Singapore is known as Asia’s “Silicon Valley” because it is the most desirable location for business startups. In addition to its low tax rates and business-friendly environment, the nation offers a number of financing sources for startups.
The Government offers several funding schemes and grants to incorporate a startup in Singapore. Along with government support, the country has many private equity firms, accelerator programs, angel investors, venture capitalists, and startup incubators that aid in raising capital for entrepreneurs.
The Singapore government has been introducing laws to encourage the development of the business environment. On the basis of eligibility requirements, they provide local entrepreneurs with a number of grants in cash and equity funding options. Below is the list of some government grants.
Startup SG
Startup SG, introduced in 2017, was a consolidation of some old assistance schemes by the Standard, Productivity, and Innovation Board Spring (SPRING). The main idea behind this scheme is to mentor Singapore-based startups to turn into thriving companies with their innovative business models. It helps qualifying startups to acquire cash grants, equity financing, and business loans.
Startup SG Founder
One of the six pillars of Startup SG, it provides a capital grant of up to $30,000 to first-time entrepreneurs on a co-matching arrangement. The entrepreneurs must apply through an Accredited Mentorship Partner (AMP) to be accepted for Startup SG Program.
Startup SG Tech
Startup SG Tech offers a grant for startups that need funding of around $250,000 to commercialize their Proof-of-Concept (POC) and $500,000 for Proof-of-Value (POV).
The grant will carry an equity component where Enterprise Singapore will have the right to exercise a share subscription.
Qualification Criteria:
Enrolled for under 5 years at the season of the award application.
Somewhere around 30% nearby shareholdings.
The organization’s gathering yearly deals turnover isn’t more than S$100 million or the gathering business size isn’t more than 200 specialists.
Center exercises to be done in Singapore.
Arrangements should likewise:
Obviously, show how science/innovation is applied
Be of a cutting-edge degree of development
Lead to or expand on restrictive expertise/IP
Be industrially reasonable.
Enterprise Development Grant
It is a program managed by Enterprise Singapore. This Grant enables startups to enhance their business operations, bring innovation and productivity, and expand overseas.
EDG grants 30-70% of the qualified project cost.
Qualification Criteria:
Business substance enrolled/consolidated in Singapore.
In a monetarily feasible situation to begin and finish the venture.
Somewhere around 30% neighborhood shareholding.
Productivity & Solutions Grant (PSG)
PSG has been introduced for those startups interested in enhancing their IT solutions and equipment that helps improve their productivity.
It offers up to 80% of the qualified technology expense.
Qualification Criteria:
A business element that is enlisted/consolidated in Singapore
No less than 30% nearby shareholding
Organization’s Group Annual Sales Turnover of not more than S$100 million, or Company’s Group Employment Size of not over 200 laborers
Buy/rent/membership of the Equipment or IT Solution should be utilized in Singapore
VentureForGood (VFG) Grant
VFG Grant is available for new or existing startups that address the local social need. The maximum eligible amount of the grant is $300,000.
Qualification Criteria:
Your social venture ought to address a nearby friendly hole/need in at least one of the given result regions to be qualified.
A portion of these regions incorporates the arrangement of work valuable open doors, crossing over a social hole in the space of psychological well-being, and providing care.
Business Improvement Fund (BIF)
This funding scheme is for the tourism sector to help improve its technology and business model programs. It is provided based on the size of an organization. SMEs get up to 70% of the qualifying cost, and non-SME applicants get up to 50% of the qualifying cost.
The company has to be eligible based on the factors:
The travel industry organization taking on capacity improvement drives.
Innovation organization that makes imaginative innovation items and administrations for the travel industry organizations.
Adjusted to EDG’s center points of support – center capacities and advancement and efficiency.
P-Max Scheme
P-Max is an initiative by Workforce SG for SMEs that aims to recruit, train, retain, and manage the hiring of Professionals, Managers, Executives, and Technicians (PMETs), who completed a 6-months workshop.
Companies will get a one-time grant of $5,000 when their newly hired staff completes a 6-months workshop program.
Qualification Criteria:
The business substance is enlisted/consolidated in Singapore.
Yearly Sales turnover of not more than S$100million, or work size not surpassing 200 representatives.
Offer recently recruited staff a gross compensation of no less than S$2,500 each month
No less than 30% nearby shareholding.
Apart from the above government grants, below are some non-government funding agencies.
Angel Investors
Angel Investors are high total assets people who put resources into new companies at their seed stage. These financial backers (known as “angels”) put resources into organizations regardless of no demonstrated progress of the organization’s plan of action. The financial backers contribute either separately or collectively.
Venture Capitalists
Venture capital funding is frequently reasonable for new companies or late-stage organizations that have an enormous capital necessity.
Private Equity Firms
Private Equity Firms allude to speculation made by a firm to secure responsibility for the non-public business. These organizations generally put resources into beneficial organizations which are in a high-development stage.
In conclusion, Singapore is perhaps the best spot on the planet to carry on with work approaches to financial backers from Singapore as well as from different areas of the planet.
Talk to us today to find out which is the best option of funding for your startup.
