Singapore as a business destination offers both entrepreneurs and business angels a lot of opportunities. As a location it both attracts a lot of investors looking to fund businesses located in this region, but also entrepreneurs looking for business partners who can invest in their business ideas and projects.
Whether you are a new business entrepreneur, or a start-up company based in Singapore looking to expand further, there are several ways to secure business funding.
Business Grants in Singapore
Singaporean grants are the cheapest way to finance a start-up company, but these paperwork-heavy processes can often be headache inducing. Few grants are awarded, and for those that are, the funding usually must go toward a specific purpose such as seed capital, for example, and can take more than a year to be released.
In addition to this in many cases grants often only support certain industry or business types and not all businesses will even quality for a business grant in Singapore. It is an option that is worth exploring but if an individual is looking for a faster solution and immediate access to cash then a grant may not be the best way to achieve additional capital.
A second option for funding is loans, which are usually granted to well-established businesses that can provide security to borrow against and can prove a prior history of credit, stability, and financial growth. These criteria make it hard for a start-up business to qualify, even if it is only for a small loan. Add to that bank and credit companies’ reluctance to lend money in today’s struggling economy, and approval for high-risk loans is becoming more improbable.
In fact, these days most entrepreneurs in Singapore, with previous experience dealing with banks and traditional financial institutions who are looking to start up a brand new business do not even bother to explore this option since the application process can be long and time consuming with no guarantee of success. In addition- many banks will not even entertain the idea of a loan for a new business. So, if you are looking to launch a start-up in Singapore and need more funds to achieve your goals then you will likely need to explore other options.
Equity Funding in Singapore
A third source of business funding in Singapore is equity. Business angels, or private investors, can provide start-up equity, called seed capital. For young companies in Singapore, private equity investors are a great source for securing initial financing. In Singapore business angels usually provide seed capital in the range from S$20,000 to S$70,000, plus business angels offer their business expertise and contacts to help their investments grow.
Once the business is off the ground and proves high-earning potential, then entrepreneurs can seek venture capital, another form of equity in which a group of investors usually pool money in the S$175,000-plus range for shares and a stake in the company’s operations.
How the Angel Investment Network can Help
If you’re an entrepreneur based in Singapore you can sign-up to the Angel Investment Network to post details of your business, idea or project. Like-minded angel investors can connect with you to help you fund your idea. Singapore Entrepreneurs can find investors based locally in Singapore, but also further afield since the Angel Investor Network is a global enterprise. You are not limited to finding investment just in Singapore, there are investors all over the globe that are looking to invest in a business based in Singapore.