Preference - Technology, Transactional Commerce and Advertising.
- Stage Of Investment - Seed and early stage investments.

·         Carlyle Group
- Industry Preference - Real Assets, and Corporate and Private Equity.
- Stage Of Investment - Early stage, late stage and private equity investments.

·         Digital Media Partner
- Industry Preference - Digital Market and Consumer Internet.
- Stage Of Investment - Growth stage investments.

·         Extream Ventures
- Industry Preference - Internet, Security, Biometrics and Semiconductor.
- Stage Of Investment - Seed and early stage investments

·         Flag Capital
- Industry Preference - Energy Resources and Real Estate.
- Stage Of Investment - Seed stage investment

·         Golden Gate Ventures
- Industry Preference - Technology, Mobile, Online Business, Finance, etc.
- Stage Of Investment - Seed and early stage investments

·         GGV Capital
- Industry Preference - Healthcare, Infrastructure, Consumer products and services.
- Stage Of Investment - Seed stage, early stage and later stage investments.

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

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

·         JFDI.Asia
- Industry Preference – Technology.
- Stage Of Investment - Seed stage, early stage and grant investments.

·         JAFCO Asia
- Industry Preference - Technology.
- Stage Of Investment - Seed stage, early stage and later stage investments.

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

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

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

·         Upstream Ventures
- Industry Preference - IT, Internet, Software Services, Security, Biometrics, IDM and Semiconductors.
- Stage Of Investment - Early stage investments.

·         Welden International
- Industry Preference - IT and Software, Internet/Digital marketing, Clean tech, Semiconductors, and emerging technologies.
- Stage Of Investment - Seed, early and later stage and private equity investments.

Conclusion

Finding the right venture capital partner can be a time-taking task and you need to have a lot of patience to ultimately find someone who shows interest in your business. However, there’s an even better way to save your valuable time and money and get faster access to suitable investors. Why not become a part of a network that brings together buyers, sellers, investors and advisers and enables them to get in touch with each other more easily? Think about it.

For more information on such an intelligent network or other venture capital firms in Singapore, feel free to visit Merger Alpha http://mergeralpha.com/.

A List Of Firms You Can Chase For Raising Venture Capital In Singapore

Raising Venture Capital In Singapore
The fast-growing venture capital industry in Singapore has opened ample opportunities for the Southeast Asian startups. Asia was always a powerhouse of talents who were waiting for the right opportunity to turn their unique ideas into reality. The biggest requirement was the capital they needed to grow their startups and with the entry of numerous international VC firms, the entrepreneurs are now quite hopeful of seeing their dreams fulfilled.
In case, you are planning to raise venture capital in Singapore, here’s a list of some of the top venture capital firms that are awaiting you provided you have a unique business idea to target a sizable and scalable market and a smart and hardworking management team.

Top Investors Offering Venture Capital In Singapore
•    Adam Street Partners – Invests in - Software, enterprise software and Biotechnology.
•    Ardent Capital – Invests in - Technology, Transactional Commerce and Advertising.
•    Carlyle Group – Invests in - Real Assets, and Corporate and Private Equity.
•    Digital Media Partner – Invests in - Digital Market and Consumer Internet.
•    Extream Ventures – Invests in - Internet, Security, Biometrics and Semiconductor.
•    Fenox Venture Capital – Invests in - Technology.
•    Flag Capital – Invests in - Energy Resources and Real Estate.
•    Golden Gate Ventures – Invests in - Technology, Mobile, Online Business, Finance, etc.
•    Gree Ventures – Invests in - Technology and Online Business.
•    Gobi Partners – Invests in - Digital Media, Digital technology.
•    GGV Capital – Invest in - Healthcare, Infrastructure, Consumer products and services.
•    Innosight Ventures – Invests in - Internet Marketing, Mobile Application Development, Mobile Gaming, IT Security, etc.
•    Intel Capital – Invests in - Digital Media and Entertainment, Software Services, Computing, Mobile, Consumer Internet, Manufacturing Industry.
•    JAFCO Asia – Invests in - Technology.
•    JFDI.Asia – Invests in - Technology.
•    Mclean Watson Capital – Invests in - Technology, IT, Software Services, Telecommunications and Energy.
•    Singtel Innov8 – Invests in - Digital Content Services, Customer Service Enhancers, Next Generation Devices, Network Capabilities, etc.
•    SEAVI Advent – Invests in - technology, healthcare, energy, etc.
•    TNF Ventures – Invests in - Telecommunications, Technology, Medical, Eco-friendly Products/Services, Media, etc.
•    Upstream Ventures – Invests in - IT, Internet, Software Services, Security, Biometrics, IDM and Semiconductors.
•    Welden International – Invests in - IT and Software, Internet/Digital marketing, Cleantech, Semiconductors, and emerging technologies.

