You have come up with a great business idea, hired employees, and established a company. What’s left is to find an extra source of money to expand your business. One way you may get additional funding is through venture capital in Singapore.
What is Venture Capital?
Venture capital is granted to small companies that possess a huge potential to grow big in the future. You can get such funds from financial institutions, and banks. However, a venture capital fund does not only mean receiving monetary assistance, it may also include technical expertise. In simple terms, the investor or venture capital firm will provide your company with experts and professionals who would provide insights on how to improve your products and services. It is like a complete package for business growth.
Aside from banks and financial institutions, angel investors can also provide venture capital funding.
These angel investors are often affluent individuals or also known as high-net-worth individuals (HNWIs). If these investors team up and form an organisation, then it becomes a venture capital firm.
Venture Capital Process | How to Get Funding
In Singapore, venture capital is a high-risk investment for financial institutions. Since the business that they are funding is yet to become successful, they have to make sure they choose the right company. It is for this reason that you may have to go through a rigorous process before getting a venture capital fund. Moreover, the fact that it serves as an extra source of capital, more and more businesses will also try to grab the opportunity. It is going to be a tough competition.
Thus, it is essential to understand the venture capital process to get higher chances of getting chosen. Take note some of these important factors when you apply for a venture capital fund in Singapore:
Experienced and Skilled Managers
Investors often choose businesses with skilled managers. These executives are responsible for creating strategies that would give potential high returns to a business. Even though a business has come up with a mediocre idea, if the managers are skilled enough, then there is a high chance that the business would be successful. Remember that a well-planned Remember that a well-planned business can only be successful if it is led by a team of talented managers.
Thus, when submitting a business plan to a venture capital firm, make sure to highlight the professional background of your managerial team. They are one of the keys to ensure your funding application gets approved.
Market Opportunities
You may have to take some time to conduct a market size analysis before you apply for a venture capital fund. Venture capitalists are often attracted to a business with a large market size because it just means the business has the potential to generate millions of dollars. In presenting a market size analysis, make sure you also include third-party evaluations, as well as, positive feedback from prospective customers. Doing this will help prove that the business is worth investing in.
High Competitive Advantage
Your products and services should serve a greater purpose— not just for generating large profits. Either it should be something that would help solve major problems, or it is a need that people can’t live without. It is not easy to come up with a unique product or service such as this. The more unique it is, the higher the chance that you may easily get a venture capital fund.
One of the industries that has a high competitive advantage is the Information Technology (IT) industry. They continue to develop applications and systems that would help make any operations more efficient. The technologies they create is the answer to the problem of businesses on how to improve productivity while maintaining quality. For this reason, there are lots of venture tech startups offered to businesses in different IT industries.
Choose a Reputable Venture Capital Firm
For business start-ups, finding the right venture capital firm to fund the business is crucial. It provides you with the extra money you need to expand your business. However, it is not easy to choose among the many venture capitalists in Singapore. Not only do you have to see if they are credible, but you also have to determine if their business goals are aligned with yours.
However, if your goal is to get venture capital for tech startups, then you may want to check out Golden Equator Ventures. Their organisation focuses on providing utmost support to growing businesses that are developing new technologies and creating tech opportunities. Visit their website now at https://goldenequatorventures.com to get to know more about their services.
