According to spokespeople for the Entrepreneur First startup building community based out of London, the organization has recently been able to close a funding round to collect more than $12.4 million to be distributed throughout the numerous organizations and startups that this organization works to incubate in the UK as well as Singapore.
This most recent round of funding was led by the US venture capital firm Greylock Partners, though a whole host of other major venture capital firms were also involved in this round of funding as well as previous rounds of funding in the past.
As per the new agreement, however, there is a little bit of a shakeup at Entrepreneur First. Due to the amount of funding that had been raised during this round, the cofounder of LinkedIn and Greylock Partners is expected to join the board of the Entrepreneur First organization and will have full voting rights as well.
According to the spokespeople that were willing to go on the record if given anonymity, the money that has been raised in this new round of funding is expected to be funneled directly into startups that have been incubating in Singapore, shifting some funds from the traditional start of incubating community of Silicon Valley and moving it to the quickly growing and expanding startup culture that has taken off like wildfire in Singapore right now.
This is a little bit surprising, even if the “writing on the wall” has been there for more than a couple of years now that a lot of global startups have been shifting their focus to Singapore as opposed to the traditional hotbed of Silicon Valley.
Make no mistake about it, Silicon Valley remains the dominant force in the global community when it comes to building and fostering startups (especially in the technology and health spaces), but Singapore – thanks in large part to its very business friendly government, amazing tax breaks and benefits, and access to a tremendous amount of capital not just in Singapore but throughout Asia thanks to its relatively central location – has been growing a startup culture steadily as well that now rivals the early days of Silicon Valley.
To see money be shifted and allocated from Silicon Valley to Singapore shows just how seriously the global startup community is taking the businesses that are incubating here, even if the $12.5 million to be invested in this round of funding is only just a drop in the bucket compared to the values of some of the companies that have been established in Silicon Valley previously.
All told, more than 100 startups are expected to be launched thanks in large part to the injection of capital that this round of funding brings to the table. Entrepreneur First is looking to produce enough startups to hold a valuation of more than $1 billion when all is said and done, making the return on this investment one of the most impressive in the modern startup culture.
Entrepreneur First has had a lot of success with exits in the past (with Magic Tony being acquired by Twitter for $150 million in the last quarter of 2016, for example), it is anticipated that they will continue this trend moving forward.
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