IdeasInc StartUp2013! How Venture Capitalists value your business?

It has been 3 months since I have posted my reflections as I was really swamped with waves of challenges that kept hitting both Envisage and Collegify. I will perhaps share some of those in later posts so that aspiring entrepreneurs can learn from my pitfalls too, but well... That's just the common journey which all entrepreneurs have to face!

Nonetheless, I will like to share with you some key lessons learnt from the StartUp2013 conference which I just attended last Saturday @ *SCAPE!

As spoken by Mr Leslie Loh from Red Dot Ventures, how enterprises are valued by a Venture Capitalists are through the following elements:

1. Market validity of the product/services - If your product/services has a proven market segment with paying clients, then you will have a much stronger pitch. If you are simply still fondling with an idea or prototype with non-paying clients, your business is still too early for venture stage funding.

2. Maturity of founders or board members/advisers - The wisdom and expert knowledge/background of the founders/advisers matters. This provides the investors the confidence on the probability of success of your business. However, this might not be impeded by your age (If you are too young), what matters is that you show the level of maturity in understanding what will feasibly allow your business to succeed. But that being said, please do also retain your passion and idealism to succeed. (Perhaps a good mix of personalities displayed within your team will assist in portraying this to your investors)

3. Stage of the enterprise - A growth stage venture with proven track record will always garner a better deal than an earlier stage business. Hence, you have to be really realistic with your expectations on how you value your business. To put it simply, if you have a business with a proven revenue stream and working product that shows demand, you will definitely be able to negotiate for a better valuation. And that's what venture stage fund providers will be requiring.

In addition, you have to understand that return of investment expectations of VCs, are actually on the level of 10x to 30x. Hence, if you are unable to convince them of such profit potential, you will likely not be able to attract their investments. Thus, availability and growth plans beyond the shores of Singapore is critically important!

Alright guys, all the best to your enterprise journey! :)

*Scape presents 'Hear Me Out!' (In conjunction with Envisage's Gen.SEs workshops)

Thinking of starting your own Social Enterprise while attending our workshops? Need a place to pitch and get funds to kick start your business? Consider joining Hear Me Out - a pitching competition organised by *SCAPE! 

"Got a brilliant idea that is itching your brain? Tell us, we’re all ears!
No doubt, we have gaps in our society. The marginalised can definitely do more with our help. Like the saying goes – if not you, then who?
If you have an idea that can better the community, tell us, we can support you with seed funds of up to $7,000!"

Join us tomorrow at *SCAPE, 7:30pm, to find out more! (alternatively you can PM us for further inquiries)

Visit Gen.SEs FB for more information: http://www.facebook.com/EnvisageGen.SEs
Sign up for our FREE Social Entrepreneurship training at: Sign up here! 

New Funding for Social Enterprise Startups!

Dear all

Please take note of two up and coming seed funding available to new Social Enterprise startups in Singapore:

1. NVPC administered - Jump Start Fund (Link)
Information guide about the funds: Click here

2. MSF administered - Youth Social Entrepreneurship Program for Startups (Link)

Eligible young social enterprise start-ups can receive up to 80% of the total project cost, capped at $50,000. The cost refers to start-up and operating costs for up to the first two years. The youth social enterprise start-ups should have:
1. A compelling social objective 
The start-up should have a social impact, helping solve a problem or meet a need in an innovative way.
2. A viable business proposition 
The start-up should have a strong business model and feasible business plans. It must have reasonable organisational capabilities and capacity to run a sustainable business.
3. A committed team with relevant experience and expertise 
The team should preferably know the industry well enough to run the business. The team should also possess some experience in working with the target beneficiaries. The business should be geared towards results, accountability and both sound business and social principles.