You are here

A guide to venture capital

As more Singaporean startups emerge, they attract investors hungry for returns in the current low interest rate environment. Venture capital funds are important in the startup ecosystem as they invest in risky ideas.

Without a reliable stream of cash flow or assets to pledge as collateral, many startups are unable to access borrowings from banks. Investors provide venture financing, facilitating further growth in the companies and perpetuating a positive feedback cycle.

ACCORDING to the Singapore Venture Capital and Private Equity Association (SVCA), venture capital for technology-related startups in Singapore has risen sharply from US$27.9 million in 2011, to US$1.71 billion in 2013.

This represents a staggering sixty-fold increase.

Within South-...

Market voices on: