One of the best resources available for startups in Singapore and Southeast Asia is Arnaud Bonzom and Florian Cornu’s Map of the Money. This maps out the funding ecosystem in the region helping founders find and approach the right investors. We’d recommend you check it out.
A few months back, Arnaud suggested to us that we create an accompanying tool which maps out funding terms that we see in the region. Happy to take up that challenge, we’ve developed the Simmonds Stewart Map of the Funding Terms. The tool tracks typical investment terms that we see on deals in the region. We hope it will help startup founders compare what is typical in the market when reviewing their own term sheets.
To use the tool, you just click on the relevant term and you can check out the position at each stage of fundraising – from angel funding to series C and beyond. We’ve deliberately kept the tool simple, avoiding lengthy explanations of all the jargon. This therefore assumes some knowledge of venture capital transactions and is best reviewed having checked out our guides and videos on raising capital in Southeast Asia.
The information set out in the Map of the Funding Terms is based on the experience of our VC lawyers. We’re on target to advise on 50 Southeast Asia financing deals in 2018, up from 30 in 2017 – ranging from small seed investments to significant series B and C financing rounds. This deal flow gives us great market knowledge of funding terms used on deals in the region. However, every deal is different, and where you end up often depends on how strong your negotiating position is (e.g. if you have term sheets from more than one investor).
We will review the Map of the Funding Terms regularly as new investment trends emerge. So just like the Map of the Money, this is v1.0, with updates to follow.
So if you are about to raise capital or already have a term sheet in front of you, check out the Map of the Funding Terms and please let us have feedback.