What To Expect From Venture Capital Financing In India

The venture capital industry in India is expanding rapidly owing to the presence of huge amount of talent, a business-friendly environment and frequent innovations especially in the IT sector. The local and global venture capital firms in India are currently aiming to invest in a wide variety of sectors like software, enterprise software, technology, internet, e-commerce, healthcare, hospitality, advertising, infrastructure, real estate, etc. If you too are looking for an investor in India, the only thing you have to do is chase the right investor with the right idea.

The emergence of the venture capital industry in the country is definitely a great relief for entrepreneurs like you who have a high-potential business plan but not enough avenues to materialize the idea. Despite having a great idea, the reason you find it very difficult to raise fund from other sources (like private equity) is because of the huge amount of risk involved in the investment. However, it is not the case with venture capitalists; they themselves aim to invest in high-risk startups as they believe that some amount of risk is always needed to ensure a bigger profit.

Below are certain things that you can expect from the venture capital firms in India

  • They Look For Some Amount Of Risk

    No risk, no gain – this is what the venture capital firms typically believe. However, the interesting thing is while they will look for risk, you have to try your best to reduce the amount of risk so that the investors can gain confidence in your business. If your idea is unique and you can justify the potential of your target market, there is nothing like it.
  • They Will Participate in Your Management Team

    Once you enter into a partnership, the venture capitalists will prefer to become a part of your management team. They do this to ensure that the fund they have offered is being utilized in the best possible way so as to ensure great returns before their exit period. They usually share a percentage of your ownership in the company and take part in all major plannings and decisions.
  • They Would Like To Help You Manage The Fund

    Venture capitalists have a huge knowledge of finance and they are always ready to offer you any kind of guidance related to the fund management. You may or may not need it but you can remain assured that they are always there to help you spend each dollar in the right place at the right time. This is a reason why these investors usually invest in sectors they are more familiar with.
  • They Offer Additional Guidance

    They are many other value-added services that you can expect from your investor such as guidance and mentoring related to finance and managerial skills, improving your networking skills and exit planning. As a first-time entrepreneur, you will find these services extremely valuable.
  • They Are Not Necessarily Always Rich

    Venture capitalists are although the most powerful investors, as they are able to offer you maximum amount of fund for your startup, this doesn’t necessarily mean that they are always rich. Venture capital firms raise their funds from other sources like, wealthy individuals or group of individuals, pension funds, endowment funds, etc. Once they pool the money, they look for high potential start ups to invest it and gain much higher returns.
  • They Have A Definite Exit Time

    Venture capital firms usually prefer to exit ventures after a certain period which may range from 3 years to 7 years. The do the exit planning right at the beginning and so strive their best to help you reach a successful position before the exit period.
  • They have A Diverse Portfolio

    To reduce the amount of risk associated with venture capital investing, the VC firms make a portfolio of companies and invest separately. They make sure they never pour all the fund in a single company. Diverse portfolio gives them the assurance that even if one company fails, the revenues from the other will easily compensate the loss.

Conclusion

These are some of the vital things you must know about venture capital financing in India. You may not have the same set of requirements or preferences like other start ups such as, looking for guidance or sharing equity, but the overall benefit you will gain is just the same. Not only they will enhance the growth and expansion of your start up but will also enable you to emerge as a better businessman.

Meanwhile, you can try to become a part of an intelligent network, like Merger Alpha, that will make your search for right investors much easier and faster. For more information on venture capital in India, feel free to visit 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.

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/.

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/.

Private Equity Options For Capital Raising In Singapore

Capital Raising In Singapore

The biggest challenge for any start-up is to raise capital so as to set the business off the ground. Commonly, entrepreneurs turn to their friends and families or personal savings for the initial rounds of financing but a time comes when they need more capital for further growth and expansion of the business. Thankfully, entrepreneurs in Singapore have, currently, ample options to boost their start-ups as the city-state is attracting more and more foreign private investors to boost its start-up ecosystem.

Capital raising in Singapore has become much easier now with the launch of many government aided and private equity firms which have realized the growing potential of the Southeast Asian start-up markets. Here are some of the best options for private equity financing in Singapore that businesses, often, tend to approach.

Angel Investors

Angel investors are private investors who are most wealthy people looking to invest in high-risk start-ups in exchange for an equity share in the company. They work either individually or as a network of angels to invest in start-ups and seed stage businesses. The wealthy individuals referred to as the angel investors form a significant part of capital raising in Singapore.

The angel investors typically invest in those high-potential start-ups that deal with a business that they are familiar with. Apart from offering capital, the investors also share their knowledge and offer valuable guidance especially on finance and management.

Venture Capitalists

Compared to the US and Europe, the venture capital industry is still new in Singapore. Venture capitalists, although quite similar to the angel investors slightly differ in their operations. While they are also in search for high-potential start-ups, the return is they expect is, however, much more than what the angel investors expect. Usually, they expect a return of more 25% percent for each year’s investment.

Venture capital is the most popular option for capital raising in Singapore. Not only do they offer guidance and mentorship along with capital, they even offer the maximum amount of financing required by a start-up to grow and expand. The VCs are mostly interested in sectors like IT, manufacturing, services, biotechnology, medicine, etc.

Private Funds

The third private equity option for start-ups is the private fund. Banks, financial organizations and investment companies are the main sources of private funds. Unlike the angel investors and the venture capitalists, the private funds neither invest in the seed-stage or growth-stage not get involved in the investee company’s business. They just await a good return on their investment which is why they are usually considered ideal for the established businesses.

Conclusion

For start-ups planning for capital raising in Singapore, options are many but they have to ensure that they have a sound business plan with a sizable and scalable market. Convincing the private investors is quite a tough job; it might take several rounds of meetings and pitch preparations to ultimately find a suitable investor. For best results, it is highly advisable for start-ups to become a part of a network that drastically reduces the time required to find the right investor. Such a popular network is the Merger Alpha, based in Singapore that performs the task of bringing together buyers, sellers, investors and advisers under a single roof.

For more information on the network or capital raising in Singapore, feel free to visit http://mergeralpha.com/