Venture Capital Raising In Singapore
Today, Singapore is one of the most business-friendly nations in the world. The amount of foreign investment it drives has given a significant boost to the entrepreneurial ecosystem. Entrepreneurs are now more confident than ever when it comes to capital raising in Singapore. This is because unlike banks and other financial institutions venture capital firms show the willingness to make risky investments.
If you too have a unique business idea in mind for which you are seeking a VC, here are the basic facts you should about the Singapore venture capital industry. Knowing these will help you understand the structure and current scenario of the sector which will aid in your capital raising campaign.
Facts About VC Financing In Singapore
- Though in its nascent stage, the venture capital industry in Singapore already has more than 100 investors.
- The government of the city-state offers full support to drive in foreign venture capital to boost its startup ecosystem.
- The investments last between 2 to 6 years after which the VCs expect an ROI of at least 25 to 30 percent for each year of investment.
- The investors fund upto 4 to 5 times the net earnings of a company.
- Apart from offering capital, VCs in Singapore also offer valuable guidance. They also leverage their contacts in the industry to help you build strong business strategies.
- Venture capitals firms, typically, look for growth stage or later stage startups as the risk associated gets reduced comparatively. However, there are many firms that even make seed-stage investments provided they find a unique idea with a scalable model.
- VCs look for a unique and innovative business idea, a great manage team, a scalable model, a strong value proposition and a proper understanding of finance.
- From independent limited partnerships firms to corporate backed VC firms, various types of VC companies are currently active in Singapore.
- The government’s initiative to attract venture capital includes various tax incentive programmers and other favorable policies. Over the years, this has encouraged many HNIs, rich corporations and government bodies to start VC financing in Singapore.
- The firms differ from each other in their choice of sectors and investment stage. Technology is, undoubtedly, the most sought after industry due to rapid rate of innovation and the resultant demand.
- Before investing, they access the milestones and the amount of capital you will need to reach each of them.
- The efficiency of the leadership team of a startup is a major deciding factor. The right set of individuals on whom you can entrust the future of your company is a great attraction for a VC.
- Their sole intention is to earn profit so they try to ensure that the capital they offer is spent on the right asset.
- Venture capitalists in Singapore prefer to invest in companies that have already raised capital once or have existing investors.
As an entrepreneur planning to raise capital in Singapore, it is imperative for you to know the above facts about the VC industry of the city-state. For faster access to a suitable investor, you can also become a part of an intelligent network like Merger Alpha.
Merger Alpha is a Singapore-based M&A platform that primarily focuses on the Southeast Asian startup market. It brings together entrepreneurs, investors and advisors of the startup market under a common roof so that they access each other easily and without wasting much time.
To become a part of this network or any more information on capital raising in Singapore, feel free to visit http://mergeralpha.com/.