6 Mistakes You Must Avoid While Raising Venture Capital In Singapore

Venture Capital In Singapore

Raising venture capital in Singapore has gained a lot of attention in the last few years. The rising Asian startup ecosystem is constantly attracting global venture capital firms to set their base in the city-state as it is already on its way to become the Silicon Valley of Southeast Asia.

If you too are one of those first-time investors looking to raise venture capital in Singapore, the first things you should be determined is to avoid the mistakes that entrepreneurs commonly make. The more you are conscious about the mistakes, the higher is the chance of success in your fundraising campaign.

Mistakes You Should Avoid While Raising Venture Capitalventure capital firms

  • Targeting The Wrong Investor

    First-time entrepreneurs often waste their time chasing the wrong investors, i.e. venture capital firms that are either not interested in the industry the founder is dealing with or the stage of development of the startup.

    VCs usually tend to invest in growth stage or later stage of development although there are many who invest in seed stage too. Moreover, VC firms in Singapore invest in wide variety of sectors ranging from software, biotechnology, healthcare to energy, ecommerce, etc.

    Before you start chasing, make sure you are after the one who is suitable both for your sector and the stage of development of your startup.

  • Having No Clear Objective

    If you have started your own business, you need to have a clear idea of your objective. Unless you have this capability to narrate your ultimate objective to the investors, they can’t gain confidence in you or your startup.

    You must know about your product or service and the reason why customers will prefer your product over others’. You also have to know why you need the capital and where exactly you are planning to invest it.

  • Raising Venture Capital Too Early

    It is much easier to attract a venture capitalist if you have already raised capital from some other sources. Try to start with you own savings; it would be great if you can invest around 25 to 50 percent from your personal savings, if any – or that’s too high, you can try to contribute at least 10 percent. Then there are other sources like friends and relatives, crowdfunding, incubators and angels investors who can also be a great source of capital for your startup. In short, venture capitalists gain trust more easily when they see other investors have already invested in your venture.
  • Not Knowing Where Exactly You Will Be Spending The Money

    Venture capital financing is a risky investment so the investors remain extra cautious about how and where the fund is going. At this point, they would like to see you coming up with a strategic financial planner that gives a clear idea of all the elements for which you will be spending their capital. They do this to minimize the risk associated with the investment and ensure a greater profit.

  • Asking For Unrealistically Low Or High Capital

    Unless your approach is realistic, it is bound to create doubt. If you think asking too less money will make your startup look more attractive, you are wrong. It needs to be optimum, neither too high nor too low. The process becomes easier if you do a proper business valuation; when the times comes you can put forth the exact worth of your company.

  • Cold Calling Investors

    Try to approach venture capital firms through a strong referral. Get yourself introduced by someone who is very close to the investors so that they are more confident while looking at the investment. Cold calling them will be of no use as they won’t even bother to look at your proposal, rather it would be a wastage of time.

Conclusion

So these are some of the most common mistakes that you should never do while raising venture capital. Another important aspect is preparation; lack of preparation can also harm your campaign badly so make sure you prepare well before taking the seat in front of the investors. You must have all the basic prerequisites with you like a unique business idea, an innovative model, a smart and efficient management team, your business valuation papers, an interesting and engaging pitch, a lawyer and most importantly, a fair knowledge of finance and management.

For more information on how to attract a venture capital firm, feel free to visit Merger Alpha http://mergeralpha.com/.

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Top Venture Capital Firms In Singapore

Venture Capital Financing In Singapore

Are you looking for venture capital financing in Singapore? Great then, you must have come up with a unique business idea! The venture capital industry in Singapore is quite new; although many firms have been operating here since 1980s, they are still quite different from VCs in their choice of sectors or stages. While the investors usually prefer the traditional industries, the present day venture capital firms in the city-state typically look for high-tech start ups.

Today, there are nearly hundreds of venture capital firms operating in Singapore. The firms invest across wide variety of sectors ranging from software and biotechnology to healthcare and finance. If you already have raised capital before, you will find it much easier to approach and convince these investors in Singapore and if not, even then you can raise venture capital if you have a sound business plan, a unique product or service, a great management team and a sound value proposition.

So, here are some of the top venture capital financing currently operating in Singapore.

Top Venture Capital Firms In Singapore

Adam Street Partners

  • Industry – Biotechnology, Software and enterprise software.
  • Stage Of Investment – Makes Early stage investments.

Ardent Capital

  • Industry – Technology, Advertising and Transactional Commerce.
  • Makes Seed and early stage investments.

Carlyle Group

  • Industry – Real Assets, Corporate and Private Equity.
  • Early stage, late stage and private equity investments.

Digital Media Partner

  • Industry – Digital Market and Consumer Internet.
  • Makes growth stage investments.

