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Entrepworld

Lex Na - Funding Strategy For Today's Economy

Written on 04/27/2018
Athirah Syamimi

In every startup, getting funding for your business is one of the most crucial and difficult tasks to do. Unless you're a billionaire with millions to throw in your idea, you probably have to look into convincing people to put money into your work. Traditionally, startup founders will pitch to angel investors and venture capitalists to get them to invest huge amounts into their business. Funding can consist of series A, series B, seed round, etc.

However, there's a relatively new fundraising mechanism that has been growing on and is increasing in popularity- Initial Coin Offering (ICO).

Read more: Differences between IPO and ICO

Here's an interview with Lex Na (CEO of Bountie Technologies) regarding the challenges he and his team faced in raising ICO for Bountie.



What's the key factor for someone when deciding to put money into your business?

No one wants to be putting in the first dollar or taking the risk. That’s what I've learnt from fundraising. As long as you can reduce or minimise that, you will increase your chances of a successful fundraising significantly.

Normally, founders would pitch their ideas to venture capitals and investors. Is that the same case for ICO?

For an ICO, there are 3 kinds of investors - friends and family, early investors and angels, the rest of the crowd.

How should someone approach these 3 groups with the different backgrounds?

Firstly, you should always reach out to your friends and family. These are people who have known you for years, know your capabilities and are willing to support you, even if it’s just for friendship or kinship. Get this small pot of gold and work towards something that will increase the odds for the next level of investors to buy in.

The second group of investor is the hardest but if you're successful, you’ll have no issues fundraising the rest. From the early investors and angels’ standpoint, they want to know a few things such as the sacrifices the founders have made, amount of (including network) money you and your network have put in, and your business's proof of concept.

There are more factors but these are the main ones that they want to see before you even get a serious consideration. Don’t be surprised when they do in-depth background checks and due diligence. That’s when the tiniest cracks get magnified under the microscope and deals that seem confirmed goes south within a flash.

The last group is the easiest, all the work required have been done beforehand and these investors just flood in with the herd mentality. This is a very common behaviour that we can observe in many other areas of life. 

This article first appeared on StartUUp Asia. 


Bountie Technologies is a gaming technology company based in Singapore that is creating a platform for gamers in Asia to make a living while playing their favourite games. You can follow Bountie on Facebook, Instagram and Twitter.

Athirah Syamimi is a personal development enthusiast and entrepreneur. Having trouble finding her niche, Athirah reverts to her purpose - to help people turn their dreams into a reality. Hence, creating EntrepWorld. Recently started getting involved in cryptocurrency and blockchain. 

To follow Athirah, you can visit her InstagramTwitterFacebook and LinkedIn.