Conclusion
Getting access to Venture Capital in Singapore is no more a distant dream; all you need is a sound business plan. Also make sure you target the right investors and not waste time chasing the one is not interested in the industry you are dealing with. The above list also covers the sector preference of the investors so that you find it easier to recognize your suitable investor.
For more information on venture capital in Singapore, feel free to visit http://mergeralpha.com/

An Overview Of Venture Capital Financing In Singapore

It was certainly the establishment of the TIF (Technopreneurship Investment Fund) that has led to the sudden growth of venture capital financing in Singapore. Although still in its nascent stage, the venture capital industry in Singapore has witnessed significant increase in the number of VC firms over the past few years.

The government of Singapore is actively involved in boosting the country’ startup eco system. For this reason, the government has started many popular initiatives and Block projects that are meant to provide the entrepreneurs with required essentials for setting their business off the ground.

There are many venture capital funds that are operating under the government. Foreign entrepreneurs In Singapore, however, need to have a Singaporean partner or a VC partner in their venture so as to gain capital from the government.

Today, Singapore has emerged as a VC hub. Technology companies from across the world come in search of venture capital financing in Singapore as the country has emerged as one of most business-friendly nations in the world. The favorable government policies, well educated population, and a friendly culture have together made Singapore Asia’s financial and commercial centers.

The government is striving to attract more and more venture capital firms to invest in startups and to make this happen, it has even increased the funding from the government itself. Apart from the capital, the government also provides the startups with other fundamental facilities like office spaces, training, mentoring and equipment.

The private venture capital financing in Singapore is also gradually expanding. The members of Singapore Venture Capital and Private Equity Association are constantly increasing in numbers. Venture capital financing from government, private funds and business angels have become the prime source of capital for the Singapore startups. Not only local, even foreign investors are also coming to Singapore to expand their business.

Singapore is on its way to recreate Silicon Valley in Asia. The National Research Foundation, Singapore, has selected it second batch of venture funds under its Early Stage Venture Fund Scheme (ESVF) to raise a total of S$120million for early stage investments. In this bracket, the government will invest S$10 million each on a one to one basis in 6 funds. The VC firms selected by the government include Jungle Ventures, Golden Gate Ventures, Walden International, New Asia Investments, SBI Ven Capital and Monk’s Hill Ventures.

Under the ESVF Scheme, the government co-invests with selected venture capital funds to invest in the early stage tech startups. The initiative aims at attracting more and more Venture Capital Financing in Singapore and enable the startups to set their businesses off the ground.

The Series A startups usually approach the business angels or certain VC firms who show interest at this stage of developments. The International investors are, however, mostly seen at the later-stage investments as the businesses are already established and the risk involved is significantly less.

The best strategy for the entrepreneurs is to spread their networks as much as possible as this will greatly improve their visibility in the global market and help them attract the investors.

Merger Alpha, based in Singapore, is an intelligent network of buyers, sellers, strategic and financial investors and advisors that aims at fulfilling the needs of the fast growing Asian markets. For those who want to increase their networks so as to get access to their potential investors or buyers can easily become a member of this network.

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

Major Capital Raising Options In Singapore

Today, Singapore is one of the fastest growing startup markets. Entrepreneurs from various parts of Southeast Asia come with the objective of capital raising in Singapore. No wonder, there is ample scope for the entrepreneurs in Singapore these days, as more number of investors are getting interesting in pouring their funds to back these startups and gain profits.

Broadly, there are three major options for capital raising in Singapore: friends and family, government funding and private equity funding.

Friends and Family

Although it often remains a topic of debate, there are still examples where entrepreneurs have greatly benefited from approaching their friends and family to seek capital for setting their business off the ground. The only red signal is the risk of bitterness that sometimes crops up in relationships in case there is any sort of dishonesty or injustice.

The best thing entrepreneurs can do is not to mix their professional bond with the personal. Also, the financial matters in such partnerships should be dealt with extreme care so as to ensure that there is no scope for any kind of annoyance.

Government Funding

The government of Singapore is also actively working on boosting the startup ecosystem for which it has already started quite a few initiates such as the SPRING, MDA i.Jam and the NRFTIS (national Research Fund Technology Incubation Scheme).

Moreover, the government is striving to push the infrastructural developments for the entrepreneurs and has started many startups support services in the country. The Block projects initiated by the government are meant to fulfill the entrepreneurial requirements and give them ample scope and space to set up their potential businesses.

Private Equity Funding

Private equity funding comes from the private investors like angels, venture capitalists, banks and other organizations. A time comes when funds from the informal sources are no more enough to generate further growth of the company and that’s the point where entrepreneurs need to seek private equity funds.

Over the last few years, the numbers of angel investors and venture capital firms have significantly increased in Singapore. These investors support the high-potential startups with an aim to get a good return on their investments which is usually 25% to 30% for each year’s financing.

