Each startup needs funding.
How will you launch and start your company if you do not have the money to turn up the gear? Funding your business is definitely a priority and you must be thankful that Singapore is country offering schemes and grants to aid startups with promising future.
With various schemes and grants, how will you know which one is applicable to your upcoming venture?
Startup SG Founder
Eligibility for startups:
- First-time entrepreneurs who are Singaporeans and Permanent Residents
- Must hold or propose to hold at least 30% equity
- The company must have at least 51% of local shareholding
This grant provides mentorship and startup capital of up to $30,000 for the first time entrepreneurs. It will match $3 to every $1 raised by the entrepreneur. This means that you can raise up to $30,000 to get the maximum possible funds from this grant.
SPRING has selected Accredited Mentor Partners (AMP) to choose the qualifying applicants who have unique business concept, feasible business model, string business management and potential market value.
The application will not be granted if the company is receiving funds from another government organisation.
If you want to apply, you must submit a duly accomplished application form, your ACRA e-statement, and business plans or your management teams’ CVs.
Upon successful application, startups will receive learning programs and networking contacts in addition to their funds.
Startup SG Tech
Eligibility for startups:
- Startup applicants are registered or incorporated in Singapore
- The company must be an SME. This means that I must have a Company Group annual sales turnover of less than S$100 million and at least 30% local shareholdings.
- The company must not be older than 5 years at the date of application.
The Startup SG Tech is created for startup with promising proprietary technology solutions and scalable business model. The funds from this grant can be given at the startup’s early stage for the commercialisation of proprietary technology.
This grant will ask for an equity component for SPRING. This is to keep the company towards the growth-oriented mindset and cultivate greater financial discipline.
Unlike the Startup SG Founder, you may apply to Startup SG Tech even if you already received a grant from another government organisation. This is possible if the funding is for a different project. And even if you get rejected, you can still reapply provided that you are able to address the highlighted reasons for rejection.
Once approved, you will receive funds upon the completion of each milestone. Starting from the Pre-Requisite milestone, 20% of the grant will be released to help you kick-start your project. Then the rest of the funds will be released depending on the verified completion of milestones.
Startup SG Equity
Eligibility for startups:
- A Singapore-based company
- Have paid-up capital of at least $50,000
- Incorporated for not more than 5 years
- Can prove substantial innovative and intellectual content of service, products or application
- Have identified a third-party
With Startup SG Equity, the government will co-invest with an independent third party investor to help a startup.
This grant focuses on three sectors: Urban Solutions and Sustainability, Health and Biomedical Sciences, and Advanced Manufacturing and Engineering.
To apply for this grant, you must email your business plans and financial statements to firstname.lastname@example.org. You might also have to provide additional requirements such as Business ACRA and background of potential third party co-investor if applicable.
Startup SG Accelerator
This grant does not directly fund the startups. Rather, it funds the business incubators which will help create a sturdy startup.
With incubators and accelerators, they can get funds and non-financial support to nurture startups and help them have the best outcome.
The Startup SG Accelerator may cover three different types of costs:
- Programmes to nurture startups which can help develop new services or products and improve market access.
- Funds for hiring mentors and experts to have management and technical guidance for startups.
- Operating expenses (partial) as determined by SPRING Singapore.
Startup SG Talent
The Startup SG Talent is expected to create a more conducive environment and better leverage for the innovative startups to market globally. Under the Startup SG Talent are three schemes:
- EntrePass is a scheme which allows foreigners to jump start their startups in Singapore. The startup applying for EntrePass must not be older than six months and has at least $50,000 in paid-up-capital.
- Technology for Enterprise Capability Upgrading (T-UP) funds as much as 70% of the secondment costs. This means that it can support researches of scientists and engineers in partnership with Agency for Science, Technology and Research’s (A*STAR).
- SME Talent Programme (STP) for Startups facilitates internship between students and technology-based local startups. Those schemes foresee the startup needs for recruitment, retention and talent management through the development of human capital capabilities.
Startup SG Loan
Startup SG Loan has Government-funded loans for startups. These loans are for SMEs which need funds for equipment financing, working capital or trade financing. There are two types of loans under this scheme:
- SME Micro Loans are for startups who need working capital financing of up to S$100,000. The company must have not more than 10 employees.
- SME Venture Loan is for high-growth companies who want to expand their business. They can get as much as S$5,000,000.
However, what if you need funds for a sudden need. Can you wait for an indefinite time for the grant to be processed?
We all know time is money. If you need additional funding right now, you can get a loan from Cash Mart. Call Cash Mart today at +65 6397 4111 or visit the office in Balestier Road to know more.
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