Startup investment

Invest in Start-up business

The concept of startup business

A start-up business is a newly established enterprise, often funded by venture capitalists with profit expectation through development of products or services which they believe the market is in demand. Due to its nature of high cost and low income at initial stages, most start-up projects are unlikely to survive in the long-term without additional investments from venture capitalists.

In terms of legal structure, start-up business needs advisory for constructing a structure best suits their business type. For small businesses, they tend to use the ownership structure which only includes a founder and a direct person operating the business. For larger firms with more co-founders and owners, the Joint Venture model can be considered. In many cases, personal responsibility can be minimized by registering as a limited liability company (Ltd.,).

To become a successful and sustainable business, start-up companies need capital and invest adequate time to do research. Market research can help businesses identify market demand for products and services. Start-up businesses also need a business plan, including detailed targets, vision, mission as well as marketing strategies for products and services. In addition, start-up businesses also need to decide whether to choose an online operation or to rent an office, workshop, warehouse, landings… This entirely depends on the products and services of start-up businesses. For example, a technology retailer selling virtual reality technology will need a store to allow clients to come and experience product features before they decide to pay.

Regarding fund and financial solutions for start-up business, currently there are many types available in the world. The “crowdfunding” approach allows investors who have confidence towards a start-up business contribute money via crowdfunding network, which is similar to invest in a trust fund of a community investment fund. Many businesses choose to raise funds via venture capitalists. They are a group of professional investors, specializing in start-up investments. Silicon Valley is a well-known example of start-up investments got funded by many venture capitalists. In addition, banks also offer a variety of financial packages for small and medium-sized enterprises (SMEs). To get a bank loan, start-up businesses need to have a detailed business plan along with a number of conditions.

Similarly with other advisory services in investment banking, start-up advisory at HVA will support start-up businesses in all aspects they may need, from evaluation, product advisory, developing business plan, research and evaluate financial solutions and fundraising.