Case Study:
Startup Fundraising Strategy
Service
Fundraising
Industry
Health - Robotics
Client
Sesto Robotics
Country
Singapore
“TRIVE understands the challenges that start-up founders and management face in developing a sustainable business and they seek to help and motivate the management team to chart the path to success.”
— Ang Chor Chen, CEO, Sesto Robotics,
Client Challenges
Sesto Robotics sought Series A funding to boost its R&D operations and meet working capital demands.
The Outcome
Sesto Robotics was able to complete its Series A funding round with a US$5.7 million close.
Our Approach
Managing risk and trust
To help mitigate these challenges, our venture capital firm, TRIVE, took on the role of lead investor and board member, leveraging its credibility to bolster Sesto Robotics' standing. TRIVE performed a comprehensive internal management (IM) assessment of the company's current status and future prospects. Once we firmly understood and believed in the company's potential, we presented it to SEEDS Capital, who agreed to co-invest on the condition that TRIVE would lead the investment round. Our active involvement didn't stop there. We also played a crucial role in securing a strategic investor, WTI, a mid-sized German manufacturing group interested in expanding its Asian operations.
A capital intensive business
Sesto Robotics, a startup operating in the robotics industry, found itself in a complex and capital-intensive business environment which made securing investment challenging. The high capital expenditure (CAPEX) required in the robotics sector, coupled with the intricate nature of the industry, made it difficult for potential investors to fully comprehend the value proposition and invest confidently.
What we have learned
Capital-intensive industries need strategic investors: In capital-intensive sectors like robotics, conventional funding methods may not suffice. Leveraging our network to bring in strategic investors who understand and are interested in the space can be pivotal for the company's growth.
Hands-on involvement can lead to better outcomes: From acting as a lead investor and board member to securing other investments, our deep involvement demonstrated the potential advantages of a hands-on approach in venture capital.
Trust is paramount in risk-heavy investments: Through our role as a strategic advisor and the trust we built, we could convince other investors about the startup's potential. This showed that fostering trust and understanding can significantly impact the company's ability to secure investment, especially in high-risk industries.
What’s next?
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