Extream Ventures

  • Industry – Internet, Biometrics, Security and Semiconductor.
  • Seed and early stage investments

Fenox Venture Capital

  • Industry – Technology.
  • Seed and early stage investments.

Flag Capital

  • Industry – Energy Resources and Real Estate.
  • Seed stage investment

Golden Gate Ventures

  • Industry – Technology, Mobile, Online Business, Finance, etc.
  • Seed and early stage investments.

Gree Ventures

  • Industry – Technology and Online Business.
  • Seed stage, early stage and later stage investments.

Gobi Partners

  • Industry – Digital Media, Digital technology.
  • Seed stage, early stage and later stage investments.

GGV Capital

  • Industry – Healthcare, Infrastructure, Consumer products and services.
  • Seed stage, early stage and later stage investments.

Innosight Ventures

  • Industry – Internet Marketing, Mobile Application Development, Mobile Gaming, IT security, etc.
  • Seed and early stage investments.

Intel Capital

  • Industry – Digital Media and Entertainment, Software Services, Computing, Mobile, Consumer Internet, Manufacturing Industry.
  • Merger, acquisitions and equity investments.

JAFCO Asia

  • Industry – Technology.
  • Seed stage, early stage and later stage investments.

JFDI.Asia

  • Industry – Technology.
  • Seed stage, early stage and grant investments.

Mclean Watson Capital

  • Industry -Technology, IT, Telecommunications, Software Services and Energy.
  • Seed, early, mid and later stage investments.

Singtel Innov8

  • Industry – Digital Content Services, Customer Service Enhancers, Next Generation Devices, Network Capabilities, etc.
  • Seed and early stage investments.

SEAVI Advent

  • Industry – Technology, healthcare, energy, etc.
  • Early to late stage investments.

TNF Ventures

  • Industry – Telecommunications, Technology, Medical, Eco-friendly Products/Services, Media, etc.
  • Seed and early stage investments.

Upstream Ventures

  • Industry – IT, Internet, Software Services, Security, Biometrics, IDM and Semiconductors.
  • Early stage investments.

Welden International

  • Industry – IT and Software, Internet/Digital marketing, Cleantech, Semiconductors, and emerging technologies.
  • Seed, early and later stage and private equity investments.

Conclusion

Raising venture capital is challenging but a great learning experience. You get to know about your limitations, your mistakes and most importantly, you learn to face rejection. Rejection isn’t always a bad thing – it is just a new lesson that get to learn which makes you more confident the next time you sit in front of an investor.

The above mentioned venture capital firms in Singapore are all actively involved in boosting the startup ecosystem of the whole of Southeast Asia. Just make sure that you choose the approach the right investor at the right time.

For more information on venture capital financing in Singapore, feel free to get in touch with us at Merger Alpha http://mergeralpha.com/.

Top Firms Offering Venture Capital In India

Venture Capital In India

Raising venture capital for your start up is a great challenge and once you accomplish the task successfully, you come out more confident as an entrepreneur. Fund raising is a learning experience and with time it often makes you learn to accept failures with more positivity. So if you have a unique business idea in your mind, do not hesitate to come forward and approach a suitable investor who is interested in the sector you are dealing with.

Today, India is fast-emerging as a preferred destination for venture capital financing as the numbers of local and global venture capitalists in India are gradually on the rise. If you have a viable plan, you can target the investors operating in the country to help you materialize your plan through venture_capital_stages_of_financing_mbaknol.

If you find the idea appealing, you can select the most suitable venture capital firms mentioned below and start an extensive research on the investors. For your convenience, we have enlisted a few firms offering venture capital in India along with their location, stage preference and industry preference. The list should make it easier for you’re to target only the most suitable investors and get access to venture capital financing as soon as possible.

Top Firms Offering Venture Capital In India

Accel Partners

  • Location – Bangalore
  • Stage – Growth stage startups.
  • Sectors – Infrastructure, Internet and Consumer Services, Mobile, Software and Cloud Enabled Services.

Helion Ventures

  • Location – Bangalore and Gurgaon.
  • Stage – Early to mid-stage startups.
  • Sectors – Technology driven businesses such as Online Services, E-commerce, Mobility, Enterprise Software and Outsourcing.

Canaan Partners

  • Location – New Delhi
  • Stage – Seed, early-stage and late stage, private equity and debt financing investments.
  • Sectors – Biotechnology, Software and Healthcare.

Matrix Partners

  • Location – Mumbai.
  • Stage – Seed and early stage venture capital financing in India.
  • Sectors – Financial Tech, Software, Enterprise Software, Mobile, SAAS and E-commerce.

Westbridge Capital

  • Location – Mumbai.
  • Stage – Early stage and later stage startups.
  • Sectors – Mobile, iPhone and Android.

