Venture Capital Raising In Singapore

venture capital funding

Venture Capital Firm

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/

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