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/.

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5 Things You Need To Lure A Venture Capital Firm In Singapore

Venture Capital Raising In Singapore

Capital raising in Singapore isn’t that tough if you have the right set of tools to make your idea look appealing. There is enough money in the market and the investors are always in search for the perfect investment opportunity. All you need is to stand in front of the right investor at the right time with the right set of tools.

While venture capital raising in Singapore, you can judge the suitability of an investor by their industry and stage preference. Venture capital firms in Singapore invest in wide varieties of sectors like software, enterprise software, energy, biotechnology, finance, green technology, internet, mobile, e-commerce, etc. They even differ in their stage of investment – some prefer to invest in seed stage, some early or growth stage and there are many who invest in all these stages. So depending on specific requirements, you can chase the investors.

Now investing a venture capital firm in Singaporeventure capital firms in Singapore is again a challenge although it isn’t something impossible. Below are some of the most important things you need to lure a potential investor for capital raising in Singapore.

Things That Venture Capital Firms In Singapore Like To See

A Unique Business Idea

Today we have solutions to almost every critical issue, thanks to the rapid technological advancements that have enabled entrepreneurs to think innovative. So if you need capital for your startup, you have to have a unique idea – something that the market is eagerly waiting for. This means you have an area that is still unresolved. This will not only increase the market potential of your product or service but will also help you convince the investors more easily.

A Great Team

Your team is one of the most obvious things that a venture capital firm in Singapore would like to see. A great management team is at the root any organization’s success and investors rely greatly on smart, efficient and honest teams. It doesn’t really matter if the team members are from your family or not – what matters most is their capability to contribute to your business. Each and every member of your team should be efficient and responsible so that they can gain the trust of the investors.

A Strong Value Proposition

Why do you think people will buy your product? This is a question that any venture capital firm in Singapore will ask you. If you have a proper answer to this question, you won’t have to struggle much for capital raising in Singapore. You have to justify the market potential of your product or service – if possible, through a group of beta customers who are willingly try and test your product and approve it. If your idea is really unique, you can easily find answer to the question.

A Good Referral

Recommendations are a must when it comes to venture capital raising in Singapore especially due to the risk factor associated with venture capital investment. The investors usually rely on recommendations from their close circles, so try to widen your network and get hold of a person who can introduce you to a potential investor. Typically, out of 100 startups, venture capitalists select only 2 or 3 so approaching through a good referral can give you a great competitive advantage.

Risk Management

Your capital raising campaign in Singapore will definitely teach you the importance of risk management. The lower the risk, the higher is the chance of getting a potential investor so make your best possible effort to reduce the risk associated with your startup so that you can easily gin the confidence of an investor. This is again where you will need a group of beta customers to show the investors that people actually like your idea.

Conclusion

When it comes to capital raising, you can summarize everything in just one word – profit. You want profit and so do your investors. They will invest if yours is a high-potential start-up and it is possible when minimize the risk and maximize the profit potential. So just keep the above mentioned points in mind that your venture capital raising in Singapore becomes a successful and pleasant experience.

For more information on venture capital firms in Singapore, feel free to visit Merger Alpha www.mergeralpha.com.

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

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.

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/.

Advantages of Venture Capital Financing

Venture Capital Financing

Venture Capital Financing

Raising capital for a startup is not an easy task, especially if you are trying to attract venture capital financing since the investors here, also known as venture capitalists, are hard to convince. The amount of risk they take while investing in a startup demands an equal contribution from you too. You have to have to have unique business plan, a smart and organized management team, a unique business model, a scalable market and so many other things to impress a venture capitalist.

However, once you have managed to attract venture capital financing and you move forward with a positive approach and honesty, there is no looking back for sure as there are various ways in which your business can benefit from this startup funding method.

Advantages of Venture Capital Financing
•    You Receive Capital At Various Stages Of Development

Usually, those businesses that have high market potential but are not bankable or cannot raise fund from any other source head for the venture capital route. The reason is, nobody wants to take the risk of investing in a seed-stage startup.

The venture capitalists however love to take the risk provided they find the right kind of business to invest in. They don’t mind investing open-heartedly provided you and your team prove your sincerity and dedication towards your goal. Money is not a factor for these investors but you have to give the assurance of huge profit after a certain period which is usually 3 to 6 years. You will receive capital at various stages of the development of your company which will ensure an uninterrupted expansion.

•    Value-added Services Come Along With Venture Capital

Investment in a seed-stage startup involves risk and to minimize that the venture capitalists will provide you with many value-added services apart from venture capital financing like mentorship, alliance and exit facilities. If you are a first time entrepreneur who has managed to attract venture capital, these services will be extremely helpful and will enable you to make proper progress.

•    Valuable Guidance From The Investors Is Like Icing On The Cake

The venture capitalists have an extensive knowledge of finance which becomes a benefit for the  They will share their reservoir of knowledge with you and soon you will be able to see yourself as a more confident businessman. They will offer valuable guidance and also introduce you to influential people in the industry who can also help you in building sound business strategies.

•    No Repayment of Loans Required

If you have taken loan from a bank, you have to start the repayment process right after that. You’ll have to spend your business profits in repaying your loans. However, with venture capitalists, the headache of loan repayment is not there as these investors look for long-term returns. So you have enough time to focus on you business.
Advantages are many but finding the right investor and convincing him is the real test. Once you successfully overcome that phase, you know you are at safe hands. For more information on venture capital financing, feel free to visit http://mergeralpha.com/

Why Venture Capital Financing Is Not Considered Suitable For Every Entrepreneur?

