Start-ups raising VC funds face irony

Press and Media   |   
Published October 15, 2013   |   

RAISING money has become more challenging now given the current uncertain climate in global financial markets, said Suresh Shankar, founder and director of Singapore-based data analytics start-up Crayon Data, in an interview with The Business Times.
But at the same time, he said, there is an excess of money everywhere and everyone is looking for good investment opportunities.
“For start-ups seeking to raise venture capital funds, they should remember that the basics have not changed. Venture capitalists (VCs) are looking for exactly the same things they have always been looking for: a business that will have an impact on the industry and generate high returns for everyone.”
Said the man whose data analytics start-up raised $1.75 million in excess in its second round of fund-raising in early September: “VCs want the business to succeed and break into the big time. While they like steady returns, they really want the ‘big winners’ – the ones that will give them a ten-times return. That’s how they make their money.” [Read More]