Band of Angels

  • Location – Mumbai.
  • Stage – Seed, early stage and later stage investments in startups.
  • Sectors – Software, Healthcare, Health and Wellness.

Bessemer Venture Partners

  • Location – Mumbai.
  • Stage – Seed, early stage, and later stage investments along with private equity and debt financing investments.
  • Sectors – Software, Enterprise Software and Mobile.

New Enterprise Associates

  • Location – Bangalore
  • Stage – Seed, early, later stage, private equity and debt financing
  • Sectors – Software, Biotechnology and Mobile.

Battery Ventures

  • Location – Mumbai.
  • Stage – Seed, early stage and later stage investments along with private equity and debt financing.
  • Sectors – Enterprise Software, Software and Analytics

Light Speed Venture Partners

  • Location – New Delhi.
  • Stage – Seed, early stage, later stage investments, private equity, debt financing and grant investments.
  • Sectors – Enterprise Software, Software and Mobile.

Nexus India Capital

  • Location – Mumbai.
  • Stage – Seed, early stage, later stage startups.
  • Sectors – Enterprise Technology, SAAS, Business, Consumer Services, Consumer Internet and Mobile.

Jumpstart Ventures

  • Location – Bangalore.
  • Stage – Early stage, later stage and debt financing.
  • Sectors – Software, E-commerce and Internet.

Conclusion

Firms offering venture capital financing in India mostly look for high-potential startups who have an idea that can bring a great change to the society or offer a much-needed solution to an unresolved issue. It can be anything in any field ranging from technology to financial services, hospitality to health and wellness. The ultimate aim of the investors is to earn huge profit from your product or service for which they are eager to come forward and offer venture capital financing.

Venture capital in India is still in its nascent stage but the rate at which it is growing gives a clear indication of how local and foreign investors are keen to invest in the Indian markets. India is one of the most sought after markets on the globe; every company tries to set a base in India owing to its business-friendly environment, huge manpower, world class infrastructure and extreme talent that facilitates innovation in all spheres.

Today, you have ample scope if you are looking for venture capital in India. All you need is a unique product or service, a great management team, an innovative business model and a sound value proposition so as to minimize the risk associated with venture capital financing in your startup.

For more information on venture capital in india, feel free to visit Merger Alpha http://mergeralpha.com/.

You can also leave your thoughts and queries in the comment box given below.

Venture Capital Firms In India: The Catalysts For Your Dream Business

Venture Capital Financing In India

 

Are you still sitting idle with the unique business idea in your mind? Don’t do that! Turn that dream idea into reality andventure capital become your own boss for the rest of the life. Venture capital financing in India has already started creating the favorable platform to encourage startups. Now that’s really great!Every business needs a catalyst to kick off. If you too have a viable plan, you must not miss the opportunity to chase the potential venture capitalists in the country.

Here’s a list of some of the top venture capital firms in India that are eager to invest in growing markets. Depending on their sector and stage preference, you can enlist some of the names, do a research on the investors and plan a strategy for your campaign to raise venture capital financing in India.

 

Top Venture Capital Firms In India

 

Accel Partners

Location – Bangalore
– Invests in growth stage startups.
– Targets sectors like, Infrastructure, Internet and Consumer Services, Mobile, Software and Cloud Enabled Services.

  • Battery Ventures

    Location – Mumbai.
    – Invests at seed, early stage, later stage investments along with private equity and debt financing.
    – It is one of those venture capital firms in India that prefer to invest in Enterprise Software, Software and Analytics.
  • Helion Ventures
  • Location – Bangalore and Gurgaon.
    – Invest in early to mid-stage startups.
    – Targets sectors like, Online Services, E-commerce, Mobility, Enterprise Software and Outsourcing.
  • Canaan Partners

    Location – New Delhi
    – Invests in seed, early-stage and late stage, private equity and debt financing investments.
    – Preferred sectors are Software, Biotechnology and Healthcare.
  • Bessemer Venture Partners

    Location – Mumbai.
    – Involved in seed, early stage, later stage venture capital financing in India along with private equity and debt financing investments.
    – Prefers to invest in Software, Enterprise Software and Mobile.

  • Matrix Partners

    Location – Mumbai.
    – Prefers seed and early stage investments.
    – Preferred sectors are, Software, Enterprise Software, Financial Tech, Mobile, SAAS and E-commerce.
  • WestBridge Capital

    Location – Mumbai.
    – Invests at early stage and later stage startups.
    – Prefers to invest in sectors like Mobile, iPhone and Android.
  • Band of Angels

    Location – Mumbai.
    – Invests in seed, early stage and later stage startups.
    – Targets sectors like, Software, Healthcare, Health and Wellness.

