Founded just last year, VentureCap Insights has already become a game changer when it comes to accurately determining trends in the startup landscape.
Check out our interview with the founder himself, Jason Edwards, to learn more about the inspiration behind VentureCap Insights, and how it helps foster stronger relationships between entrepreneurs and investors!
Which investor’s portfolio should startup founders look into? What sectors are these investors even interested in? What should this company’s valuation be?
These are some questions that VentureCap Insights founder Jason Edwards helps startups and investors find answers to by establishing VentureCap Insights. It already boasts esteemed subscribers such as Temasek and Deloitte, and has been deemed the “Bloomberg of startups” despite being a relatively young enterprise. With its extensive database – comprising information on all startups and more than 5000 investors, VentureCap Insights promises accuracy for startup founders and investors alike.
While web crawlers such as Crunchbase and Pitchbook merely rely on media releases, VentureCap Insights’ information is supported by government company registries.
“Web crawlers use bots to hunt for major releases, and the problem with that is most companies don’t do a major release when they raise money,” explained Jason. “But because VentureCap Insights draws on data from registries like Singapore Accounting and Corporate Regulatory Authority (ACRA) and the Companies Commission of Malaysia (SSM), our data is, by law, always accurate.”
Jason is well aware of the challenges posed by inaccurate information in the startup landscape, having been a venture capitalist (VC) himself years prior to founding VentureCap Insights.
“Before VentureCap, it was a black hole. No one really knew what was really being raised, who specifically was investing, or what was the valuation [of companies]”, he said. “That shouldn’t be the case because we always need transparency to improve markets.”
Finding the right partners
It is crucial that startups zero in on potential investors who can provide the most and best support for their service before setting their sights on obtaining funding.
“People don’t realise how many investors there are,” noted Jason. “That includes angel investors, corporate venture capital, venture capital, strategics, and many more. As a founder, the first thing you want to do is come up with the complete list of investors who may be interested.”
This is where VentureCap Insights’ comprehensive repository of historical marketplace valuations and investments comes into play.
“We have every single investor who’s ever invested in the startup – even angels, as well as the details of every single investment they have made – down to the exact amount they’ve invested at every company at every round,” said Jason. By sifting through VentureCap Insights’ database first, startup founders can easily identify investors who might be of relevance and focus their efforts on earning their support.
Crunching the numbers
Getting a first meeting with potential investors might be a miracle for some, but it is this meeting that makes or breaks.
“VCs need to be efficient when it comes to meeting startups: they make decisions within the first interview because the team might be seeing a thousand people or decks per quarter. So one has to demonstrate to investors that their enterprise is worth spending more time on in order to be offered a second meeting,” Jason explained. “You have to convince them that your venture is better than the 99 other companies that they’re seeing that month.”
In this respect, the impressive amount of data amassed by VentureCap Insights comes in handy. Its database also contains details of startups: company valuations at every funding round, revenue figures, to name a few. These factors play a vital role in helping aspiring entrepreneurs present relevant figures during their first meeting with VCs.
Startup founders’ ability to accurately determine their numbers are critical in demonstrating their capability in driving their business forward.
“You’re coming to a VC, asking them to give money to a loss making business for many years in the hopes that you will get that back with a substantial return. So you need to impress upon the VCs that you have a clear exit strategy and can sell this company within a reasonable timeframe,” said Jason.
While VentureCap Insights’ services are beneficial in helping to create compatible relationships between startup founders and investors, aspiring entrepreneurs need to know more than just numbers and figures.
On that note, Jason believes that humility is key: indeed, it is essential that founders demonstrate their confidence in growing a business, hiring and retaining employees, and beating the competition. “But at the end of the day, they need to always be open to new ideas,” said Jason.