Singapore Start-up Grants
Singapore is an economically successful third-world nation with very favorable business conditions for new companies. Singapore has been referred to as the world’s first free economy, making it a perfect place for startups to operate.
It provides all the amenities a startup could possibly need, including infrastructure intended to foster the growth of new businesses, tax benefits, large government subsidies, funding including Singapore startup grants, and excellent international connections.
An entrepreneur seeking to establish a new business in Singapore or someone who already has one might benefit from knowing about the various Singapore startup grants available to them. Singapore startup grants are an initiative of the Singaporean government to help startups to grow in the competitive market.
The purpose of this article is to inform you about some Singapore startup grants that are available to new entrepreneurs in the country.
You will get a deep understanding of the various startup SG grants available as part of the Singapore Startup Grants program. Furthermore, we will learn about the application process and eligibility criteria for the various Singapore Startup Grants.
About Startup SG
Startup SG was started in 2017 in order to highlight Singapore’s thriving startup system both locally and internationally. It integrates efforts to boost the ecosystem under its numerous initiatives and programs and advocates the common interests of the startup community.
Businesses under this Singapore Startup Grants can easily find and utilize support resources available to them.
In addition to providing entrepreneurs with a platform to access a network of international companies and local support programs, it also serves as a comprehensive source of funds, grants, loans, and capability-building opportunities.
If an individual wants to set up an enterprise in Singapore, he should be aware of the various grants available:
1. Startup SG Founder
The Startup SG Founder (SSGF) initiative aims to provide funding and guidance to business owners that are starting out. The primary beneficiaries of this program under Singapore startup grants are new business owners.
It provides startups with creative business concepts, and financial support of S$50000 by equating each S$5 to each and every S$1 raised by the owner for a maximum of S$50000.
Eligibility criteria for the Startup SG Founder program
The following requirements must be met by new entrepreneurs to qualify for this program under the Singapore startup grants:
- A Singapore citizen or Singaporean permanent residents must hold a minimum of 51% of the company’s issued shares in Singapore.
- 30% equity of the firm must be owned by the entrepreneur.
- The firms should not have obtained any other financial assistance from any other government agency.
- Not have previously gotten the SSGF grant.
- Following approval, the business must have a less than 6-month-old private limited corporation registration in Singapore.
- The business is required to contribute S$20,000 in co-matching capital on ACRA.
- At the time of submitting an application to EnterpriseSG, the firm is required to possess a minimum of $10,000 in paid-up capital on ACRA.
Steps to apply for the startup SG Founder Grant
- A startup contacts an Accredited Mentor Partner (AMP). The designated AMP will assess candidates’ business ideas if they satisfy the qualifying conditions. If AMP supports the business plan, it will give the startup a letter of recommendation.
- Following that, entrepreneurs will send their applications to Enterprise SG. The form would be analyzed by Enterprise SG.
- For startups that satisfy the qualification and assessment criteria, Enterprise SG will provide a letter of offer. Entrepreneurs who were not approved, may resubmit a modified application to AMP.
2. Startup SG Tech
Startup SG Tech is a Singapore startup grant program for technological firms that offers early-stage financing for developing proprietary technology.
The Startup SG Tech grant accelerates the development of unique technology innovations and spurs the expansion of entrepreneurs with unique technological foundations and sustainable operating models.
In the case of Startup SG Tech under Singapore startup grants, startups can receive funds in the form of two grants- Proof Of Concept (POC) and Proof Of Viability (POV).
- A grant of S$250000 is given to POC projects to support new technologies’ technical and scientific feasibility
- A grant of S$500000 is given to POV projects to support the technical and scientific feasibility of technology that has been tested in laboratories.
Sectors eligible for financial assistance under the SG Tech program
The following sectors are eligible for financial assistance under SG Tech Program.
- Automation and industrial manufacturing
- Medical research and Biotechnology
- IT and communication sector
- Precision engineering
- Transportation Sector
- Food science and technology sector
- Agritech
Eligibility criteria for the Startup SG Tech program
The following criteria must be met by enterprises in order to be eligible for a startup SG tech-
- When applying for the scheme, the startup must be a Singaporean-registered company and not more than ten years old.
- Should be operating in Singapore.
- Core R&D efforts for new businesses will be conducted in Singapore.
- Should own a minimum of 30% of the local shares.
- The startup’s yearly sales must be less than S$100 million.
- The startup should recruit no more than 200 people.
- The primary applicant should be playing a crucial part in the business.
Steps to apply for SG Tech
Application for Startup SG has three phases-
- Phase I (Registration of Interest)
- Download the registration form, fill it out, and then go to www.gov.sg to complete the necessary information.
- Upload your filled-out form as an attachment along with a description of the planned project.
- When the screening is finished, you’ll be informed of the outcome.
- Phase II (Application & Evaluation)
- If your application is approved, Enterprise Singapore will request that you submit an official application that includes a detailed business plan and a cost estimate. Both templates will be sent out properly. The business innovation, technical viability, and commercial viability of proposals are evaluated.
- Phase III (Final Panel Evaluation)
- A final evaluation panel made up of industry professionals will hear the ideas from Stage II applicants who were chosen (both POC and POV). The evaluating panel’s conclusion is final.
