Startup SG Equity
Topics To Be Discussed
Key Facts about the Startup SG Equity
The Startup SG Equity scheme is a key initiative under the Startup SG umbrella, designed to boost the growth of startups by encouraging private sector investments. Launched by Enterprise Singapore, the government agency championing enterprise development, the program aims to bridge the funding gap that often hampers early-stage startups. Focused on startups with intellectual property and expansive market potential, the program operates on two interconnected fronts:
- Co-Investment Modality: In collaboration with independent, qualified third-party investors, the government co-invests in eligible startups. This powerful partnership infuses startups with the financial backing necessary for growth and expansion.
- Fund-of-Funds Modality: The program strategically invests in select venture capital firms, establishing a fund-of-funds approach. This strategic allocation of resources multiplies opportunities for startups to access vital funding and expert guidance.
Key players including SEEDS Capital, SGInnovate, and EDBI work synergistically to orchestrate these initiatives, ensuring startups receive not only financial support but also strategic mentorship to thrive in the competitive startup ecosystem.
2. Digital or technology offering as a core business product;
3. Secure more than US$10 million in investment funding in the past 36 months.
Benefits of the Startup SG Equity
The scheme offers an array of benefits that make it an attractive proposition for startups and investors alike.
- Co-Investment Modality. Under the co-investment modality, Startup SG Equity has different investment parameters for general tech and deep tech startups. The key differences between general tech and deep tech startups include the level of technological innovation, the extent of R&D involved, and the potential impact on industries and society. General tech startups build upon existing technologies to create practical solutions, while deep tech startups are characterized by a business model centered on fundamental, proprietary technologies, research, or hardware, necessitating substantial developmental efforts (such as product design, prototyping, product testing, clinical trials, etc.) before the product becomes market-ready. The investment cap for each general tech startup is set at S$2 million, while for deep tech startups, the cap is raised to S$8 million.
- Fund-of-Funds Modality. Adopting a fund-of-funds strategy, eligible venture capital firms will be provided with funding intended for subsequent investment into qualifying startups. The specific investment cap for this approach is not predetermined and will be determined on a case-by-case basis.
Eligibility Criteria for the Startup SG Equity
The Startup SG Equity program welcomes applications from both startups and investors, each with their distinct set of eligibility criteria.
Startups aspiring for government co-investment through Startup SG Equity should fulfill the following prerequisites:
Operate as a Singapore-registered company with core activities conducted within the nation's borders.
Have been established as a Private Limited company for a duration of fewer than 10 years.
Possess a minimum paid-up capital of $50,000.
How to Apply for Startup SG Equity
Applying for the Startup SG Equity scheme involves several key steps:
How We Can Help with the Startup SG Equity
This series of articles regarding Singapore government incentives was prepared by CorporateServices.com, a leading Singapore-based corporate service provider. We offer a range of services for private limited companies in Singapore. Our team of experienced experts provides Singapore company registration and other incorporation-related services through our cutting-edge online platform.
Contact us if you need assistance with setting up a new Singapore company or would like to transfer the administration of your existing company to us.