As the roles and functions of a Venture Capitalist Firm may vary depending on region and country, the core mission of a Venture Capitalist Firm remains relatively unchanged.
The content should also align with the BCM Policy issued by the Monetary Authority of Singapore.
The start of any BCM implementation based on the ISO 22301 BCMS standard starts with "Understanding Your Organisation". This is where we provide an understanding of the "Venture Capitalist Firm" operating in Singapore and the functionality within each Venture Capitalist Firm.
A venture capitalist (VC) firm is a specialized financial institution that provides funding and support to startup and early-stage companies in exchange for equity ownership. These firms typically have a pool of capital sourced from various investors, such as high-net-worth individuals, corporations, pension funds, and government entities.
The primary objective of a VC firm is to invest in innovative and promising businesses with the potential for substantial growth and high returns on investment. The process involves assessing business proposals, conducting due diligence, negotiating investment terms, and actively supporting the portfolio companies to enhance their value.
VC firms play a critical role in the entrepreneurial ecosystem by identifying and backing innovative startups that may lack access to traditional financing from banks or public markets. They often focus on specific industries or sectors, leveraging their expertise and networks to provide strategic guidance and mentorship to portfolio companies.
Besides financial investment, VC firms offer valuable advice, mentorship, and business connections, helping startups navigate challenges and accelerate their growth. The ultimate goal for the VC firm and the startups they invest in is to achieve successful exits through acquisition by a larger company or an initial public offering (IPO), resulting in significant returns for the investors and stakeholders involved.
A venture capitalist firm embodies a crucial bridge between entrepreneurs seeking funding and investors seeking attractive investment opportunities. They play a pivotal role in fostering innovation, stimulating economic growth, and developing a thriving entrepreneurial landscape.
These "business functions" or "products and services" can be broadly described as protecting personnel and/or assets. A venture capital (VC) firm performs various business functions to operate, manage investments, and drive growth effectively. Here's a comprehensive list of business functions typically performed by a VC firm.
| Business Function | Description |
| Deal Sourcing and Origination | Identifying and sourcing potential investment opportunities through networking, industry events, referrals, and research. |
| Due Diligence | Conducting thorough due diligence on potential investment opportunities to assess the market, product, team, financials, legal aspects, and other relevant factors. |
| Investment Evaluation and Decision-making | Analysing due diligence findings and evaluating the investment potential to make informed investment decisions. |
| Deal Structuring and Negotiation | Structuring investment terms, agreements, and negotiations with entrepreneurs and stakeholders to ensure favourable terms for the VC firm. |
| Portfolio Management | Managing and supporting portfolio companies post-investment to help them achieve growth and strategic goals. |
| Financial Analysis and Modeling | Conducting financial analysis, modelling, and forecasting to evaluate potential investment returns and assess financial viability. |
| Risk Assessment and Mitigation | Identifying, analyzing, and mitigating risks associated with potential investments to safeguard the interests of the VC firm and its investors. |
| Legal and Compliance | Managing legal matters, contracts, compliance with regulations, and ensuring all investments comply with relevant laws. |
| Fundraising and Investor Relations | Attracting capital from limited partners (LPs) through fundraising efforts and maintaining strong investor relationships. |
| Public Relations and Branding | Building and managing the VC firm's brand, public image, and relationships within the startup and investment community. |
| Strategic Planning and Advisory | Providing strategic guidance to portfolio companies and assisting them with business planning, market positioning, and growth strategies. |
| Operations Management | Overseeing internal operations to ensure the efficiency and smooth functioning of the VC firm. |
| Market Research and Analysis | Conducting market research and analysis to identify emerging trends, potential investment sectors, and growth opportunities. |
| Information Technology and Data Management | Managing the firm's technology infrastructure, data analytics, and IT systems to support decision-making and operations. |
| Talent Acquisition and Management | Attracting and managing talent within the VC firm, including hiring, training, and developing team members. |
| Fund Administration and Accounting | Handling fund administration, accounting, financial reporting, and budgeting to ensure compliance and transparency. |
| Exit Strategy and M&A Support | Planning and executing exit strategies for portfolio companies, including mergers and acquisitions (M&A), IPOs, or strategic partnerships. |
| Networking and Relationship Management | Building and maintaining a solid network of industry professionals, entrepreneurs, advisors, and other stakeholders to facilitate deal flow and collaboration. |
Each of these functions plays a crucial role in the overall success of a venture capital firm by enabling effective investments, strategic growth, and value creation for both the firm and its portfolio companies.
The organisational structure of a venture capital (VC) firm can vary based on factors such as the firm's size, focus, investment strategy, and stage of development. However, a typical venture capital firm often follows a structure with key roles and departments.
| Member/ Team | Roles |
| General Partners (GPs) |
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| Limited Partners (LPs) |
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| Investment Team |
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| Deal Sourcing and Origination Team |
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| Due Diligence Team |
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| Portfolio Management Team |
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| Legal and Compliance |
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| Finance and Administration Team |
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| Marketing and Investor Relations Team |
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| Operations and IT Team |
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| Advisory Board or Partners |
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The exact structure and roles within a venture capital firm can vary based on the firm's specific focus, investment strategy (e.g., early-stage, late-stage, industry-specific), and the size and maturity of the firm.
Like crises, disasters can hinder an organization. However, in such events, access to facilities and infrastructure is denied.
Disasters relating to Venture Capitalist Firms can include:
If you find crisis and disaster confusing, this article, "What is Crisis Management Vs Business Continuity Management? Often Confused", may help you understand the concept better.
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The following blog will provide the "Planning Steps for Implementing BCM for Venture Capitalist Firms". You will have a good overview of the steps to be taken and, lastly, what competency you should have with funding from the Singapore government. |
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Click the "Overview of Training-led BCM Implementation" for the detailed briefing. Note that this course has value-added services to meet the minimum BCM requirement. After the reading, you may want to know about the funding details from SkillsFuture Singapore (SSG). |
If you are a Singapore-based company or Singaporean and Permanent Resident, you can opt to receive BCM training via:
| WSQ BCM Course Funding: Course Code: BCM-310; BCM-320; BCM-330 | Non-WSQ BCM Course: BCM-5000 for assigned Project Manager |
Goh, M. H. (2015). Business Continuity Management Planning Methodology. International Journal of Disaster Recovery and Business Continuity, 6, 9–16. Retrieved from http://dx.doi.org/10.14257/ijdrbc.2015.6.02