Wednesday 4 February 2015

Showing Previous Funds Usage to Potential Investors



If you are on the lookout for finances to expand or start a business, whether from investors or in the form of loan, you need to know that any potential investor would first want to see the funds that you already have and how you are utilizing that money.

Potential investors would also like to see whether the entrepreneur seeking funds has contributed his own funds or not. In order to supply the investors with this information, you need to form a one page description, all the sources of existing funding, and how those funds are being utilized and for which business requirements.

You can send this information along with business plan or you can also send it with cover letter as a request for funding to the potential investors including angel investors like Singapore Innovation League.

The purpose behind this information is to let investors know that the business has a definite plan. It should be written in a way that conveys the message that the startup has clarity regarding, how it intends on using the funds. The description should clearly be able to state that you are not giving up equity or burying yourself funder debt thoughtlessly.

The statement and sources of fund will leave a good impression if you used it for expanding or starting business rather than offsetting previous debts.




If you are a newly launched tech startup or want to expand one, you can look for angel funding from Singapore Innovation League. The league is founded by Niraj Goel and others in Singapore and committed to fund around 500 new startups.


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