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Singapore Fintech Festival 2018 - The future of funding

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Did you attend Fintech Festival in Singapore this year? What a buzzing event it was! From international thought leaders to our local entrepreneurs, we had a blast learning about the fintech ecosystem and where it’s headed.

 

In particular, we loved the ‘Future Fintech Funding Model’ discussion on the last day of the conference – here’s a recap of the different ways you can access funding in Singapore.

Initial public offerings (IPO)

What is it?

IPO is a type of public offering where shares of a company are sold to institutional investors. An IPO is underwritten by one or more investment banks, who then arrange for the shares to be listed in stock exchanges.

Why choose IPO for your business?

With every company being different, Robert Lempka (CEO Ayondo) explained that the reason why he chose to take the IPO path was because of transparency and trust. He wanted to change public awareness and preferred a more me-to-me business path.

Equity crowdfunding

What is it?

Equity crowdfunding is the online offering of private company securities to a group of people for investments. By doing so, they become a part of the capital markets.

Why choose equity crowdfunding?

Laly David of OurCrowd explained that equity crowdfunding is open only to accredited investors globally, which is a fairly straightforward process. All an accredited investor has to do is log in and make an investment. Says David, “we report to investors every quarter because we want investors to feel comfortable and secure with their investments.”

Initial coin offerings - ICOs

What is it?

ICO is a type of funding that uses cryptocurrencies. Majority of the process is done by crowdfunding but today, private ICO’s are a very common option as well.

Why using ICO is a good option for your business?

Dr. Julian Hosp (TenX) believes that having transparency is the most important factor in your business. He emphasised on building a good relationship with his customers, which led to his company releasing a transparency report. He added, “For startups, instead of looking at your business quarter by quarter, have a long-term vision of up to 2-3 years ahead.”

Venture capital (VC)

What is VC?

Dr. Julian Hosp (TenX) believes that having transparency is the most important factor in your business. He emphasised on building a good relationship with his customers, which led to his company releasing a transparency report. He added, “For startups, instead of looking at your business quarter by quarter, have a long-term vision of up to 2-3 years ahead.”

With so many different types of fundings available now, where do VCs stand?

Brian Thung (Ernst & Young) explains that VCs are still a big player for funding in ASEAN countries. Many entrepreneurs starting up their business still prefer starting off with VC to get funding because it seems to have long-term potential growth and it is important to build credibility at the start first.

What is the most important tip when starting your own startup?

Having a clear and long-term plan for your business will be an added benefit. Being transparent with your investors and customers will take you a long way. Do bear in mind that the starting process might be hard and external affairs can make it longer but as long as you have a game plan, it does not matter if you take a while more to reach your goal. Brian Thung adds, “Focus on innovation.”

Conclusion

2018 has been such a successful year for fintech funding! Firms based in Singapore received  25% more funding in the first 10 months compared to the full year of 2017. With such outstanding results, we can see fintech funding looking bright in 2019!



[On the panel – Sophie Mathur (Partner & Global Co-head of Innovation Linklaters), Brian Thung (ASEAN Financial Services Managing Partner Ernst & Young LLP), Laly David (Partner, OurCrowd), Dr. Julian Hosp ( Co-Founder & President TenX), Robert Lempka (CEO Ayondo Ltd)]

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