F. A. Q.
Questions
1. Choosing a VC Partner
2. Investments
3. Consultancy
4. Training
Answers
1. Choosing a VC Partner
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I want to bring my business to the next level of growth. How can Sirius help me?
Sirius adopts a holistic approach combining investing and consulting, to help entrepreneurs achieve greater success. We will assist you in every step of the way, from start-up to listing and beyond. As your partner, we aim to strengthen the three key elements that ensure business growth – your strategy, competence and capital.
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Why should I choose Sirius?
We treat our clients like Partners and work closely with you at every stage of your growth and development. Because we put our money where our work us, you can be assured that we have your interest at heart and are in it for the long-term. We believe in providing our Partners with truthful comments and evaluation of your businesses. We also have a strong team of “hands-on” committed professionals, with extensive experience and network. We are like a business doctor; we not only provide “consultancy” (i.e. strategic business advisory) but also disburse the correct amounts of “medicine” (i.e. capital) that your business needs.
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What role does Sirius play?
We are an active investor partner, with a long-term focus and attention to the growth needs of our Partners. We prefer to be the lead investor in our investments and may bring partner investors into our investment deals. Besides providing capital, we also serve on boards, link our Partners with our network of contacts, and help enhance our Partners’ business competency and strategies – all with the purpose of helping our Partners grow their businesses and realize their optimal value.
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How does Sirius compare with other larger venture capital firms?
Most large venture capitalists prefer to manage bigger-sized funds, which would in turn invest in bigger companies. Bigger VCs tend to gravitate towards later-stage deals that require more dollars. They may also prefer to place larger amounts of money into each investment, since they have to put in the same amount of work to invest say S$5 million, as it is to invest S$50 million. In addition, they oversee many companies in their investment portfolio, and may not have the time to work with small- and medium-sized companies which only need S$2 to S$3 million. Sirius, on the other hand, focuses on the investment opportunity first, and then designs a right fund size to target these investments. More importantly, Sirius believes that entrepreneurs sometimes need more coaching, rather than money. This is where we believe our value-added approach will be attractive to SMEs. |
2. Investments
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What kinds of companies does Sirius invest in?
We prefer to be the lead investor in our investments and keep a lookout for:
• Highly motivated and committed leader and management team
• Strong domain expertise and/or brand leadership
• Business models which focus on large profitable markets
• Sustainable advantages, including proprietary technologies or products or systems
We generally focus on industries with the following characteristics:
• Huge market with high growth
• High localisation requirements with global market potential
• Consumer-centric
• Attractive profit margins with high barriers to entry
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Why does Sirius choose to focus on small and medium-sized enterprises?
As an entrepreneur and SME ourselves, we understand the challenges and needs faced by SMEs. Equity investments in Singapore SMEs are few and far between. Most SMEs are not financed through equity but instead rely primarily on debt as their main source of financing. Sirius aims to fill the significant gap in the funding environment for SMEs. Given the large number of SMEs in Singapore, there is a huge market opportunity for us to generate attractive returns.
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At what stage of development does Sirius invest in?
We typically invest in early-stage companies, but we are also open to later-stage opportunities. Having said that, it is never too early to approach us. Besides direct investments, the Group manages two funds – the Sirius SME Growth Partners I Fund and Sirius Angel Fund. Sirius Angel Fund invests in high-growth, innovative and early-stage companies that are already generating sales. Sirius SME Growth Fund targets Singapore‐based SMEs at the growth and expansion stage, which have an operating track record of 5 years and above, with a net profit after tax of between S$1 million to S$5 million at the time of the Fund’s initial investment.
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What is the typical size of Sirius’ investments?
In the case of Sirius Angel Fund, the maximum investment amount is S$1 million for companies which have an operating history of less than 3 years. For companies with a 3- to 5-year track record, the maximum investment amount is S$2 million. The Sirius SME Growth Fund’s target investment size is S$2 million to S$3 million per investment.
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Does Sirius only invest in Singapore?
The key countries that we are interested in include Singapore, Japan, Indonesia, USA and China. |
3. Consultancy
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Why does my company need strategic business review and planning?
Planning is key to maximizing effectiveness and efficiency in any business operation. Without a proper plan, companies can easily lose direction and expend consideration efforts in overcoming business challenges. As your company grows and develops, it is necessary to review the relevance of your strategies and business plan, to cater to new markets and industry trends.
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Can Sirius help my company list?
The IPO process can be complex and commonly encounters tricky issues. As an experienced IPO consultant, we can help you manage your IPO journey so that you can continue concentrating on growing your business. Besides helping you to select an experienced support team of professionals and advisors, we will also partner you in developing your strategic growth plans, build up your board of directors, develop the prospectus, coach your management team, etc. Having said that, we believe listing is not the only way to create shareholders’ value, and will advise which is the best way for your company to realize your intrinsic value.
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What are some of the companies that Sirius has helped to list?
Examples of successful partnerships over the years include Ajisen (China) Holdings Limited (HKSE), Haike Chemical Group (UK AIM), Jackspeed Corporation Limited (SGX), Communications Design International Limited (SGX SESDAQ), and Grand Team Technologies Limited (Philips OTC). |
4. Training
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Why do I need to undergo coaching and training?
As an entrepreneur, you have the vision, motivation and drive. But you will also often encounter business and management issues which can distract you from your core business. Constant learning and improvement is also critical in today’s ever-changing business environment. As your coach and advisor, Sirius will help you develop your leadership competency, as well as upgrade your skills and knowledge.
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