VDF1 Invests Into Local Manicure Salons
23 Sept 2020, by SEED Ventures
Venture Debt Fund 1 (“VDF1”), a debt-based fund domiciled in Singapore, has invested into local manicure salons, FE the Nail Lounge Pte Ltd and FE Artistry Pte Ltd (“Companies”).
The investment that values the Companies in the 7 digits was made in view of the latter’s stellar track records as well as expansion plans in the pipeline.
Given the Covid19 pandemic climate, some may be skeptical about the timing of such an investment move to invest into brick-and-mortar businesses. VDF1’s co-general partner, Ian Gan, is bullish about the prospects of the Companies in 2021 and beyond due to their established brand-name, loyal clientele around the Central Business District area and beaming financial track records that spanned 13 years.
Co-general partner, Lynn Lin, took into consideration the salons’ resilience in riding through past crises, such as the Global Financial Crisis (“GFC”) in 2008/09 when most local companies were knee-capped when credit was tight.
The Companies survived the GFC and eventually opened more branches over the next few years. Group annual sales grew steadily and exceeded a million dollars every year from 2010, without resorting to bank loans. While growth was impeded in the most part of early 2020, business remained viable and both the founders and investors are confident that business will turn a corner as soon as the crisis is over.
“This is the best time for investors to invest in businesses with sound fundamentals”, says Ian Gan. Lynn Lin adds: “The Companies look forward to creating more jobs as they enter a growth phase in early 2021”.
The Companies have plans to garner more market share in 2021 and beyond. There are also plans to expand product lines by way of providing mobile manicure services where customers can opt for home-manicure services for a fee top-up. Test runs have been promising where it was found many customers, especially those working from home, are willing to pay more for services as it saves them traveling time to get to the physical outlets.
Given the Companies’ established brand name and financial viability, franchising the business is another viable option.
VDF1 is a Singapore-based fund that offers interest-free loans to promising startups in exchange for equity. Its General Partners are SEED Ventures and Reed Capital Partners.
Website: www.seedventures.biz, www.reedcapital.asia
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SEED Ventures secures Capital Markets Services Licence to Provide Venture Capital Fund Management Services
10 Jan 2020, by SEED Ventures
SEED Ventures (“SV”), a venture capital ("VC") company headquartered in Singapore, is pleased to announce it has been granted a Capital Markets Services (“CMS”) licence by the Monetary Authority of Singapore (“MAS”).
With the CMS licence, SV will be able to invest into startups on behalf of its investors via its Venture Capital Fund Management service.
Ian Gan, founder and Chief Executive Officer of SV, said: “This licence is a significant milestone for SV and further entrenches our role in Singapore as a leading seed-stage VC company. We are delighted to be one of the few VCs to receive approval from the MAS, and we believe this attests to our track record working with startups, management expertise and strength of our business plans to back the region’s startup ecosystem. The licence will enable us to expand our investor base by managing funds from accredited and institutional investors.
Nixon Ng, co-founder of SV, added: “Since 2013, SV has gotten involved with hundreds of startups and Small and Medium Enterprises (“SME”). Accordingly, it is keenly aware of the challenges faced by them, such as garnering market-share and connecting to buyers. It is a lot more than just cutting them cheques. Taking ownership in each investee and spending time with them is critical. The CMS license will enable us the resources to do even more for them”.
Ter Weizhi, Director of SV, sums it up: The next few years ahead will be exciting as SV scales up its investment efforts. Many more entrepreneurs will benefit with SV's involvement. We look forward to bringing them to the next level, and in doing so, generate extraordinary capital gains for our investors.
About SEED Ventures
SV is heavily involved in entrepreneurship activities in Statutory boards and Institutes of Higher Learning in Singapore such as National University of Singapore (NUS), Singapore Management University (SMU) and Agency for Science, Technology and Research (A*STAR). It currently has representative offices in 4 regions outside Singapore: Kuala Lumpur (Malaysia), Bangkok (Thailand), Ho Chi Minh City (Vietnam) and Manila (Philippines).