Fund Raising SGFI 4 - Jeffrey Paine

8/3/2019 Fund Raising SGFI 4 - Jeffrey Paine

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Fund Raising in Singapore

Jeffrey Paine/Battle Ventures Founder Institute

/ Pyrks2012



REALITYPREPARATIONPROCESS

Agenda



REALITY



Exceptional Outcomes

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Bad News

• Very few seed stage investors in Singapore know what they are doing

• /Follow on financing for Series A B is

lacking in Singapore• < -8 firms do $1 3M rounds often

enough – , , , , , Walden Vertex Exstream Jafco IIPL

Singtel Innov8• Need to go out of Singapore or need

to make do with $800k organically



What are investors like inSG?

• Very few are founders or operators• ,Many who are have retired more than 5

years ago

• New entrants may not understand Asian Region enough

• May only invest in something they understand or when most risks are

removed

• (Some are dumb as hell refer to. ), ’ ’TheFunded com don t fault them we don t

;)have Angel Institute yet but money

is money –



Result

• Not enough well versed sophisticated investors who can value add

• Wrong or bad advice

• No further aid in follow on funding( / )Series A B

• Poor roll up your sleeves types

•

“ ”Slippery slope to Living Dead



Good News

• ( ~Lots of funds in 2012 iJAM 2 $5M in, ~grants over 2 years NRF TIS $20M

)in 2012

•

Founder Institute is one of a few entities who can help you raise,external financing we are

affiliated with a few funding

initiatives• Growth of new entrepreneurs based in

=Singapore is slowing down competition is scarce



What do I look for?

• Founding team – , &Likeable coachable know why they are

doing what they do – Oozing leadership – Able to execute (in chaos get things

)done• Market

– ,Not small not too big – Revenue roadmap

•

Product – Launched with learning points( )humbleness

– Knows what to do next to capture<>opportunity Product Roadmap

–



TRACTION

PRODUCTTEAM



Traction

• Traction shuts people up• -Markets are efficient individuals

cannot predict traction•

Amount varies by product

• Know your microeconomics• Be mindful of vanity traction metrics• ’ ,f you can t generate traction do

ou really want to raise money?• % %How much is enough? 10 per month? 20 ?



Product?

• “ ” We will disclose more under NDA

• “I am raising money to build the”product

• “ ”Launching next month

• “ ”Building second version now



Exceptional Product



Product Guidelines

• /No promises vision

• ,Show not tell

• ,Quantitative and precise not

qualitative and vague• Something hard with specific

knowledge

•

Expect competition• . ’ ,Build only the best And if you can t

’ *you re not ready



PREPARATION



Preparation

• Mental

• Overall

•

Documents



Mental

• Always be raising• Time is always not enough• It is a sales campaign• Daunting• Frustrating• Time consuming

> / -100 pax | 20 hrs wk | 3 9 mths• You will think of giving up



Overall

• Product launched with traction(> % ) -20 per month aka Product

Market Fit

• At least 2 fulltime founders• -Big market with somewhat clear go

“to market and how do you make

”money strategies• “ ”Be careful of Living Dead path

•



Documents

• Incorporated entity with capitalizationtable

• (> )Financial Forecast $10m after 3 years

•

/Prototype Demo

• -1 page executive summary

• -10 15 page investor deck

• Reference list

•

• Product roadmap

• , ,Legal employment financial contracts

• Management accounts



PROCESS



Process

3 to 9 months



Process

• -Pre pitch• The Pitch• Prelim Due Diligence

• - ( , )Follow on meeting sometimes visit• Partnership meeting• Term Sheet• Diligence• Close



One Goal

• ind the lead investor

• They are your lead investor because

– /They like you team – They believe your business is a sure

thing – They feel they can add value in

scaling up

–

• You want to tart early – Seed funding is a people business



What are investors for?

