If you are an entrepreneur based in Singapore and are looking to fund your business, you may be exploring a range of different options to see which one is best suited to your needs. Typically, most business owners find that depending on how established your business is can determine what sort of investment options are available. In short- the less established your business is, the less likely traditional financial institutions will invest in your business.
What is Private Investment?
Many new companies in Singapore receive initial funding through private investments (such as seed capital or venture capital). In a private investment, young businesses work closely with investors so that the two are on the same page about the company’s growth and development.
Private investors are wealthy individuals who are looking for a profitable return in a viable business venture. These individuals are also known as business angels or angel investors. One of the benefits of partnering with an angel investor is that some individuals will also offer networking opportunities and business connections. It is also possible for an angel investor to take on a management role in their invested company.
In Singapore, it is quite common to find investment clubs. These are groups of like-minded investors who pool their money and resources together to fund a business. Typically, investment clubs only want to invest in a business for future profit. It is uncommon for them to want to play an active role in running the business. For investors in Singapore who wish to run their own business without much if any outside involvement, then receiving funding from an investment club may be the way forward.
Other Forms of Business Investment in Singapore
While other sources of business funding exist, like bank loans and government grants, these are not suitable for all businesses.
In fact, in Singapore while it is possible to get a grant for certain business types, many of these grants are designed and created for specific reasons. For example, two of the main grants in Singapore are for the travel and aviation industry. These are the: Business Improvement Fund (BIF) and the Aviation Development Fund (ADF). One grant that might be suitable for small businesses in Singapore that are looking to export overseas is the Market Readiness Assistance (MRA) Grant. Ultimately, small businesses and start-ups in Singapore may need to go down a different funding route if the grants and loans available are not suitable for the business type.
Benefits of Angel Investors
There are many benefits to partnering with an angel investor if you are looking to fund and expand your business. Private investors are willing to take risks on developing companies that many financial institutions are not (even more so in recent market conditions). Private investment funds are also often received quicker than funding from venture capitalists. Private investors are usually more patient about receiving a return on their investment than venture capitalists or large firms.
Learn About the Angel Investment Network in Singapore
If you are ready to take your start-up, business, or idea to the next level then the Angel Investment Network can help. If you are an entrepreneur based in Singapore and are looking for a business partner, sign-up to the Angel Investment Network and submit details of your project or idea. Investors from around the entire world, looking to invest in a business based in Singapore can search our global network to find businesses that they are interested in and to connect with you.