3. Startup SG Accelerator
Startup SG Accelerator under Singapore startup helps entrepreneurs with enablers like incubators or accelerators to foster the growth of high-potential Singaporean enterprises.
This program could support the firm enablers’ in-market initiatives and also aids international venture enablers in establishing themselves in Singapore.
This program offers incubators and accelerators finance as well as non-financial help to startups operating in sectors with strong future development.
Incubators provide early-stage support for entrepreneurs by supporting commercialization, implementation, and ideation. Accelerators, on the other hand, place a higher priority on innovation and development.
The objective of this program under the Singapore startup grants is to boost the startup’s initiatives and know-how to foster prosperous Singapore-based entrepreneurs.
The essential expenses that may be covered by the funding assistance provided by startup SG Accelerator are-
- Activities Development– Costs associated with developing activities that assist startups in creating new goods and services, gaining company finance, enhancing access to markets, etc.
- Guiding Entrepreneurs– Costs associated with engaging mentors and specialists to offer management and operational advice to new entrepreneurs.
- Operational Costs– Enterprise Singapore will decide the administrative expenses that can be subsidized under these Singapore startup Grants, such as workers’ salaries.
Eligibility criteria for the Startup SG Accelerator program
The following parameters should be met by startups in order to be qualified for the startup SG Accelerator program
1. Be an enterprise builder, accelerator, or incubator with a distinct value program that has a proven track record of fostering innovative businesses in industries like-
- Talent Access
- Financing
- Startup Education
- Management Direction
- Guidance
2. Be prepared to establish a presence in Singapore in order to support startups there.
3. Must require a revenue strategy that supports long-term progress.
4. Should have a management team with the track record and qualifications to develop creative enterprises from their beginnings into greater businesses.
Steps to apply for SG Accelerator
The potential incubator or accelerator may send a draft business plan that includes the following details:
- Startup History
- Information on the incubation program
- Startups management group
4. Startup SG Equity
Under the startup SG Equity program, the Singaporean government co-invests with qualified third-party backers in startups that need a lot of capital upfront and take time to become profitable.
Under the Singapore startup grants, this program provides businesses that are progressing technology with a co-investment amount that accounts for 70% of the capital in the initial stages of investment of S$250K.
After that, up to a maximum of S$2 million, the Singaporean government will contribute S$1 for every S$1 invested by private sponsors.
In the case of Singapore startup grants, for the firms categorized as “deep tech,” the Singaporean government would contribute 70% of the cash in the initial stage of the S$500K investment.
After that, up to a maximum investment of S$4 million, the government will make an equal contribution of S$1 for every S$1 provided by the private sponsors.
Eligibility Criteria for the Startup SG Equity
The following criteria must be fulfilled by entrepreneurs in order to be eligible for Startup SG Equity-
- Be a Singapore-based startup with its primary operations there.
- Fewer than 10 years from incorporation as a private limited company.
- The business under this Singapore startup grants cannot be a joint operation or a subsidiary.
- A minimum paid-up capital of S$50000.
- Creates or implements innovation.
- Possess a strong potential for growth and sustainability in the global market.
- Have a willing, impartial third-party investor.
- Businesses shouldn’t engage in gambling or the sale of tobacco goods. It is best to refrain from engaging in illegal or immoral activities.
For individuals who wish to co-invest in this Singapore startup grants, the following these particular actions are required:
- For an initial evaluation, entrepreneurs must provide a two-page executive overview and related documentation of the firm.
- business strategy
- Accounting statements
- Company ACRA
- Information about a potential co-investor
For candidates considering the fund-of-funds in this Singapore startup grants, the following must be included in an individual’s business deck or executive overview:
- Team qualifications and deep tech financial investments
- history of prior investments
- priority areas for investments
- Overview of portfolio firms that come under these three categories of deep technology:
- Agro-based Industries
- Pharmacy, Biotech, and Medical Technology
- Modern manufacturing as well as Engineering
- Prospectus of Financing
Read More: SMEs Grant Singapore
Conclusion
There are numerous types of Singapore Startup grants available to help enterprises at different stages of growth. The Singapore startup grants support startups by providing them with numerous financial assistance and other forms of incentives as long as they fulfill the eligibility criteria. If you create a business in Singapore, you can take financial support by applying for various programs under Startup SG depending on what your company needs.
Contact our specialists at OnDemand International for any help you may need regarding Singapore startup grants. Our consultants would be happy to assist you with your queries.
FAQ’s
The several startup grants offered in Singapore include
- Startup SG Tech
- Startup SG Infrastructure
- Startup SG Equity
- Startup SG Founder
- Startup SG Loan
- Startup SG Accelerator, etc.
The startup SG program is a scheme to promote the ecosystem under its numerous programs and initiatives and represents the mutual interests of the corporate community. Entrepreneurs could more quickly find and utilize various sources of assistance thanks to Startup SG.
Since 2017, Startup SG was operating.
The Startup SG Tech grant accelerates the development of unique technology innovations and spurs the expansion of entrepreneurs with unique technological foundations and sustainable operating models.
Singapore startup grants can be used for a variety of purposes, doing market research, purchasing equipment, and developing new products.