• <->Pattern Matching Applied Data – Network

– Experience

–

• Nice People to work with



Quest to a Lead

• & ( - ) ,A B Target List 60 100 from Crunchbase, ,Angellist Linkedin TheFunded

• Research them

• / /Meet with me mentors grads to run through pitch/deck forecast

• onnect with them through introductions/ .hrough friends portfolio founders No

.old email

• : ,Slow dance Meet them to get advice send progressemails

• - , -Then start with a 4 week sprint get 15 25 meetings or calls per week

• -Start with B List investors to learn your mistakes and improve your pitch



Quest to a Lead

• -Average between 3 5 meetings before asking someone to lead

• ,Once lead investor has agreed

finalize terms

• Email all interested investors and“ ”start to circle them

– ( % )Soft Circle 50 will close –

( % )Hard Circle 75 will close• Create sense of urgency with a

CLOSING DATE



Quest to a Lead

• ,After lead investor is secured then – Pitch at public investor

/ ( . . ,events conferences e g BANSEA.)TechVenture etc

– ,Sign up on FounderAngels Angellist and Startuplist



Tips

• ( ,Advisory Round Notable Founder)Operator who value adds

• ,Cast a Broad Net move simultaneously•

:Your Goal Get to the Next Meeting• Fish out a firm No than a muddled Yes• Easier to pitch a new investor than

to convert one

• ( ),Equity priced round not convertibledebt• PR helps



Tips

• (Do not take just any meeting be aware of junior people and potential

“ ”)competitor lurkers

•

Best pitch is a discussion• ’ ,Don t lie be humble

• Leverage your network

•

’ , -But if you re having a hard time re

, ’ ( :start don t push Magic Number 10’ )No s



SOURCES OF CAPITAL INSINGAPORE



Capital Sources in Singapore

• , &Friends Colleagues Family• , ,Employees Partners Suppliers

• ( , , ,Government Grants MDA IDA SPRING

, …)ACE STB• ( )Angels BANSEA

• ( ,Seed Funds Govt backed Privately

)managed

• Venture Capital Firms



Government Grants

• ~ - ( : < )MDA iJAM $50 250k 1 1 100k – : , , ,iJAM1 Athena Azione Expara

, , , ,FrontEdge NUS NTU SITF Thymos

–

: , , ,iJAM 2 Kyosei FatFish Quest Battle ?

• ( ) :ACE Startups fka YesStartup 1 3~$38k

• – /SPRING Singapore TECS POC POV

~ -$250k 1M• ( , .)Others STB MCYS etc



Angels

-Typically $25 50k checks• A Listers

•

B Listers• Operate with herd mentality



Seed Funds

• ~NRF TIS Funds $588k – : ( , ,1 1 Exstream Ventures Walden 3V

)SourceOne – : ( , , ,15 85 Neoteny Stream Global Innosight

, ,PlugandPlay Social Slingshot, , .)SmallWorld Techcub8 etc

– 20? new funds in 2012

• ( : ) ~ -Spring SEEDS Capital 1 1 Equity $300500k

–

, , - ,BAF Spectrum Sirius Capital Accel X…Imprimatur Capital• / ~Gobi MDA China Fund $500k• , ,East Ventures Jungle Ventures Mercatus

, … ~Capital Quest VC under $1M



What should you do?

• <->Idea Prototype – ( + :MDA iJAM Grant $50k $100 100k

)Matching

–

(~ )ACE Startups Grant $38k

– & , (F F Angels Spring Seeds Matching: )1 1

• <-> /Launched Some traction w growth

– & ,F F angels – NRF TIS incubator funds

– Other seed funds

: Overseas

Angellist Founder Angels Accelerators

( . ) 500 co

: >otal Average Amount Possible $800k



Investor Warning Signs

• Terms that set up future conflicts of interest

• Insistence of c o n t r o l of either

, .stock board seats etc• Insistence of a business model

substantially different from

yours



In Summary

•

Get to know investors early without pitching• Ask for advice not money

• .Sell them dreams not a product How does your product affect the lives of your customers?

•

Execute and launch as best and fast as you can

• Get customer validation and traction quick

• Raise on at least one exceptional characteristic( )likely product or traction

• <>Get to know SF Bay Area mecca of funding over

( ’ )time SG isn t a funding hub sorry• -PS Assume fierce competition

• – .PPS Keep hustling No Asshole Rule Applies



Finally

’It won t seem like it while you are,doing it fund raising is probably the

…easiest part of running your company

•

!Enjoy



The Golden Circle

ACKING THE INVESTOR

:// . . / / / / // /http www ted com talks view lang en id 848

http://www.ted.com/talks/view/lang/en//id/848



Fund Raising SGFI 4 - Jeffrey Paine

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