Tenacious Founders Fund
Frequently asked questions
About the Venture Philanthropy Fund
Q: Who is the fund meant for?
A: Entrepreneurs based out of Singapore and have shown grit in their business. What they need now is an act of faith from a backer who can provide them financial resources to move to success.
Q: What is expected of an entrepreneur who receives the support?
A: Get moving and execute fast to grow the business. Where possible, redeem the Redeemable Safe Note (more details below) as quickly as possible so that others can benefit from the fund.
We also expect entrepreneurs to show gratitude by assisting the next cohort of entrepreneurs with their time and funds in future.
Q: Is this another of TRIVE’s Venture Capital Funds?
A: No, it is part of our Corporate Social Responsibility work and this fund operates like a Venture Philanthropy. The aim is to assist the startup applicant with the necessary resources to succeed but will not share in the upside success.
Q: What level of mentorship will TRIVE provide?
A: There will be no mentorship for this CSR program. A regular update to check in will be done and some advisory will be provided.
Q: Can I apply more than once?
A: Due to the expected popularity of this CSR fund, we will not entertain a repeated application. This is only fair to others who are trying to apply for the fund.
Q: Could I request for more than S$100k?
A: No, the aim of the fund is to allow the startup founder to meet a certain milestone in order to obtain more fundraising and investment. If the amount is just too large, then this fund is not applicable.
Q: I have other financial long-term liabilities in the company like loans and debts to founders, will you still accept my application?
A: Yes we will accept as we know tenacious founders do leverage to get their business going and we respect that.
Q: Can I use the funds to pay off my current debt obligations?
A: No, the fund is solely use to grow the company. The profits generated using the funds to grow the company can be used to pay back the loans.
Q: If I am successful in obtaining the Tenacious Founders Fund, will TRIVE invest in my startup via their VC funds?
A: There is no guarantee that TRIVE’s current VC funds will invest. It will depend on the investment mandate of the VC funds. Knowing the founders on a personal level is a good foundation for accessing the company for investment.
About the Founder-redeemable SAFE Note (“RSN”)
Q: What is a RSN?
A: We structure the RSN with the intention to support the founders. As such, the RSN sits on the equity section of the balance sheet. It is designed to be simple to employ, without any requirements for valuation and share issuance.
Q: Must I pay back / redeem the RSN?
A: In principle, we want the startup to redeem the RSN as soon as it is feasible. This is very important as the funds will be recycled back into the pool and to help other founders in need. The RSN may also be sold off to another investor who wishes to take long-term ownership of the startup. This will be in discussion with the founder.
Q: How is the RSN deployed?
A: Upon signing of the RSN, the funds (one lump sum) will be transferred within a reasonable processing time. There are no tranches.
Q: Must I follow a strict budget on how the funds are used?
A: No, the founder knows what is best for his/her business and will deploy the funds accordingly to achieve the objective of clearing the tipping point of success.
Q: Must I guarantee the RSN?
A: There is no need for guarantees (personal or otherwise). The RSN is given based on trust and on the reputation of the founder and the recommender. Strict checks will be made on the integrity of the founder receiving the RSN.
Q: What is the redemption period of the RSN?
A: It will be a mutual agreed period between the founder and TRIVE.
Q: Is there be a discount/Valuation Cap on the RSN?
A: Yes, there will be a 35% discount on the RSN as a form of incentive should an investor wish to take over the Note.
Q: Are there additional fees or interest payable on redemption?
A: There is no fees or interest on the RSN. There will mutually agreed-upon pay-it-forward contribution at redemption by the founders to the initiative between the founder and TRIVE.
Intentions
Q: Why are you doing this?
A: TRIVE has been a pioneer in the Singapore startup ecosystem, providing CSR help to over 2000 startups with government grants and 1-to-1 advisories since 2011.
TRIVE remains a firm believer of entrepreneurship and will continue by running the Tenacious Founder Fund.
Q: Who is the family foundation backing this fund?
A: The family foundation has requested privacy. Their sole intent is to give back to the community. They have chosen TRIVE due to our integrity and CSR purpose.