Jimmy Hsu of TIF Ventures has written an introduction to Singapore's VC scene. Snippets:
Over the last few years, we have increasingly seen companies targeting new markets such as China and India, although the United States does remain the ultimate primary market for most startups. We've also seen an increasing role for top-tier fund managers to help their portfolio expand into these new markets. In the next few years, VCs will want to invest in companies based abroad that have synergistic and value-adding characteristics or have first-mover advantage. VCs will start to have a broader geographic view and invest more globally.
We have already started to see an upturn in the VC industry, both in terms of fund managers raising funds and the dollar amounts into investments made. This has followed the improvement in the local public markets, which in turn have trailed the U.S. public markets. Thus, there is a lag effect but clear signs of improvement. We think convergence technologies, digital TV, media and the biotechnology/healthcare sectors will be ripe for investment over the next few years.
To raise capital in the near future, entrepreneurs will need to balance their presentations and business plans toward financial investors instead of merely focusing on the innovation and technology. Meanwhile, local VCs will need to form meaningful syndicates with overseas firms that can help them move beyond the local markets.
Comments