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

Tools to Raise Capital

            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

Tips for Raising Capital

          Tips for Raising Capital

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.
  • 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, Cleantech, 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 advisors 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/.

Need Tips For Raising Capital? Try To Avoid These Fundraising Mistakes

Tips for Raising Capital

Tips for Raising Capital

Very often, entrepreneurs scroll through the web in search of tips for raising capital for their startup. No doubt, there are a lot of things you can learn about an early stage capital raising campaign and but what is more important is to learn from mistakes made by others. Often, despite having all other things in proper places, an entrepreneur may fail to raise the Dollars just because of a single mistake.

Here’s a list of some of the most common mistakes done by first-time entrepreneurs (at times, even by those who already have experience in capital raising). Though you can never really count a definite number of mistakes as every investor is different in his/her preferences, you can still avoid the following mistakes to be on a safer side.

Asking More Or Less Than What You Need

Determining how much capital you need is nothing less than a fiery trail. You have to remember that raising a seed stage startup requires huge capital and your demand for the capital should be so balanced that neither you ask for too much money nor you go broke during a crisis situation by raising too less. Make sure you raise an amount that is required to meet your milestones and timelines. If you ask something unrealistically low, you will simply welcome a disaster for you by proving to the VCs that you do not have a proper understanding of what it takes to grow a business. So be realistic in your demand even if the amount is too high.

Making Unrealistic Promises

Investors would love to invest in a startup with set goals and timelines. But to demonstrate unrealistic milestones just for the sake of convincing the investors is again not a good idea. They will definitely like to see that you are able to deliver what others think is impossible but better try to ensure that it something that you will really be able to accomplish. No need to put on a superman’s mask as it will be embarrassing if it is pulled off.

Showing Unrealistic Demand For Your Deal

Tips for Raising capital from an investor is also the initiation of a long-term association with the investor who is going to be with you throughout the journey, which should be purely based on trust. There is no place for any dishonesty and if you show that, it is only you who is going to suffer later. Like many other entrepreneurs, if you too have a tendency to show that there are many other investors who are dying to invest in your deal, make sure it is genuine. Otherwise, it can be humiliating on your part to cling to the investors’ door waiting for their call even after a month.

Hiring An Agent To Present The Pitch

Being an entrepreneur looking to raise capital, each and every move of yours will be brought under the scanner. If you hire an agent to present your first pitch, it indicates that you do not have the skill and efficiency to present it on your own. It can be an instant turn off for any investor so better ignore the idea and do it on your own.

Keeping Member In The Team Who Do Not Add Any Value

It is very essential for a startup to have a team where each and every member is playing a significant contribution in their respective fields. It is quite common among entrepreneurs to present a team comprising of their friends and family members which is absolutely fine provided the members are highly qualified and have proper business sense to help you grow the business. Otherwise, it doesn’t make any sense investing in a member who has least contribution to make.

There are many such mistakes that can simply ruin all your efforts and encourage the investors to invest in some other venture. Try to ensure that you do not disappoint your potential financers at any cost and consider it as the most important tip whenever you approach your next investor.

For more tips on capital raising, feel free to visit Merger Alpha http://mergeralpha.com/.

6 Tips For Raising Capital For Your Startup

Tips for Raising Capital

Tips for Raising Capital

Why do we have the notion that capital raising is a challenging task?

Of course, it is challenging but what makes it so? There must be certain area that the entrepreneurs often fail to understand and that’s where they get stuck up even after months of preparation. No worries, today we will discuss a few simple tips that will go a long way in helping the entrepreneurs to raise capital successfully.

So all you entrepreneurs out there, read carefully the below mentioned tips and try to analyze what all went wrong during your last fund raising campaign. Often, a minor negligence can put you into trouble, so make sure this time you don’t disappoint the investors. And, if it is the first time you are raising capital, you are lucky enough.

Tips For Raising Capital

Understand Your Business Well

Understanding your business is the most crucial task. Until and unless you know your business well, you cannot demonstrate anything in front of the investors. Despite knowing your business, there are chances that you may fail to articulate everything in front of the investors. Now, these professional guys will only invest when you are able to show them your operations, objectives and vision in complete facts in figures. For this, first you have to determine the value of your startup. Business valuation is a great way to determine the worth of your company based on which you can ask for the capital.

Be Realistic About When And How Much Money You Need

Starting a new business does not necessarily mean that you have to jump into fund-raising right from the seed-stage. Knowing when exactly you need to raise capital is very important. It is best if you fund the business from your personal savings, at least 10 to 25%. It will help you gain the investors’ trust and convince them more easily for the investment when you really need it.

Also, asking unrealistic amount from the investors is also not going to help you either. You may think that asking less than what is required will make you appear more confident but the fact is, you should determine your borrowing needs keeping in mind the worst possible time and not the best. Raising less capital may lead your business to collapse during extreme crisis. It is absolutely ok to ask more if it is realistic.

Get Everything Ready

I wish every entrepreneur knew how critical the preparation is for equity capital raising. You have to make sure right from the beginning that you are equipped with all that is needed to raise capital successfully. From having a unique business plan targeting a sizable market to getting your first pitch ready, everything will together determine whether you will be able to satisfy the investors or not. Your first pitch should be aimed at raising curiosity in the investors about your business. It is very important to get them hooked and once you do it, you know you have achieved 50% of it.

Show Customer Validation And Traction

Where there are customers, investors will automatically come in, so before you approach the investors try to gather a group of customers who believe that your product or service has a genuine requirement in the market and currently there is no other alternative to it. If you can gather a group of beta customers for demonstrating customer validation, your investors are definitely going to give it a thought.

Hire A Trusted Venture Lawyer

The terms and conditions in the VC industry keep changing and a venture lawyer can only provide you with the best guidance to deal with the situation. As an entrepreneur, you may need to raise capital two or three times in your life, so having a reliable lawyer by your side will help you get a good deal.

Find The Right Investor

Make sure you do not chase the wrong investor while looking for one. Wrong investors are those who are interested in an industry totally different from yours. If yours is a tech startup and you are chasing an investor who is interested in the energy sector, you are simply wasting your time. Each second is valuable for you so spend it wisely.

Conclusion

From all other types of capital raising methods, venture capital raising is the toughest and the most crucial one. While it is the only source that can offer you the maximum amount of money, it is also true that convincing a VC can be the hardest exam you have ever appeared. I hope you find the above points valuable and helpful. For more tips for raising capital, you can visit http://mergeralpha.com/.

Good Luck!

Things To Know About Capital Raising In Singapore

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 advisers 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

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 advisers 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.
  • 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 advisors 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/.