Every year numerous startups fail to thrive in this competitive market, the most important reason being the inability to get proper funding. Money is the lifeline of any sort of business and the lack of funding will certainly drive the business towards miserable failure. Entrepreneurs need to know ways to get funding from investors for their venture.
Many insurance startups are helping to bring about an evolution in the insurance sector. These companies are adapting themselves pretty fast according to the expectations of the customers and this is great news. As stated earlier if you want to make your startup go a long way then proper funding is a must. Remember getting funding in Singapore is not that hard if you know how to go about it.
Here are 10 sure-shot ways to raise capital for your Singapore startup.
Fending for yourself.
To start your startup, you will need to have some fund ready and for that, you must spend from your pocket. Getting a potential investor right from the beginning is pretty difficult because your company is at a nascent stage. If you are ready to bootstrap, definitely the commitment to the company will be stronger. Invest your hard-earned money and stay focused.
Small investors can buy shares in your company and if your company succeeds they will reap the benefit. Suppose your company fails to succeed, then the small investors will be at risk of losing the money that they invested. Investing in the shares would mean the investor is gaining an equity position in your company.
Angel investors invest in ventures with a promising future. They will more than just investors, working in groups; they can even intrude into the policies of the company. They also have the right to provide advice as and when needed. They can own up to 30% of the company’s equity.
Fund from Venture capitalists.
Venture capitalists invest in stable companies from which they are sure to get profit. They can be overbearing at times you have to have a more open mind, if you want to get funding from venture capitalists, they will be in a hurry to retrieve the amount that they have invested in your company. Before getting funding from venture capitalists you have to be sure about it. They will also determine the scalability and sustainability of your company, so honestly, getting funds from venture capitalists is not a cup of tea.
Business incubators and accelerators.
Your business will get the required support to grow from the business incubators. The accelerators will prepare your company to be daring enough to take the big step forward. Your business must show loyalty and should be committed to the purpose.
They will assess your credibility for 4 to 8 months. After this period they will take the major decision of whether they will invest in your venture or not. They will enable you to connect with relevant people such as mentors, investors and other owners of small startup companies which will be beneficial for your venture.
These kinds of competitions are great for raising funds. These competitions help startups with great potentiality to get raise funds. In these business competitions, you need to have a pitch deck ready along with the prototype of the product.
If you win the competition, not only will you get prize money but also a certain level of popularity and fame. A good reputation is very important for any business to flourish. It depends on you whether your product has the capacity of winning the contest or not. Your main aim will be to convince the investors that their money will remain safe if they invest in your startup.
If you want your business to grow then you might have to consider taking out bank loans seriously. You will get working capital loans and funding. You will require an amount to run your company smoothly every day. The loan which will ensure the smooth operation of your business is the working capital loan.
Suppose you have to pay off the monthly rent of your office, the salary of the employees, the other costs and much more comes under the working loan capital. Now, as far as the funding is concerned, you have to share your business plan with the bank along with the details pertaining to the valuation of the company and much more. In Singapore, banks do provide SME finance
Peer to peer lending.
These are platforms that will bring the public in the picture. Suppose you want a loan, you can visit these platforms where there will be people who might show interest in your venture and you can lend money from them. Now, the lender will derive the benefits from your company through good interest rates.
The Government of Singapore helps the young startups to grow and that is why it has started giving out grants to systematize the entire process. There are productivity solutions grants which is meant for startups to utilize advanced technologies for solutions pertaining to productivity solutions. The enterprise development grant will help businesses to become visible in front of the international crowd. Again, the PACT scheme will help businesses of all sizes to collaborate and develop together.
If you need funds urgently then you can start selling your product before it is even launched. Take Samsung and Apple, for example, the pre-order tactic always helps to maintain the smooth flow of cash before the official launch of the products. You can also consider selling some of your assets to handle the emergency. Credit cards, honestly, shouldn’t be your “go-to” option unless there is any compulsion. However, your business credit card can help you to fetch a lump sum of money instantly. Remember if you have a large scale business then avoid using credit cards.
obtaining proper funding is vital for startup success. Lack of funding is a major reason for failure in today’s competitive market. However, in Singapore, entrepreneurs have several avenues to raise capital. These include personal investment, equity crowdfunding, angel investors, venture capitalists, business incubators, accelerators, business competitions, bank loans, peer-to-peer lending, government programs, and innovative approaches like pre-selling products or asset sales. It is crucial for entrepreneurs to evaluate these options carefully and align them with their business goals to secure the necessary funding for their startup’s prosperity.