Ever since the establishment of the TIF, Technopreneurship Investment Fund, the venture capital industry in Singapore has started witnessing a rapid growth. The past few years have seen the entry and formation of numerous venture capital firms that have opened a whole new world for startups looking for venture capital in Singapore.
The government of Singapore is extremely enthusiastic in pushing the startup ecosystem for which it has already launched various initiatives to attract more and more investors. To make Singapore a startup-friendly nation, the government has launched several initiatives such as Equity Financing Schemes, Cash Grants, Business Incubation schemes, Debt Financing Schemes and Tax Incentive Scheme so as to enable the entrepreneurs to get easy access venture capital in Singapore.
The private venture capital firms in Singapore are also working in full swing to support the entrepreneurs looking to start a business in the city-state. Some of the top venture capital firms in Singapore include JFDI. Asia, Golden gate Ventures, Innov8 Ventures, Ardent Capital, Extreme Ventures and others. These are constantly in search for unique business ideas where see a huge market potential and an efficient management team.
Apart from offering venture capital in Singapore, the VCs also offer guidance and mentorship to the startups. This is an added benefit for the first-time entrepreneurs as they are comparatively new to the industry and have less experience in building business strategies. The investors share their experience, knowledge and valuable contacts with the entrepreneurs and give them ample scope to grow and expand their businesses.
The private venture capital in Singapore mostly goes for the service, manufacturing and the technology sector. Although the VC firms typically tend to invest in the late-stage startups leaving the seed stage for the angel investors, they still sometimes invest at an early stage if they find the investment extremely profitable. They prefer those ventures which have the potential to grow into a million-dollar business in future.
Entrepreneurs often find it highly challenging to get access to venture capital in Singapore although, with all the requirements fulfilled, they can definitely hope to find the right investor for their company. The total duration of the investment is nearly 3 to 6 years and during this period the VCs expect a return of 25 to 30 percent for each year’s investment. Once the business reaches its peak, they take their share of profit and exit the venture.
The best way to find venture capital is to do a proper valuation of the business, sealing the loopholes, targeting a sizable and scalable market and having an organized management team that can work independently even if the owner is replaced.
Do you think you have a sound business plan? Are you looking for venture capital in Singapore? Do share your thoughts with us at the comment box. To get quick access to the right investment partner, you can also become a part of Merger Alpha, a common platform targeted to bring together buyers, seller, investors and financial advisers.
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