How a Singapore Company Facilitates Accessing Angel Funding and Venture Capital for Startups

Startups industry is booming all over the world.

However, most of the projects need funding to build and market their products.

That’s where setting up a Singapore company creates an advantage for ambitious projects.

Though relatively small in numbers, Singapore startup ecosystem is rapidly growing thanks to legislative incentives and advantages of Singapore’s status as global financial centre.

Since 2016, volume of assets managed from Singapore doubled to ca. 5.5 trillion Singapore Dollars with ca. 1 trillion of net asset inflows in 2021-2022.

Singapore’s private equity and venture capital AUM grew at a CAGR of 24.6 per cent to more than S$650 billion from 2018 to 2023, according to the Monetary Authority of Singapore (MAS).

In other words, Singapore has become a global hub of startup funding.

Also, Singapore has established itself as a hotbed for entrepreneurial ventures and startups, offering fertile ground for innovation, strategic business development, and access to venture capital.

As a result, firms headquartered in Singapore secured nearly 80% of the new capital raised by Southeast Asian VC funds in 2023, solidifying the city-state’s position as the regional financial hub.

As startups vie for the attention of venture capitalists to fuel their growth, understanding the intricacies of acquiring such investments becomes paramount.

One platform stands out in facilitating this quest for Singapore's startups: SAVVY PLATFORM, whose mission is to elevate Singapore's global entrepreneurial status and support enterprises across various growth stages.

The Venture Capital Landscape in Singapore

Understanding Venture Capital

Venture capital is a form of private equity and a type of financing that investors provide to startups and small to medium-sized enterprises that are believed to have long-term growth potential.

For many startups, securing venture capital is a vital step in their growth journey, but it requires more than just a groundbreaking idea.

Opportunities and Challenges

Singapore's robust ecosystem offers numerous opportunities for startups seeking venture capital, characterized by strong governmental support, a dynamic entrepreneurial community, and a plethora of venture capital firms.

However, startups face challenges, such as rigorous competition, the need for a compelling business model, and the daunting task of meeting investor expectations.

Recent Figures

Startups headquartered in the city-state accounted for 63.7% of all equity deals in ASEAN 6 in 2023, up from 56.7% in 2022.

In addition, Singapore’s share of the total venture capital raised in the bloc during the year rose to 73.3% from the preceding year's 62.5%.

In contrast, Indonesia, the largest consumer market in the region, contributed 15.4% of the annual deal value.

Startups in the archipelago witnessed a 65.4% year-on-year drop in private funding, mainly due to a decline in e-commerce investments.

Malaysia and Thailand experienced deeper deal value corrections of 82.6% and 86.2%, respectively.

Singapore's sustained share of the investment pie underscores the maturity of its tech ecosystem, in contrast to the emerging markets in the region.

Navigating the Venture Capital Process

Crafting a Compelling Pitch

The initial step towards securing venture capital is crafting a compelling pitch.

It should succinctly communicate the startup's value proposition, market potential, competitive advantage, and the team's expertise.

Startups must also be prepared to meticulously articulate their business model, revenue projections, and how they intend to utilize the venture capital to scale operations.

The Role of Networking

Networking plays a crucial role in accessing venture capital in Singapore.

Engaging with the entrepreneurial ecosystem through events, workshops, and seminars provides startups with the opportunity to connect with potential investors.

Building a robust network can significantly enhance a startup's visibility and its chances of securing investment.

Singapore every year hosts dozens of events related to startups, technologies an VCs.

The biggest of them are the Singapore Fintech Festival and Seamless Asia.

The Cold Outreach

For young entrepreneurs, cold outreach remains the major instrument to draw investors’ attention and get the first cheque from them.

In this case, acting on behalf of a Singapore company gives your project more credit in the eyes of your correspondents.

Paired with promising idea and a strong team, it creates irresistible offer.

Access to Accelerators

Many projects build their products and grow with the assistance of business accelerators.

After completing a few weeks program, founders become more aware of basic principles of entrepreneurship, test their ideas with their peers, train to pitch their projects.

The best projects may get funding from the accelerators themselves.

