Capital raising in Singapore has become much easier with the entry of large number of venture capital firms from within the city-state and abroad. There are both private and government-backed venture capital firms in Singapore that are together boosting the startup industry with capital and necessary management and financial guidance. If you are currently looking for suitable investors for capital raising in Singapore, below are certain things that you need to be aware of.
Points You Should Always Remember While Capital Raising In Singapore
- It Is The Investor Who Is Important, Not The Firm
As a first-time entrepreneur, you might not figure out the difference between chasing a firm and chasing an investor; there’s a fine line between the two but the impact is often significant. Each person is different; the person may have his/her own way of thinking and liking, so you never when and how a particular investor gets attracted to your business plan. Explore your social network through which you might be able to get the person who can introduce you to a suitable investor. Once you find an investor who is interested in your sector, start chasing him/her, but smartly of course.
- Follow Your Potential Investors Everywhere
It is just where we ended in point number 1, i.e. following the investor. Follow in such a way that you gradually attract them towards you without bothering them much. Remember, the venture capital industry in Singapore is quite new, so the new VC firms are also deliberately looking for investment opportunities. Try to make yourself noticeable at all cost. This is possible if you start following them on social media, follow their blogs and leave your comments and unique ideas whenever and wherever possible. In simple terms, try to be unique while chasing your investors.
- Utilize Your Personal Savings If Possible
Using your personal savings as your first source of capital can benefit you immensely. If you have sufficient savings and you are confident about the business idea, try to contribute at least 25 to 50 percent from your side. If that’s beyond affordability, try at least 10 percent. This will build confidence in your investors. Venture capital raising in Singapore is still in its nascent stage so try to make the investors feel secure about the investment, or else, there are many who can snatch the opportunity from you.
- First Impression Is The Last Impression
The first meeting with the investors is, often, a make or break situation. Try to bring the best out of you and make your pitch extremely exciting and appealing. The words you speak should reveal your confidence in the business idea you have come up with. The more confident you are; the easier it will be for them to gain confidence in the idea. But, maintain the distance between confidence and over-confidence as the later has a great potential to ruin your capital raising campaign. Be careful!
Today, there are ample options for capital raising in Singapore such as government funds, angel investors, venture capital firms and private equity funds. All you need is a unique business plan, a sizable market, a sound value proposition, a great management team and then, the ability to identify the right investor.
You can also become a part of an intelligent network like Merger Alpha that can offer you the much-needed platform to showcase you business ideas and get easy access to your potential buyers, sellers and financial advisors. If you find the idea appealing enough, feel free to get in touch with us at Merger Alpha http://www.mergeralpha.com/.
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