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How to Get Fundraising from CVCs in Asia

Increasingly, Asia has become an incredible powerhouse for investing and innovation alike. CVCs are on the rise. Equally importantly, many areas of Asia are still developing their full position on the market.

While China remains a major manufacturing hub, areas like India are seeing a steady increase in both investment opportunities and investors. As a result, looking for funding from Asian CVCs may look a little different than it does in the rest of the world. 

1. Put together a strong pitch that reflects the values of these Asian CVCs.

In order to secure funding from a CVC, you need a strong pitch that will let the CVC know, not just what's in it for you, but what's in it for them. As an entrepreneur, you want to paint your business in the best possible light to ensure that the CVC wants to invest in your business. Include:

Carefully craft a pitch that describes how investing in your business will benefit the CVC, helping it expand its reach and meet its goals. Keep in mind that ultimately, CVCs are hoping to see a strong return on their investment. You need to position your business as a tool they want to utilize to meet their goals.

Carefully consider the values of Asian CVCs, which may focus on overall socioeconomic prosperity and social harmony, unlike brands and companies in other parts of the world, which may focus more on personal gain for the members.

2. Consider more than just money when approaching a CVC.

Often, when you approach a CVC, you're thinking about the money you can gain from your efforts. Equally important, however, are the other tools the CVC can offer you. As you consider your pitch and approach, carefully evaluate the other attributes the CVC may contribute to your startup.

For example:

CVCs can provide an affiliation with their brand. Being affiliated with a specific brand may substantially increase public opinion of your business. Choose to approach a CVC that will offer advancement opportunities for your brand. 

Acquire knowledge from your CVC. Many CVCs are well-structured companies that have a great deal of industry knowledge. Your startup can benefit immensely from that knowledge, whether you're asking questions about marketing or scaling your business. 

Take advantage of connections provided through the CVC. The members of the CVC may have substantial connections that can benefit your business--and you should take advantage of them. Marketing connections, vendor connections, and professional connections can all help advance your business and make it easier for you to meet your goals.

Work with you to bolster the community as a whole. Many Asian CVCs are community-focused, rather than being focused on increasingly gains only for the members. As a result, they will often work closely with you to help you achieve goals that are focused on improving quality of life for people outside your company and theirs. 

Understanding how a CVC can benefit your business shows that you've done your research and are ready to enter into a mutually beneficial partnership. Make sure you're familiar with the opportunities offered by specific Asian CVCs and how they can provide you with the connections you need to advance your business.

3. Know how much funding you need and why you're asking for it. 

When you put together your fundraising pitch, ask for set amounts of money and explain exactly why you're asking for it. While your goals and plans may matter more than the numbers, you still need a solid pitch that includes what you need to accomplish your goals--and what you plan to do when you receive it.

In some cases, you may raise more funds than anticipated, which can enable you to put additional plans into place. In other cases, however, you may receive exactly what you ask for, or even a little less. When you approach a CVC, know:

How much funding you need to accomplish the next, specific stage of your business. Carefully consider the next step you need to take, then the one after that. Include the funding you need to accomplish your next goals. 

Exactly how you'll use the funds provided to your business. If you receive a specific amount, how will you use it? You may want to assign specific platforms or stages that will show how you'll use the funds made available to you as they come in. 

Your understanding of both the funds you need and how you will use those funds can provide confidence to the CVC, increasing the odds that you'll get the funding your business needs. 

4. Research your audience.

Before your approach a CVC, make sure you know whether that company is likely to accept your request and a partnership with your business. Evaluate factors like:

The better you know the CVC before you approach, the better you can tailor your pitch to the specific requirements and attributes of that CVC. You want to put together an attractive pitch that is likely to be approved by the company, not one that sets you up for failure before you begin.

By spending a little more time on research, you can avoid wasting both your time and that of the CVC. Keep in mind that many Asian companies, in particular, focus on respecting elders--and your pitch and your plans need to reflect those values. 

5. Evaluate the market as a whole before proceeding.

You should know the place your business will have in the market as well as what the market as a whole looks like. Many events can cause a shift in market response, transforming the way many companies do business.

Before approaching a CVC, take a look at the market as a whole. Consider how the CVC is likely to respond to your business based on current market conditions as well as how your business might fit into the market--and what need you're fulfilling.

Sometimes, waiting a few weeks or months for a market to even back out can be all your business needs to set it up for success. Other times, you may want to take advantage of a current market need that could help set your business up for success. 

Are you a tech startup that wants to explore more funding opportunities in Asia? Join 20,000 top executives from Asia's leading companies at Asia's largest experiential conference, the Corporate Innovation Summit 2020. Visit the website to learn more or sign up today to prepare your business for greater levels of success.