Venture Capital Firm

Venture Capital Firm

A phase that every entrepreneur needs to go through is raising capital for his newly started business. The moment a business idea occurs to him, he tries to convert that idea into reality which instantly screams “I need money Boss!”, and then starts the most challenging process of finding a suitable investor.

There are various methods of startup funding but the one that is considered the most powerful and therefore the most sought-after, is venture capital financing. Venture capital is the money invested by a professional investor, typically a venture capital firm, in supporting those businesses which have a high market potential but are unfortunately not bankable as they involve huge risk. Banks or other financial institutions usually do not prefer to invest in the seed stage startups and that’s where the entrepreneurs turn towards the venture capitalists.

The venture capitalists or the venture capital firms pool money from wealthy people looking to make more money. These firms then invest the money in potential business ideas or at various stages of a business.  They are usually the most sought after as they are willing to take risks, but wait…that doesn’t make venture capital financing suitable for all. There are various factors that determine whether an entrepreneur is suitable for this type of startup funding method or not.

The first requirement is a unique business idea without which no venture capitalist will bother to look at the entrepreneur. A unique business idea means the product/service on offer is unique and is the only solution to a long-prevailing issue. In other words, it is a product or service which the customers are madly looking for. If there’s no uniqueness, the business is not suitable for venture capital financing. Now, this is something that investors will ultimately decide whether they like the idea or not but there is something else that only the entrepreneur will have to think about.

It is his ownership in the business.  If he plans to raise venture capital, he will have to remember that this might require him to share his ownership in the business with the investor (venture capitalists) which is usually around 25 to 50 percent. Not all entrepreneurs are willing to share this asset, so in that case, venture capital is not the right option for them.

However, there are also entrepreneurs who are willing to share a part of their equity with the venture capitalists as these investors offer a lot more than just the capital. Venture capitalists are highly knowledgeable people with an extensive knowledge of the industry they are dealing with. They are masters of finance and have the ability to guide the entrepreneurs with whom they are associated with.

The guidance and sharing of knowledge by the investors immensely help the small businesses and enable them to earn huge profits in comparatively lesser time. So, it all depends upon the entrepreneur whether or not he wants to share his ownership in exchange of such mentorship. The venture capitalists have a strong network. They know influential people in the industry and once they invest in a company, the business benefits a lot from such contacts.
The venture capitalists are usually very choosy. Out of 100 businesses they meet, they might select only one or two and rest of the businesses keep struggling for their luck. This clearly indicates how minutely the entrepreneurs have to think before launching a campaign for venture capital. Without proper planning and preparation, it might just be a wastage of valuable time and energy.

The expenditure associated with venture capital is also very high which often makes it unaffordable for many business owners. No doubt, there are many advantages associated with venture capital financing, it is still essential for every entrepreneur to judge the suitability of the method so as to ensure that he is putting his time, energy and money at the right place.

To know more on venture capital financing, feel free to get in touch with us at http://mergeralpha.com/

Venture Capital Raising In Singapore

venture capital funding

Venture Capital Firm

Over the year, Singapore has emerged as a favourite destination for the Southeast Asian entrepreneurs planning to raise capital for their newly started business or expand the existing ones. Although there are many other nations like Thailand, Hong Kong, Japan, Malaysia, South Korea, India and China, Singapore has apparently achieved the most mature stage.

Today, there are lots of options for capital raising in Singapore, especially the venture capitalists have started showing significant increase in the numbers. Currently, there are over 100 venture capitalists in Singapore.

The industry is although quite new and small compared to those of US and UK, the venture capital firms are however increasingly getting attracted to the destination due to the tax incentives and other favourable government policies. High net-worth Individuals, corporate houses, government boards and many wealthy people are increasingly coming up to open venture capital funds in the country.

Some of the most active venture capital companies of Southeast Asia are located in Singapore. When it comes to capital raising in Singapore, the venture capital industry offers huge scope to the entrepreneurs. Apart from acting as financers, the investors also serve as mentors for the start-ups.

The start-ups are also constantly in search of such investors who can offer them with ample knowledge, guidance and contacts apart from just the capital. The management skills they acquire from the venture capitalists help them hugely in successfully expanding their businesses.

Typically, the venture capitalists in Singapore prefer to invest in the late-stage expansions. However, many also look for high-potential, early stage start-ups. This preference often makes capital raising in Singapore a bit challenging for the entrepreneurs which is however not an impossible thing to do.

There are various types of venture capital firms like, some who prefer to invest in the established businesses, some who prefer those which have already started earning profits while some who prefer to invest in the early-stage start-ups.

Two more ways in which the venture capital companies in Singapore can be categorised are: the independent limited partnership firms and the corporate backed firms.

The most prominent industries in Singapore that are able to attract the venture capital firms are manufacturing and services industry, and the technology sector which usually include biotechnology, software, genetic engineering, etc. Due to the constant innovations and advancements in the IT sector, attracting venture capital has become much easier for businesses related to the industry.

Venture capital raising in Singapore will become easier once the entrepreneurs fulfil all the requirements. The things that the investors primarily look for are: a unique business idea with great market potential, a highly-organized management team with an excellent knowledge of the current market and competition, a sizable and scalable market, an innovative business model and market benefits of the product/service.

On an average, such investments last up to 2 to 6 years after which the investors expect to see a 25-30 percent return on their investments for each year. Such a possibility of profit earning is only possible with the presence of an extra-ordinarily talented management team where each and every member is aware of his/her responsibilities and is highly committed to the customers and investors both.

Some of the most popular venture capital firms in Singapore are JFDl. Asia, Golden Gate Ventures, TNF Ventures, and Ventures Capital etc.

For more information on capital raising in Singapore, visit http://mergeralpha.com/