A short overview on startup funding in Singapore

1. Finding Money for Startups in Singapore
Dr. Virginia Cha
Chief, Research and Innovation, Institute of Systems Science, NUS
Adjunct Professor, Science Entrepreneurship, INSEAD
Entrepreneur‐in‐Residence, INSEAD
Entrepreneur‐in‐Residence, SMU
Entrepreneur in Residence SMU
Executive Advisor, NUS Entrepreneurship Centre
Member of the Global Agenda Council on Fostering Entrepreneurship 2012‐2014, World Economic Forum
October 2012

2. Entrepreneurial Ecosystem
p y
• Entrepreneurs and Ideas
1. Ideas & Opportunities
2.
2 Passion & Commitment
3. Strategy & Pivots
4. Go to Market
• I
Investors and Money
t dM
1. Angel Investors
2. Incubators
3. Venture Capital
4. Corporate Venture Capital
5. Corporate Investor
• Government and Economic Development
1. Funding startups
2.
2 Industry development
3. Policies, incentives, and investments

3. Singapore Funding Map
(from Bootstrap to Seed Stage)
(f d )
Source of graphics: Wong Meng Weng (JFDI Asia).

4. Singapore Funding Map
Singapore Funding Map
(Early Stage)
Source of graphics: Wong Meng Weng (JFDI Asia).

5. Singapore Funding Map (Growth/Late Stage)
Si F di M (G th/L t St )
Source of graphics: Wong Meng Weng (JFDI Asia).

6. Angels
ge s
1. Not typically formally organized, but this is also changing
2. Short investment process: 1-2 months, starts off innocently
3. Typically invests at idea stage, no revenue, prototype stage
4. Looks at
oo s at:
• Passion (self) and Projects
• People/team/Chemistry
• Motivated by desire to be engaged in entrepreneurship
4. Helps entrepreneurs with:
• Corporate Partners/Lead Customers
• Strategy/Operations management
• Sympathetic ear/positive support
• Credibility
• Introduction and Sourcing of VC

7. SG’s Seed/Angel Investors
Accel‐X
•SPRING SEEDS – 1‐for‐1 to qualified angels
S G ( i l d)
•SPRING BAF (Business Angel Funds)
Image source: respective company’s website
7

8. Incubators
1. Typically organized and funded by government or quasi-gov, or
associated with a university/research entity or a group of investors
2. Investment process: 3 months, models after the VC process, but less
stringent
3.
3 Bridges the gap between idea/prototype and revenue stage
4. Looks at:
• Idea, Opportunity, IP
• People/team/fit to incubator mission
• Motivated by KPI with building new businesses/value
4.
4 Helps entrepreneurs with:
• Corporate Partners/Lead Customers
• Team Building/Rent/Lab
• Credibility
• Introduction and Sourcing of VC

9. SG’s NRF TIS Incubators
I2G Tech Accelerator
Image source: respective company’s website
9

10. Venture Capitalists
1. Organized as formal investment funds into new ventures
2.
2 Long investment process: 3-6 months (in SG; in USA faster)
36
3. Typically invests in prototype stage, or beta launch, sometimes
pre-revenue (but in SG, VCs require much more validation)
4. Looks at:
• Sector/Industry/’space’
• pp y
Opportunity/Idea/IP
• People/team/track record
• Valuation
4. Helps entrepreneurs with:
• Capital/Credibility
• Executive team recruitment
• Strategy/financial management/Exit

11. SG’s Active VCs

12. Corporate Investors
1. Corporate strategic investor – direct equity investment
2.
2 Long investment process: 4-6 months
46
3. Typically invests in revenue or beta-stage
4. Looks at:
• Sector/Industry/’space’
• Complementary to own products/services
• People/team/track record
• Profit/Loss
4. Helps entrepreneurs with:
• Capital/Credibility
• Corporate Partners/Lead Customers
• Revenue
5. Generally looks towards eventually a full acquisition

13. Corporate Venture Fund Investors
1. Corporate strategic investor – corporate venture fund investment
2.
2 Medium investment process: 3-4 months
34
3. Typically invests in prototype or beta-stage
4. Similar characteristics as Corporate Direct Investor except:
a. Behaves more like a VC, looks at returns
b. Does not make a full acquisition

14. Entrepreneurship
Ecosystems in Asia
http://techcocktail.com/asian‐startup‐
p // / p
scene‐2012‐03#.T3EWaGHzuSp