[Article from Channelnewsasia] Excerpt:
Mr ((Christopher) Quek noted that there remains funding capital, especially for start-ups in the pre-series A stage, with venture capitalists focused on a few considerations. These include a burn rate which has to last 30 months, up from 18-24 months, as well as a path to profitability.
Burn rate refers to the rate at which new start-ups are spending its venture capital to finance spending before generating its own profits.
“No longer do VCs allow growth with no profits in sight. There is a clear focus on back to basics to ensure the start-up is making money as it grows,” he said.
“There is also a need for clarity on the exit strategy. Too often, start-ups focus on the potential of the business that they forget about the investors’ requirement of getting a return.”
Image Copyright: Tang See Kit, Channelnewsasia