How to Find an Investor for Your Business in Singapore?

  • August 22, 2023
  • Update date: December 21, 2024
  • Dushyant Sharma

Looking for investors in Singapore to launch or scale your business? For companies, there are many ways to raise funds. But the main thing is not only to raise funds, it is to know why you need the fund, where you use it to expand the business operation and then profit.

If you are an entrepreneur and want to start a new business then company formation in Singapore is the best option for you. As it provides a business-friendly regulatory environment, a highly skilled workforce, and rights to intellectual property. But to avail of these benefits you must register a company in Singapore and start the business operations.

Every business or individual looking for raising funds must ask the following questions to raise the capital from the right source:

  1. Is my product as per the needs of the market?
  2. Is our budget enough to operate the business operations?
  3. What are the next goals of the business and how to reach that goal?
  4. Where will the funding be used to grow the business?
  5. How much funding is required and from which source?
  6. Can we share the equity and decision-making power in the business with investors based on their investment in the business?

After getting answers to all these questions, now you know why you should raise funds. Below we shared all the methods which can be used to raise funds and the benefits of funds are also mentioned.

Why Do Businesses Need Investment?

Finances are an important part of the growth of every business from production to marketing. The following are the reasons those the investment is required for new or existing businesses: 

Capital for Start-ups and Expansion of Existing Business

To start the operations of a business the capital is required for day-to-day operations such as paying rent of office premises (if rented), salaries, bills, purchasing assets, software, etc. Additional capital is required to expand the business, whether it's opening offices in new locations, increasing production, or running marketing campaigns. So, for start-ups or expansion of business capital is required.

Research and Development

For research and development of new products, technologies and services, funds are required. This all can be fulfilled only by raising investment. To be in the competitive market businesses need to come up with new ideas for products, and services which lessen the work of consumers.

Equipment and Inventory

Businesses required equipment and inventory for production and to start business operations. This is an upfront cost for business and having funds available to cover these costs are much needed. Also, if an existing business is looking for investment then it can be for replacing outdated equipment and repairing damaged equipment and inventory.

6 Ways to Raise Money for Business in Singapore

Before you go in search of investment, having an understanding of different ways to raise funds will help. The following are the ways to raise money in Singapore:

1. Angel Investors

Angel investors are wealthy investors who invest in high-growth startups and businesses in exchange for equity. Also, provide valuable advice and mentorship for businesses. As per the expertise of the angel investors in Singapore, they can help you in making plans, fundraising, marketing, etc. So, having a well-defined business plan and a clear understanding of the market will help you to get better investments from angel investors.

2. Venture Capitalists

Venture capitalists are individuals who invest in early-stage companies to see their growth. By investing in a company, they hold the power to make decisions that can affect the company’s decisions. 

Usually, early-stage companies have their product or service to be launched. They just need funding to grow and expand their business. Mostly, venture capitalists invest in the portfolio of a company so that they can spread out the risk. They set a long-term investment horizon for the investment to mature. 

3. Growth Drivers

Growth drivers are the individuals or groups who increase the limit of the growth rate on which a company is growing. Typically they invest money into a company where the growth potential is higher and sometimes they invest in companies which are already doing well.

4. Crowdfunding

Crowdfunding is a way to raise funds for a business’s new project or venture through various people in small amounts. The complete process of crowdfunding is online and there are platforms such as FundeedHere, Kickstarter, Indiegogo, MoolahSense, etc. These platforms help businesses and individuals to raise funds without too much pitching. The benefits of crowdfunding are as follows: 

  • Best to raise money for a variety of projects.
  • Help you reach a wider audience than traditional fundraising methods.
  • A more efficient way to raise funds or collect donations from a large number of people.
  • Build a community of supporters for your project.

5. Bootstrapping

Bootstrapping is a business term which means financing a company or startup with its resources, such as personal savings, loans, or profits. This is in contrast to seeking external funding, such as venture capital or angel investment.

There are many advantages to bootstrapping a business. It gives the entrepreneur more control over the company, and it can be a more cost-effective way to start a business. Also, it can help the entrepreneur to build a stronger foundation for the business, as they will be more familiar with the operations and finances of the company.

6. Business Loan

A business loan is specially made for businesses with terms and conditions to help them grow better. It is a debt that a company takes on to finance its operations or expansion. Business loans can be obtained from banks, credit unions, and other financial institutions.

There are many different types of business loans, each with its own set of terms and conditions. Some of the most common types of business loans are term loans, lines of credit, invoice financing, microloans, and Small Business Administration loans.

Conclusion

Finding investors in Singapore can be tough but if found a way which suits your business will help. For example, for small businesses, crowdfunding can be a great option because it can raise funds in small amounts from different investors in Singapore as per the need.

If you want to incorporate a singapore company and get an issue with the application or documentation. So we at Registrationwala, can assist you to register the business in Singapore. 

 

People also read: 

How to Find an Investor for Your Business in Singapore?

  •  

 

 


1669 Views
  • Share This Post

Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

Want to know More ?

Related Posts

Subscribe
to our newsletter

Top