How Singapore supports start-ups through equity investment, grants and technology commercialisation.

SPRING SEEDS

 

Overview

The SPRING Start-up Enterprise Development Scheme (SPRING SEEDS) is 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.

The SPRING Start-up Enterprise Development Scheme is being managed by SPRING SEEDS Capital Pte Ltd (SSC), the investment arm of SPRING Singapore.

 

Background

The SPRING Singapore Government agency delivers a collection of programs to help start-ups which include equity investment, grants and technology commercialisation. In particular, its venture investment arm SPRING SEEDS co-invests in start-ups with third parties such as angel investors and accelerators.

The National Research Foundation’s Technology Incubation Scheme co-invests in start-ups up to 85 percent of the investment up to a maximum of SGD$500,000 by a recommended incubator. Singapore also offers a R&D tax incentive which is modelled on the Australian R&D Tax Incentive and is administered by the Inland Revenue Authority of Singapore (IRAS).

Investment of SGD$225 million to support Fintechinnovation has been announced by Singapore to fund innovation centres and infrastructure.

 

Funding

Singapore’s Media Development Authority (MDA) delivers two programs:

1. Early Stage Program

  • provides SGD$60,000 seed funding to start-ups, where $50,000 comes from the MDA and $10,000 from an incubator.
  • The funds are provided to the incubator.
  • The funding is provided in four rounds of $15,000 and is dependent on the achievement of milestones.

2. Later Stage Program

  • provides start-ups with approximately SGD$200,000 funding where $100,000 funding from an incubator is matched one-to-one by the MDA.
  • There is no equity stake taken by the MDA.

 

Eligibility

For the Applicant

To be eligible for investment consideration, interested start-ups must :

  1. be a Singapore-based company with core activities carried out in Singapore.
  2. be incorporated as a Private Limited company for less than five years.
  3. have paid-up capital of at least $50,000.
  4. be able to evidence substantial innovative and intellectual content for its products and/or services and/or applications.
  5. have high growth potential with clear scalability for the international market.
  6. have identified a ready, independent third-party investor(s).

For the Investor(s)

  1. The corporate or individual investor(s) must not have prior interest in the company at the point of application and must be independent and objective.
  2. The corporate investor(s) must be legal entities with a minimum paid-up capital of $500,000.
  3. The investor(s) must also be able to contribute to the startup’s growth. The investor(s) should possess the management experience, relevant business contacts and/or necessary technical expertise that can value add to the startup.
  4. The investor(s) must be willing to take up a Board seat in the startup, should the investment be supported by SSC.
  5. The investor(s) must be prepared to invest at least $75,000 each into the business and conduct due diligence on the company.

 

More Information

  • SPRING SEEDS official application form
  • SPRING SEEDS FAQs