Fundnel Knowledge Centre


Back to main

Businesses

Helpful advice for businesses to raise funds through Fundnel

Knowledge Centre

As a registered business on Fundnel, a variety of fundraising options are available to you. Their suitability is dependent on your type of business, stage of company development, and end-goal requirements. Below explains the features and merits of each fundraising model:

Equity
Merits
  • Receive long-term funding from investors with no fixed time frame to return the principal amount of investment
  • No ongoing interest rate
Features
  • Increase the number of shareholders in exchange for investment
  • Issue voting / information rights to all investors
  • Shares usually carry an entitlement to dividends if and when declared
Convertible Bond

Merits
  • Ability to price the share at a premium compared to pure stock sale
  • Lower interest rate as compared to pure bonds as in some cases, it can be a zero-coupon CB
  • Flexibility to structure the CB based on maturity period, conversion premium etc, to achieve desired objectives of business owners
Features
  • Delayed dilution of existing shareholders
  • Interests payments to be made to investors at a pre-determined interval
  • Interest will typically be added to the value of convertible bond before conversion
Bonds / Debt Structures (incl. Loans)

Merits
  • No dilution to existing shareholders
Features
  • Interests payments to be made to investors at a pre-determined interval, typically every six months
  • Principal has to be repaid to investors upon maturity of the bonds
  • Financial covenants may be applicable

Revenue Sharing
Business owners agree to share a percentage of its gross revenue with investors

Merits
  • No dilution to existing shareholders
  • Flexible payments as a proportion of revenue
  • Flexibility to cap the return to investors to either; a predetermined "investment multiple" on their investment is achieved, or a predefined duration in accordance with its associated terms (e.g. after a certain time frame)
Features
  • A strong admin process is required to track and fulfil pre-determined regular pay-outs

Explained by:
Low Wen Chun Head of Investments

Was this answer helpful?

Yes No

8 out of 8 people found this answer helpful

Fundnel is designed for

  • Early-stage businesses as well as mature companies raising funds from the pre-series A, Series-A funding, subsequent growth capital rounds all the way to pre-IPO financing
  • Small and medium businesses (brick and mortar) looking to raise money for expansion
Our platform does not cater to idea stage (concept-only) companies at this time.

For the sake of clarity, we do not offer a route to "easy" money, but instead, the more efficient alternative to the tough task of fundraising for your company.

Explained by:
Justin Chow Co-Founder & CMO

Was this answer helpful?

Yes No

6 out of 6 people found this answer helpful

To get started, simply create a profile as a registered user, and submit your application right away through our online interface. You should have some basic company information on hand, including incorporation details, business registration numbers, financial performance etc.


Explained by:
Low Wen Chun Head of Investments

Was this answer helpful?

Yes No

5 out of 6 people found this answer helpful

Typical deals span 2 to 3 months. Even then, business owners have the flexibility of closing their deals at any pre-set date or when the 100% of the fundraising goal is reached, whichever takes place first.
Explained by:
Low Wen Chun Head of Investments

Was this answer helpful?

Yes No

4 out of 4 people found this answer helpful

Upon submission, we will process your application by putting it through our rigorous vetting process, which may include gauging early anchor-investor feedback. Deals will be listed ‘live’ on our site if they are successful and satisfy our vetting process; or we may contact you (within 5-10 working days of your submission) for more details to continue the process.

Read "The Fundnel Factor" and "What does Fundnel do" for more details

Explained by:
Justin Chow Co-Founder & CMO

Was this answer helpful?

Yes No

3 out of 3 people found this answer helpful

We will review your application based on following criterion:

  • Positive early feedback from our current network of experienced investors
  • Complete standard financial and legal data
Read "The Fundnel Factor" and "What does Fundnel do" for more details

Explained by:
Low Wen Chun Head of Investments

Was this answer helpful?

Yes No

2 out of 4 people found this answer helpful

Companies are responsible for engaging legal counsel to assist them with the preparation of all relevant legal documents (such as subscription / purchase agreements). We recommend engaging your legal counsel as early as possible.
Explained by:
WanHsi Yeong General Counsel & Compliance Officer

Was this answer helpful?

Yes No

3 out of 3 people found this answer helpful

Deals sometimes fall short of their stated funding goal. In the case of Threshold Investments ("all or nothing"), all funds raised will be returned to the investors, whereas in the case of Direct Investments ("best effort"), businesses will be able to gain access to any funds raised at the conclusion of the fundraising duration.
Explained by:
Khai Lin Sng Co-Founder & CFO

Was this answer helpful?

Yes No

3 out of 3 people found this answer helpful

If more than 100% funding is achieved, the company will have the option of triggering an upsize option; if not, allocation will be based on pro-rata basis or selective basis+ (your company will retain full autonomy in this decision).

+ The funding size will be fixed at base deal size (or at the upsize deal size) and you will have the discretion to allocate the equity / convertible bonds / bonds / revenue sharing agreements to specific investors.



Explained by:
Khai Lin Sng Co-Founder & CFO

Was this answer helpful?

Yes No

5 out of 5 people found this answer helpful

Fundnel charges a 5% success-based fee of total funds raised from your deal.

Upon engaging us, we will run a thorough due diligence process to validate your product to investors, whilst listing your deal on our platform and all our proprietary channels, online and offline. As a business owner, you will receive one-on-one coaching with our business development, investment and marketing teams to prepare your management team for fundraising, which will include regular investor meetings.

Fundnel will also assist you with the preparation of all deal documents and investment teasers to facilitate incoming investments, freeing up your time to continue running your business and maintaining business performance during the fund raising process.

In certain cases, a monthly project retainer fee might be required to cover the costs of engagement of external professional parties.

Explained by:
Low Wen Chun Head of Investments

Was this answer helpful?

Yes No

7 out of 8 people found this answer helpful


Still can’t find what you’re looking for?

You know what, we could still be in the midst of writing it.