Singapore Startup Grants: A Guide to Get Funding

List of Grants Available to Singapore-Based Startups

The following is a brief overview of available schemes and grants startups can apply for to receive assistance in business growth.

1. Startup SG Founder

Under Enterprise Singapore, the Startup SG platform provides first-time entrepreneurs access to local support schemes. One of the six Startup SG pillars, Startup SG Founder is for first-time entrepreneurs, providing mentorship, and a startup capital grant.

Amount Available:

Maximum value of $30,000 available through co-matching agreement (matching $3 for every $1 raised by the entrepreneurs).

Requirements:

• Applicant must be a Singapore Citizen or Singapore Permanent Resident
• Applicant must hold at least 30% of shares in the company
• Company must hold at least 51% local shareholding
• Company should not be incorporated for more than six months at the time of application
• Core business operations conducted predominantly in Singapore
• Applicant must not have any previous registered business entity or received any other government organisation funding
• Applicant must be the key person in making decisions in the company

2. Startup SG Tech

Also under Startup SG, this grant is for tech startups, providing successful applicants with early-stage funding for commercialisation of proprietary technology.

Amount Available:

Apply for either;

• Proof of Concept (POC) Grant of up to $250,000 if the project is still at conceptualisation stage (technical/scientific viability of concept yet to be tested)
• Proof of Value (POV) grant of up to $500,000 for developing a working prototype (The concept has technical/scientific viability)

Requirements:

• Core startup operations conducted predominantly in Singapore
• Registered for less than five years at the time of application
• At least 30% local shareholding
• Group annual sales turnover not more than $100 million or group employment size of maximum 200 employees.

1. Enterprise Development Grant (EDG)

Managed by Enterprise Singapore, the grant supports projects that help startups in strengthening business foundations, improving productivity, innovation, and expanding into overseas markets.

Amount Available:

Depending on whether you are a Small Medium Enterprise (SME), the grant covers 30-70% of qualifying project costs.

Requirements:

• Startup registered and operating predominantly in Singapore
• At least 30% local shareholding
• In a financially viable position to start and complete project

2. Productivity Solutions Grant (PSG)

Also managed by Enterprise Singapore, the grant aims at supporting companies looking into taking up IT solutions and equipment to improve current business processes and productivity.

Amount Available:

Covers up to 70% of costs from investing in government-approved long-term technology solutions (e.g. CRM and HRM Systems).

Requirements:

• Startup registered and operating predominantly in Singapore
• Purchase/lease/subscription of IT solutions or equipment must be used in Singapore
• At least 30% local shareholding (or group annual sales turnover not more than $100 million or group employment size of maximum 200 employees)

3. VentureForGood (VFG) Grant

Provided by the Singapore Centre for Social Enterprise (raiSE), this grant is accessible to both new and existing social enterprises who need funding to start up or expand business operations.

Amount Available:

Up to $300,000.

Requirements:

• Registered/intend to register under Companies Act or Co-operative Societies Act
• Incorporated company (if not incorporated at point of application and in the process of prototyping, partnership with relevant social service agency and/or validation with intended beneficiary groups should be shown)
• Registered as raiSE member at the point of grant disbursement
• The social enterprise should address local social gap/need

4. P-Max Scheme

An initiative by WorkForce SG, this aims to match hiring startups/SMEs with job-seeking professionals, managers, executives, and technicians (PMETs). PMETs will be vetted then placed into suited positions at startups by P-Max Programme Managers, and attend 2-3 day workshops. After which, P-Max Programme Managers will follow up and monitor the performance of newly trained PMETs for up to 6 months.

Amount Available:

A one-off grant of $5000.

Requirements:

• Company needs to to complete 6-month follow-up and retain new hires successfully
• Registered or incorporated in Singapore
• At least 30% local shareholding
• Group annual sales turnover not more than $100 million or group employment size of maximum 200 employees
• Offer PMET job vacancies that pay a gross monthly salary of a minimum $2,500, and/or have hired a PMET within the last three months (i.e 90 days) prior to enrolment into the programme and paying the aforementioned salary.

5. Business Improvement Fund (BIF)

The BIF is offered by the Singapore Tourism Board and is targeted towards firms in the tourism sector through encouraging technology innovation along with adopting new business models and processes to improve productivity and competitiveness.

Amount Available:

Successful Startups/SMEs can receive funding support of 70% of qualifying costs, which include;

• Training Costs
• Hardware and software costs
• Internal manpower costs
• Travel costs
• Third-party project-related costs

Requirements:

• Singapore registered company that is a
• Tourism company taking on capability development initiatives
• Technology company creating innovative technology products and services for tourism businesses.

Conclusion

Startups in Singapore can apply for and enjoy the benefits of many of the schemes detailed. Alongside these grants, businesses can also enjoy benefits available to all companies, such as low corporate tax rates, tight intellectual property rights standards, skilled workforce, and good connectivity to emerging markets in Asia.

There’s a reason why Singapore is in the top 5 as one of the “Most Business Friendly Countries”. If you are thinking of starting a business, it’s safe to say that Singapore is the right place to be for you to build your dream company.