One-stop hub to access grants and assistance for startups

1 Feb 2019 | SMB, Digitalisation | 7 min read

Startup SG makes it easier for local business owners and entrepreneurs to identify relevant schemes for their unique situations and needs. These were the thoughts from Minister of State for Trade and Industry Koh Poh Koon at the unveiling of Startup SG in 2017.

It serves as a platform for local entrepreneurs to tap onto for support initiatives like funding as well as access to the global entrepreneurial network. For business owners in Singapore, the platform is a one-stop source for loans, grants, funding and capability-enhancement.

Startup SG ensures that it oversees and addresses a wide variety of needs and problems in the startup ecosystem. To make it easier for business owners to find exactly what they want, the platform is categorised under six broad pillars.

If you have an innovative idea but don’t know where to start, Startup SG Founder is a good place. The scheme provides mentorship and a start-up capital grant to first-time entrepreneurs. Under the scheme, enterprise development-championing government agency Enterprise Singapore matches $3 for every dollar raised by the entrepreneur.

Additionally, under this scheme, the government agency provides mentorship to entrepreneurs with its Accredited Mentor Partners (AMP), who will identify qualifying applicants based on the uniqueness of business concept, viability of business model, strengths of the management and potential market value.

During the application process, AMPs and the startup will agree on the milestones before submitting the application to Enterprise Singapore. If successful, the AMP will then assist the startup in the form of networking contacts, advice and learning programs.

Businesses that are interested in developing deep-tech innovations can look to this scheme, which helps accelerate the growth and development of proprietary technology particularly in the following sectors:

• advanced manufacturing,
• robotics,
• healthcare,
• biotechnology and biomedical sciences,
• information and communication technologies,
• clean technologies,
• precision engineering,
• transport engineering and engineering services.

This grant essentially helps to speed up the development as well as commercialisation of proprietary technology. Successful applicants may receive early stage funding for these. Under this scheme, there are two types of grants: Proof-of-Concept (POC) and Proof-of-Value (POV). Business owners can apply for the respective grants based on the technology’s developmental stage.

To be a successful applicant for this grant, the solution proposed must be commercially viable, lead to or build on proprietary technology, and must be considered to be a breakthrough level of technology.

This scheme ultimately aims to encourage private sector investment by co-investing in general tech and deep-tech startups along with third party investors. The government will only co-invest if private sector investors are willing to put in at least $50,000 each into the startup as well as provide management experience necessary contacts and expertise to contribute to the startup’s growth.

Businesses interested in this grant need ready, independent third-party investors, a clear internationally-scalable business model, and have substantial intellectual product content.

Startup SG Accelerator aims to boost the startup ecosystem by providing more support to incubators and accelerators, which play an important role in the growth of innovation, commercialisation of ideas as well as patent creation.

The scheme helps startups develop new products and services, obtain financing, and improves their access to the global market at large. It also supports costs of hiring mentors and experts to provide technical know-how and guide these companies to grow further. Further, the scheme includes funding support for operating expenses like salaries for the incubation team.

To qualify for this scheme, incubators or venture accelerators need to have a good value proposition or existing exclusive schemes that help startups commercialise ideas, access finance or investment, as well as talent, mentorship and guidance. There also needs to be an experienced management team who can nurture innovative startups – especially in sectors that include Fintech, Internet of Things (IoT) to Smart Logistics among others.

For startups, the world is your oyster – especially with regards to talent. Startup SG Talent makes this easier by creating an environment that attracts talent from all over the world to join local startups. There are several schemes under this pillar including EntrePass, T-Up and SME Talent Programme (STP).

EntrePass is a work pass scheme for foreign entrepreneurs keen to start businesses in Singapore who can complement local skillsets and contribute to the startup ecosystem here.

T-Up helps to enhance businesses’ in-house research and development capabilities by giving them access to talent from A*Star’s Research Institutes. It subsidises up to 70% of the secondment costs of research scientists and engineers for a period of up to two years. To be eligible for this scheme, SMBs have to be Singapore-registered with a minimum of 30% local shareholding and with less than 200 employees.

Finally, the STP helps tech-based startups build up their talent by matching students seeking internships. The scheme subsidises 70% of interns’ stipends.

This scheme offers government-backed loans that provide companies with working capital and financing for equipment, factory, and trade.

The SME Micro loan provides working capital financing of up to S$100,000 to support companies with 10 or fewer employees in their business operations. High-growth companies can turn to the SME Venture Loan, which can grant up to $5,000,000 of alternative financing for their expansion.

Startups can also apply for the SME Working Capital Loan that can grant them an unsecured working capital financing of up to $300,000.

To purchase equipment, machines or selected factory properties – especially for startups keen to automate operations – SMEs can rely on the Equipment and Factory Loans that grant up to $15 million.