Usually, the angel investors in Singapore come forward for the seed-stage investment in startups while the venture capital firms prefer to invest in the second or third rounds, although for a unique business idea, the VC also can get interested at the seed stage financing.

The venture capital firms in Singapore are more interested in technology, service and manufacturing sectors and invest hugely on businesses looking for capital raising in Singapore.

Some of the most popular venture capital firms in Singapore are JFDI.Asia, JAFCO Asia, Innosight Ventures, Gobi Partners, Ardent Capital, Jungle Ventures and others.

Conclusion

Capital raising in Singapore has become a very lucrative strategy today. The favorable government policies and the presence of numerous private investors have altogether created a very sound atmosphere for the startups to flourish. For entrepreneurs planning to raise fund in Singapore, the best step is to increase their networks so as to get closer to more number of people and ultimately find someone who can introduce them to a potential investor.

For further information on capital raising in Singapore, entrepreneurs can also become a part of Merger Alpha – an intelligent network that brings together buyers, sellers, investors and financial advisors under one roof. Feel free to get in touch with us at http://mergeralpha.com/

Points To Remember Before You Sell Or Finance Your Company

A lot of factors come into play whenever we plan to sell or finance companies. The best thing in both the cases is to keep yourself prepared for the ultimate day when you meet a potential buyer or an investor. You should start planning 2 to 5 years in advance before you actually sell your company. Similarly, finding a suitable investor also requires a lot of patience and hard work.

Here are certain things you need to know or do before your sell or finance companies.

Things To Do Before You Sell Your Company

•    Meet The Tax and Estate Planner


Retirement is one of the most common reasons why business owners plan to sell their companies. Anyways, it is critical to get in touch with a tax planner and estate planner and discus your plan with them. Let them review your tax and estate situations. Before you sell, there are many things you can do to mitigate your taxes.


•    Get Your Financials Ready


Getting your financial statements ready is very essential and you should prepare your financials in such a way that it instantly appeals to the buyers. Remember, it Is not you should be satisfied rather your potential buyers. So, tell them something that can get attracted to.


•    Make Your management Team work Independently


Are you the sole “Hero” of your company who does everything single handedly? From accounting to human resourcing to sales? Although it is something that should make you feel proud of yourself but when it comes to impressing the buyer, it will ruin everything. A buyer prefers a business which is self-sustainable – a business that can run smoothly without depending on you. This means, you must fill the various spaces in your management team so that it can work efficiently and independently.


•    Minimize Risk


Any loophole in your business can indicate a risk which a buyer will not really like. Right from the beginning, set yourself a goal that you will have to minimize the risk as much as possible, so that when the time comes to sell the company, you don’t need to struggle much to prove how lucrative the deal is for the buyer.


•    Talk To An Advisor


Every company is different. Just because your friend has closed a great deal doesn’t really mean that you will also go through the same phase. The challenges you will face may be quite different from what your friend has faced. So, it would be wise to talk to an M&A advisor and allow him to review your business. A good long=-term relation with such financial advisors proves highly beneficial in increasing the value of a business.


•    Show Growth Potential


Make a list of all those factors that indicate the huge growth potential of your business. Trust me, a potential buyer would love to see that. Not only will he/she gain confidence in your business but will also give due credibility to it. It is a great asset for your company so make sure you set the right graph of the company right from Day 1.

Things To Know before You Finance Your Company

•    Have A Right Business Plan


If you are planning to fund your newly-started business, your biggest requirement would be to have a unique business idea that shows high growth potential. Without a great business plan, it would be impossible to attract an investor. Venture capitalists are used to taking high risk investments but only for those businesses that involve a unique idea with a scalable and sizable market.


•    Know Your Finances Well


Investors find confidence when they see that the entrepreneur is fully aware of his/her financial situations and requirements. You must know how much you need and how you are planning to utilize the fund they have invested. It’s better not to raise too much capital at the first round. Venture capitalists offer several rounds of financing, so no need to ask for a huge fund for the initial operational cost.

However, also make sure that you are not too modest to create doubts in the mind of the investors. Simply ask what you think would be sufficient for your initial round. Your confidence is very important to help the investor also have confidence in your company.

•    Put Your Personal Savings To Use

Financing companies becomes much easier when you show the investors a significant contribution from your side as well. If you have enough personal savings, try to take charge of at least 25% of the financing, or if that is unaffordable then 10% at least. This will make the investors realize your commitment to the venture and encourage them to come forward without much apprehension.

Conclusion

Either you sell or finance your companies, at the end of the day, the sole objective is to make huge profits. Make sure you sell your company when its performance is at its peak. That is the point where a business looks most attractive. Isn’t it?

For more information on selling or financing your companies, feel free to visit http://mergeralpha.com/

Merger Alpha is an intelligent platform that brings together buyers, sellers, investors and financial advisors under one roof so as to redefine how entrepreneurs and business owners Sell or Finance Companies.

Feel free share your thoughts with us in the comment box.