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According to Investopedia, Venture Capitalists (VCs) are investors who provide capital to support small companies or to aid startup ventures. They strategically invest on businesses that will generate significant profit and experience extensive growth.

When you craft a business model or proposal, obtaining a VC backing shall be on your mind.

USING TWO STRATEGIES

1. By Giving A Robust Presentation

You are on a mission to market your business’ ideas and full potential by giving a robust presentation. A robust case study presentation must contain all the possible challenges that can arise and how to address them. Modify this presentation as you go along to reach a level of satisfaction that will impress your investors.

2. By Offering A Timely Opportunity

The truth is, investors take the leap of faith once they allocate their wealth on a startup or a small business. VCs must brave the overwhelming risks of getting relatively slimmer rewards than investing on established companies. This is why most VCs are cautious. They cannot afford to bet it all on opportunities that will not have large payoffs.

Attract the VCs by offering a timely opportunity. Large payoffs can occur if the market recognizes that there is an existing demand for your product or service. Dwell upon this.

Image Credits: pixabay.com

VENTURE CAPITALIST FIRMS IN THE LOCAL SCENE

More and more venture capitalist firms (VCF) have entered the shores of Singapore in the recent years. Exhaust your resources to familiarize yourself with the available firms, which are in lined with what your company represents. Let me help you by enumerating five VCF that have marked their presence last year.

a. FAR EAST VENTURES (Far East Organization’s investment arm)

b. 500 STARTUPS (a seed fund and startup accelerator)

c. SPH MEDIA FUND (Singapore Press Holdings’s investment arm)

d. HATCHER (focuses on B2B startups)

e. DMP (focuses on emerging digital markets)

Once you narrowed down your options into a realistic list of VCF, you must aim to impress them with your innovative idea. Start by pouring your effort into these five crucial points:

a. It is necessary to have an irresistible niche, competitive edge, or unique selling proposition.

b. You must stress on your business’ ability to produce huge profit margins.

c. It is important to exude a significant potential to grow.

d. You shall display legitimate barriers to competition such as having a patent or copyright.

e. It is highly advantageous to have a current demand for your service or product.

Image Credits: pixabay.com

Is your business proposal sufficient to fulfill these crucial points?

Good for you!

If so, I wish you all the best in your upcoming endeavors.

Sources: 1 & 2

Each year, hundreds of tax deductions and credits may go unclaimed due to the lack of taxing knowledge. To prevent that, here are 5 Tax Deductibles You Need To Know based on the Inland Revenue Authority of Singapore.

FOR THE EMPLOYEE

1. EMPLOYMENT EXPENSES

A good news for all employees—employment expenses can be claimed as long as they satisfy these three conditions:

a. Expenses are sustained when carrying out official duties.
b. Expenses are not reimbursed by the employer.
c. Expenses are not private in nature.

For instance, traveling expenses on public transportation that are not reimbursed by the company may be deducted from the tax. Also, entertainment expenses that occurred while pleasing the clients may be deducted from the tax.

FOR THE EMPLOYER

2. STARTUP TAX EXEMPTION (SUTE)

A start-up company, have enough financial worries in your plate. What should you do then?

Take on the SUTE. Suited by SUTE, a start-up company that meets the required conditions can claim for full tax exemption on the first S$100, 000 of normal chargeable income for each of its first three consecutive years.

3. CORPORATE TAX INCOME REBATE (CTIR)

Since 2013, all Singapore companies are eligible to take on the CTIR. No! There is no catch. This scheme aims to help companies to cope with the rising costs in businesses. Suited by CTIR, companies will receive 30% rebate or up to S$30, 000 off the tax bill from 2013-2015.

OTHERS

4. ANGEL INVESTORS TAX DEDUCTION SCHEME

Be an angel, invest in start-up companies in Singapore to receive a huge tax benefit from the Angel Investors Tax Deduction Scheme.

Enjoy 50% tax deduction on the investment costs at the end of a two-year holding period. This is up to S$500, 000 of investments in each Year of Assessment. Investments made from March 1, 2010 until March 31, 2015 are eligible for this scheme.

5. DONATIONS

Want to double your tax deduction? Be generous and donate in all forms. The following types of donations will qualify you for a double tax deduction (twice the amount of the donation):

a. Cash Donations
b. Shares Donations
c. Computer Donations
d. Artefact Donations
e. Public Art Tax Incentive Scheme
f. Land and Building Donations

For instance, a donation to the Singapore museums that have obtained the Approved Museum Status with the National Heritage Board is tax deductible.

Image Credits: TaxCredits.net via Flickr

Equipped with these tax deduction knowledge, prepare to be impressed with your managed taxes now!

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