According to Tracxn, a global startup industry catalogue, Singapore is currently home to 307 accelerators and their combined portfolio is over 7,200 companies.

Number of accelerated companies in Singapore is bigger than in India and China – 5,800 and 6,800 projects respectively.

Angels Network

VC’s concept is usually ‘build to sell’.

Venture Capital usually comes at the later funding rounds, when the project’s risks and rewards are more measurable.

Initial funding, also known as ‘first check funding’, is often provided by angel investors who are looking for long-term profitability rather than short-term capital gains.

This approach resonates very well with the Singapore Government’s economic policy.

The country is currently implementing the Singapore Economy 2030 Plan, which emphasizes the role of technologies in boosting productivity.

This is a very friendly environment for growing tech startups for long-term success – that’s what angel investors target.

Leveraging Platforms for Support

Introducing SAVVY PLATFORM

In the pursuit of venture capital, startups often encounter multifaceted challenges that go beyond mere financing - from statutory compliance to strategic business planning.

SAVVY PLATFORM emerges as a crucial ally for startups, particularly in Singapore's competitive landscape.

SAVVY PLATFORM's suite of services, including incorporation, statutory compliance, and even finding suitable office spaces, places it as a pivotal resource for both nascent and mature startups aiming to capture the attention of venture capitalists.

How SAVVY PLATFORM Can Help

Startups can ensure that their operational backbone is robust and compliant by leveraging the expertise of SAVVY PLATFORM's team of seasoned business administrators.

This not only enhances a startup's appeal to venture capitalists by showcasing a commitment to professionalism and sustainability but also allows the entrepreneurial team to focus on refining their pitch, enhancing their product, and networking—essential components of attracting venture capital.

Preparing for Due Diligence

Venture capitalists conduct rigorous due diligence before committing to an investment.

This involves a comprehensive review of the startup's financials, legal documents, business model, and market potential.

With SAVVY PLATFORM's support in handling administrative and compliance tasks, startups can navigate the due diligence process more smoothly, ensuring that all documentation and legalities are in order.

Best Practices for Engaging Venture Capitalists

Establish a Strong Online Presence

In an increasingly digital world, a strong online presence can significantly impact a startup's visibility to potential investors.

An articulate and engaging website, active social media profiles, and participation in online forums related to the startup's industry can all serve to attract venture capital interest.

Persistent and Strategic Follow-Up

Securing venture capital often requires persistence and strategic follow-up.

Startups should not be discouraged by initial rejections but should instead seek feedback, refine their approach, and maintain engagement with potential investors through updates on progress and milestones achieved.

Utilize SAVVY PLATFORM's Network

SAVVY PLATFORM's extensive network in Singapore’s entrepreneurial and investment community provides startups with a valuable resource for connecting with potential venture capitalists.

By tapping into this network, startups can significantly increase their chances of securing the much-needed venture capital to propel their growth.

Conclusion

Accessing venture capital in Singapore requires a strategic approach underpinned by a compelling business proposition, robust networking, and meticulous preparation for investor scrutiny.

Startups navigating this journey do not have to go at it alone.

SAVVY PLATFORM offers comprehensive support that extends beyond administrative tasks, positioning itself as an indispensable ally in the dynamic and competitive landscape of venture capital financing.

By leveraging SAVVY PLATFORM’s expert services and extensive network, startups can enhance their attractiveness to venture capitalists, navigating the venture capital process more effectively and steering their ventures towards sustained growth and success.

In essence, SAVVY PLATFORM is not just about overcoming the hurdles of administrative compliance but about unlocking the full potential of startups in their quest for venture capital, thus solidifying Singapore's stature as a leading entrepreneurial hub on the global stage.

For startups ready to embark on their venture capital journey and seeking a partner to facilitate their path, SAVVY PLATFORM beckons as the gateway to not just surviving, but thriving in the competitive ecosystem of Singapore’s vibrant entrepreneurial landscape.

Learn more about how SAVVY PLATFORM can support your startup, or contact us directly at [email protected] or +65 9711 8886 (Singapore office).

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