According to Investopedia, Venture Capitalists (VCs) are investors who provide capital to support small companies or to aid startup ventures. They strategically invest on businesses that will generate significant profit and experience extensive growth.
When you craft a business model or proposal, obtaining a VC backing shall be on your mind.
USING TWO STRATEGIES
1. By Giving A Robust Presentation
You are on a mission to market your business’ ideas and full potential by giving a robust presentation. A robust presentation must contain all the possible challenges that can arise and how to address them. Modify this presentation as you go along to reach a level of satisfaction that will impress your investors.
2. By Offering A Timely Opportunity
The truth is, investors take the leap of faith once they allocate their wealth on a startup or a small business. VCs must brave the overwhelming risks of getting relatively slimmer rewards than investing on established companies. This is why most VCs are cautious. They cannot afford to bet it all on opportunities that will not have large payoffs.
Attract the VCs by offering a timely opportunity. Large payoffs can occur if the market recognizes that there is an existing demand for your product or service. Dwell upon this.
VENTURE CAPITALIST FIRMS IN THE LOCAL SCENE
More and more venture capitalist firms (VCF) have entered the shores of Singapore in the recent years. Exhaust your resources to familiarize yourself with the available firms, which are in lined with what your company represents. Let me help you by enumerating five VCF that have marked their presence last year.
a. FAR EAST VENTURES (Far East Organization’s investment arm)
b. 500 STARTUPS (a seed fund and startup accelerator)
c. SPH MEDIA FUND (Singapore Press Holdings’s investment arm)
d. HATCHER (focuses on B2B startups)
e. DMP (focuses on emerging digital markets)
Once you narrowed down your options into a realistic list of VCF, you must aim to impress them with your innovative idea. Start by pouring your effort into these five crucial points:
a. It is necessary to have an irresistible niche, competitive edge, or unique selling proposition.
b. You must stress on your business’ ability to produce huge profit margins.
c. It is important to exude a significant potential to grow.
d. You shall display legitimate barriers to competition such as having a patent or copyright.
e. It is highly advantageous to have a current demand for your service or product.
Is your business proposal sufficient to fulfill these crucial points?
Good for you!
If so, I wish you all the best in your upcoming endeavors.