Mainly the lack of adequate funding is often the most common stumbling block for start-ups in general. Singapore government has rolled out several initiatives to enable start-ups to gain access to funding. Start-ups need support at various stages of growth and securing funding at the early stages is especially critical.

There are various grants and funding that are provided by Spring Singapore (SPRING). SPRING works with their partners to support start-ups at different stages of growth and strives to build a vibrant start-up landscape where innovative start-ups can flourish and grow in a sustainable manner.

1. Equity Investment

   Raising early capital to scale up your company? SPRING SEEDS Capital, SPRING’s investment arm, co-invests in innovative start-ups with third-party investors and participating business angel investors, and accelerators.

   1. Business Angel Scheme (BAS)

      Start-ups that obtain investment interest and commitment from any of the business angel investors can apply for matching investment from SPRING SEEDS Capital, SPRING’s investment arm. SPRING may match the investment dollar-for-dollar for up to a maximum of S$2 million. Both SPRING SEEDS Capital and the business angel investors will take equity stakes in the company in proportion to their investments.

   2. SPRING Startup Enterprise Development Scheme (SPRING SEEDS)

      SPRING SEEDS Capital Pte Ltd (SSC), is the investment arm of SPRING Singapore, manages the SPRING Start-up Enterprise Development Scheme (SPRING SEEDS), an equity-based co-financing option for Singapore-based start-ups with innovative products and/or processes with intellectual content and strong growth potential across international markets.

   3. Sector Specific Accelerator (SSA) Programme

      Nascent sectors are characterised by few local enterprises; limited pool of domain experts; and absence of early stage investors. While these sectors receive significant R&D funds, there are insufficient enterprises to commercialise the resulting intellectual property.

      A total of $70 million has been committed under the Sector Specific Accelerator (SSA) Programme to encourage the formation and growth of start-ups in medical technology. The four accelerators, Clearbridge BSA, Singapore Medtech Accelerator, Zicom MedTacc and Medtech Alliance have been appointed to identify and co-invest with SSC in high-potential medical technology start-ups. Besides co-investing, the accelerators take a hands-on approach to help the start-ups build up their management teams, meet regulatory requirements and connect with potential customers. SPRING SEEDS Capital, SPRING’s investment arm, co-invests with the accelerators on a 1:1 basis.

2. Grants
   1. ACE Startup Grants

      If you are a first-time entrepreneur with a unique and differentiated business idea, you can apply for the ACE Startups grant. The ACE Startups Grant provides funding support to entrepreneurial Singaporeans who want to take their first step in starting up differentiated businesses. Applications will be shortlisted on a competitive basis based on the 4 key evaluation criteria of differentiation, business model feasibility, potential market opportunity and management team. SPRING will match S$7 to every S$3 raised by the entrepreneur for up to S$50,000, i.e. For you to receive a grant of $50,000, you will need to raise $21,429 for co-matching upon acceptance of the Letter of Offer.

   2. Capability Development Grant (CDG) Technology Commercialisation

      The grant defrays up to 70 percent* of qualifying project costs such as consultancy, training, certification and equipment costs. You can take on large scale upgrading projects in areas like increasing productivity, process improvement, product development and market access.

      To encourage more SMEs to build business capabilities, the application process for grant support of S$30,000 or less has been simplified. You can look forward to simpler application forms and reduced documentation requirements for such projects.

3. Tax Incentives Schemes
   Angel Investors Tax Deduction (AITD) Scheme

   The scheme is suitable for angel investors who can commit a minimum of $100,000 in a qualifying start-up. As an approved angel investor, you can enjoy a tax deduction of 50% of your investment at the end of a two-year holding period. For each Year of Assessment (YA), the eligible investments will be subject to a cap of $500,000, and the corresponding maximum tax deduction is $250,000.

4. Incubator Support Scheme

   The Incubator Development Programme (IDP) may cover the following costs:

   Programmes to Nurture Start-ups: Costs of developing programme(s) that help start-ups develop new products and services, obtain business financing, improve market access, etc.

   Mentoring Start-Ups: Hiring of mentors to provide management guidance to start-ups

   Operating Expenses: Salaries for the incubation team, marketing costs, events etc.

5. Voucher

   The Innovation & Capability Voucher (ICV) is a simple to apply, easy-to-use voucher valued at $5,000, to encourage SMEs to develop their business capabilities.

   SMEs can use the voucher to upgrade and strengthen their core business operations through consultancy in the areas of innovation, productivity, human resources and financial management. Apart from consultancy, ICV also supports SMEs in the adoption and implementation of simple solutions to improve business efficiency and productivity.

   SMEs can use the ICV to implement pre-scoped Integrated Solutions, or productivity solutions under the supportable cost categories of (i) equipment & hardware and (ii) design & renovation. Each SME is entitled to a maximum of eight vouchers. Each ICV project must be completed before the submission of a new application. The duration for each project should not exceed six months.

In Summary, SPRING will assess the application based on the company needs, the project scope and competency of the service provider in improving your business capabilities. All applications are subject to SPRING’s approval.

Note: The above information is extracted from Spring Singapore. If you need any further details, please visit their website at www.spring.gov.sg.