BLOG

2020 half year capital raising numbers

Logo_white

share:

Our capital raising lawyers in Singapore have had a busy first half of 2020, even as Covid-19 impacts globally on fundraising. As at end of July, we had 42 fundraisings by Southeast Asian companies, slightly above where we were at the same point last year.

Our numbers (compared with previous years) implies that startup financing, particularly in Asia, has remained pretty resilient. The availability of capital in Southeast Asia, with the particularly vibrant VC scene in Singapore, has ensured financings have ticked over during lockdowns.

It is fair to say that we have seen more bridge financings amongst existing clients than normal, compared to fundraising for new companies. As investors look to support existing portfolio companies over the next few difficult months, many companies have had to change their investment strategy. Venture debt may play an increased role alongside traditional equity financing in more deals we see going forward. Thankfully, to date, we’ve not seen many down rounds, but these could increase over the next 12 months unless founders can find alternative financing structures.

There’s a lot of discussion in the market about how the pandemic has changed the investment landscape, with deals being pulled or delayed. Fortunately, we’ve not seen too much evidence of that in the tech space so far. Deals are taking slightly longer however, and we expect more investor friendly terms to appear.

Stay tuned – we’ll be keeping a close watch to see how fundraisings in tech companies in our key markets continue to look over the rest of 2020.

explore our other blog posts

post-money convertible notes

Back in 2018, Y-Combinator (YC) updated their core investment instrument and launched what is now known as the post-money SAFE. We analysed the post-money SAFE back in 2020 – see our blog here https://kindrik.co.nz/blogs/a-primer-on-post-money-safes-in-new-zealand/. The main difference between a pre-money and post-money SAFE is that, on conversion, under the pre-money…

Updated Singapore model VC documents

The template documents used in the venture capital ecosystem across Southeast Asia have been updated. Launched by the Singapore Academy of Law and the Singapore Venture & Private Capital Association in 2018, the new VIMA 2.0 documents are available for free to help start-ups. 8 new documents have been added…

kindrik newsletter