  • New Enterprise Associates

    Location – Bangalore
    – Invests at seed, early, later stage, private equity and debt financing
    – It prefers to invest in Software, Biotechnology and Mobile.
  • JumpStart Ventures

    Location – Bangalore.
    – Involved in early stage, later stage and debt financing in India.
    – Its preferred sectors are Internet, Software and E-commerce.
  • LightSpeed Venture Partners

    Location – New Delhi.
    – Invests at seed, early stage, later stage investments, private equity, debt financing and grant investments.
    – It prefers to invest in Enterprise Software, Software and Mobile.

  • Nexus India Capital

    Location – Mumbai
    – Involved in seed, early stage, later stage venture capital financing in India.
    – Prefers to invest in Enterprise Technology, SAAS, Business, Consumer Services, Consumer Internet and Mobile.

Conclusion

Today, there are numerous local and global venture capital firms in India that have already raised billions of dollars in the last few years to invest in various high-potential startups in India. If you have a unique product or service and you are confident about its market value, you must try to approach one of the these top venture capital firms in India. Also ensure that you have an efficient management team to execute the plan smartly and strategically. Once you are able to get hold of the right investor, there will be no looking back for you.

 

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

A Few Tips Before You Sell Or Finance Companies

Sell or Finance Companies

Sell or Finance Companies

The other day, a first-time entrepreneur asked me excitedly: “when should I actually plan about selling my company”? Though for a newly-started venture, it is quiet a distant dream but the fact is, you should start planning for the day right from Day 1 of your business. Whether you sell or finance companies is all up to you but it is very important to prepare your business for that moment right from the beginning.

Here are a few tips that you should follow if you are planning to sell or finance companies in the near future:

Place Your Financial Statements In Order

Financial statements very strongly project your company’s future performance. These are really helpful for a buyer to evaluate the future prospects of the business before buying it. Try getting it prepared or verified by a professional accountant so that should give your business more credibility. Even your investors would love to see a great combination of a unique business plan and well-kept financial statements.

Keep Your Business Growing

The best time to sell or finance companies is when they are at the peak. So try to grow your business with an aim to make it attractive enough in front of your potential buyers or investors. The venture capitalist usually prefer to invest in the growth stage businesses and even buyers give more credibility if you can show more sales and return prospects.

Determine The value of Your Business

When it comes to valuing your business for sale, both tangible and intangible assets combine together to help you come to a conclusion. The intangible assets such as your employees, skills and knowledge, customer relations and other things play a key role in determining the company’s actual worth.

There are broadly three different approaches to determine the value of a business: Asset-based Approach, Income Approach and the Market Approach. Being an entrepreneur, if you feel that your investment capital is inadequate, it becomes all the more important to evaluate the true value of your business. This showcases all the strengths and weaknesses of your business and helps you to work on the negative issues as soon as possible.

Try To Maximize Your value

Now this is very closely related to the above point. The more you maximize the value of your business, the easier it will be to find a potential investor or buyer and it is possible only when you do a proper business valuation.

How to maximize your business value? Typically, those companies that focus on their core competencies rather than moving to different directions are far more reliable than those who do just the opposite. Identify the exact mission, vision and future objectives of your company and do not let your focus deviate from them. Also, try to reduce the customer concentration before a sale. Usually, a buyer prefers to invest in a company where a small number of customers generate a large part of the company’s revenue.

Identify Your Potential Buyer

When it comes to identifying the right buyer for your business, you have to think much more than just the ‘pricing’. Your buyer can be anyone, your rivals, employees, customers or even your friends and relatives and everyone may approach you with different objectives based on which you will have to pitch your business to them.

You also have to ensure that your buyer is financially efficient enough to invest in the business. You can hire a broker or an investment banker to verify your buyers which they will do by reviewing the buyer’s equity, fund-strength, source of fund and his/her legal credibility..

If the deal is among family members or friends and relatives, you may not need any agent but if the buyer is from some other section, you may consider hiring a professional to carry out the deal.

Think About Management Succession Before You Leave

Make sure the business is able to run on its own even when you have left the company. In case you are the sole master in every single department, how will the buyer run the company once you leave? Before you leave, train the person next to you in the company whom the buyer can rely on after you. You must delegate key responsibilities, especially in departments connected to customer relations and revenues. The buyer will always ensure that the business runs successfully even without you so try to take it to that position.

Conclusion

Try to remember all the above points before you plan to sell or finance companies in future. Your newly-started business will give you enough time and opportunity to work on these aspects. If you really have a unique business plan with a sizable and scalable market on target and a highly efficient management team, it won’t be that tough to find the right buyer or investor.

Also, there’s a better way to get easy access to your potential buyers and investors without wasting much time. Try to become a member of an intelligent network like Merger Alpha. It’s a common platform that brings together buyers, sellers, investors and financial advisors of the startup ecosystem. If you want to know more about this community, feel free to visit http://mergeralpha.com/.

Good Luck!

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/.

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.Sell or Finance Companies