Singapore is a country with a rapidly expanding economy and it ranks among the top countries regarding ease of doing business. It is usually survival of the fittest in the world of startups and you should choose the right place to set up your business. A study by the Small Business Administration Office of Advocacy showed that only 50% of startups survive after five years and only a third make it to the 10-year mark. Startup capital is one of the challenges that comes along with starting a business even when you have a promising business plan. Therefore, you need to sell your ideas to investors.
Capital is a basic requirement for any business to thrive, and if it is not adequate, businesses often tend to crumble. You should be careful about where you are getting funding to avoid future difficulties when repaying the funds. Sources that have low or no interest rates and flexible payment schedules are better for startup businesses. Let us learn some of the ins and outs of getting funds to startup capital.
Using your own funds
This is one of the most common methods of raising initial capital where founders pool together their resources to start the business. The advantage of self-funding is that you get to have full control of the business. The Singapore government is also ready to give cash grants and equity financing schemes to businesses that meet the required criteria.
This is a good way of funding artistic projects or manufacturing of new technology at large scale. You can make your business go international by incorporating a private limited company with the help of One Visa and set up your business in Singapore. The more investors see your business growing, the more they are willing to invest in your business. You can choose between rewards or equity-based crowdfunding. Crowdfunding with rewards gives you control over the business.
These are high net worth individuals who are ready to invest in startups. You do not need to prove the success of the company’s business to get the capital. Angel networks are available in Singapore to promote startups and they organize conferences, workshops, and other events. Such organizations include Business Angel Network South East Asia (BANSEA) and Singapore Angel Network (SGAN).
A venture capitalist invests in large markets and new technology, and you can consider this source if your business falls in that category. The advantage is that you can get large amounts of capital because a venture capitalist invests a minimum of $1 million.
It is good to consider all of the alternatives you have at your disposal before picking the one that suits your business best. The startup stage maybe a difficult one and you need to evaluate your progress closely to avoid pitfalls that fail growing businesses