Techblog
Startup 101: What you need to know about seeking venture capital in Singapore
Startups with all the ideas, manpower and potential can't flourish without the right amount of support. Funding is usually the biggest roadblock, but getting the right investors doesn't have to be a struggle.
Getting venture capital is one of the best ways to finance a new - or even a struggling - business. When external investors contribute the funds needed, it frees up time for owners to concentrate on building their core business. After all, investors are backing the company because they see the long-term potential, so it's important that the job is done well. Venture capitalists do sometimes also own a portion of the equity as part of the deal, and some even get a say in company decisions or offer managerial expertise.
Investing in the Future
As a business owner, it's good to keep in mind that you will be giving up a portion of your company in exchange for funding, and perhaps resources as well. That's why it's essential to weigh the pros and cons in order to make sure the business is ready to go ahead with investors. Chart your company's roadmap and set the goals you'd like to achieve.
The tricky part is securing funding. Thankfully, help is at hand.
SVCA
The mission of the Singapore Venture Capital & Private Equity Association (SVCA) is to "promote the development of the venture capital and private equity industry". The not-for-profit organisation has a directory that lists key local venture capital and private equity fund managers, with information that includes key contact personnel as well as their investment preferences and the funds managed. The SCVA provides opportunities for members to attend events where they can network with venture capitalists. The organisation also has links to regional and global venture capital and private equity initiatives.
Early Stage Venture Fund
The Singapore government has also been forthcoming in helping develop the venture capital industry. In April 2014, it was announced that the government had picked six venture capital firms to each receive $10 million, as part of the Early Stage Venture Fund (ESVF) scheme. This scheme is an initiative under the National Framework for Innovation and Enterprise where the National Research Foundation (NRF) Singapore invests the sum on a one-to-one matching basis.
Singtel Innov8
Singtel Innov8 is a corporate venture capital fund that has an initial fund size of $200 million. The fund focuses on investing in "technologies and solutions that lead to quantum changes in network capabilities, next-generation devices, digital-content services and enablers to enhance customer experience". Prominent investments include Bitglass, a data protection company, and POKKT, an alternate mobile monetisation platform.
Singapore Investment Network
The Singapore Investment Network's aim is to connect entrepreneurs in Singapore to angel investors, and vice versa. As a business, all you need to do is fill in the online proposal form and, once submitted, it goes out to more than 40,000 registered investors in their network. Companies that have benefitted from this service include Precious Cells, a UK-based global provider of stem cell banking services, and Nutrino, an app that works as your virtual nutritionist.
Business Angel Network Southeast Asia (BANSEA)
With its members boasting a quality track record of building successful companies, BANSEA organises 10 to 12 events each year for them to meet with shortlisted startup companies and listen to pitches.
Bootcamp/events
There are also bootcamps and startup events where startups network and meet with investors and are even sometimes mentored by investors. It's possible to pitch for funding at such events too. Find out more from the following sites - e27.co, www.techinasia.com and www.startupbootcamp.org.
Thanks to its ideal location, Singapore has become a popular spot for foreign investors. The government has also made it attractive for foreign venture capital firms to set up a regional base. With the various avenues available to businesses looking for funding, all you need is a unique idea, the right pitch and a lot of determination. With all three, you could be well on your way to making it big.