With pro-business legislation, affordable tax rate, with almost no bureaucracy, world-class infrastructure, and easy access to global talents, Singapore has pushed the nation to become among those places on Earth where doing business is more than encouraged. Even foreigners can easily start their entrepreneurial journey in Singapore.
What’s more, you may be surprised to find out that there are many grants and funding that entrepreneurs can have access in Singapore.
Types of Funding Available for Start-Ups in Singapore
There are many types of funding available in Singapore, including government funding and private funding.
There are various type of government funding, ranging from equity financing schemes, cash grants, business incubation schemes, debt-financing schemes, and tax incentives. Each of these is handled by a different government agency and each of them has its own advantages and disadvantages.
Equity Financing Scheme Singapore is the collaboration of the government and a third-party investor that funds entrepreneurs to start a business in Singapore in exchange for a share for the business. This option is good for start-ups who need more capital, and it is ideal for those who are in the early stage of their development.
There are multiple such schemes available in Singapore and that the most popular ones are the following: the SPRING SEEDS (which will invest a maximum of S$1 million and S$300,000 on the first round), the Business Angels Fund Scheme (which can invest up to S$1.5 million along with a pre-approved angel investor) and the Early-Stage Venture Funding Scheme (which can raise a maximum of S$10 million from various investors).
Business Incubation Scheme
You can also apply for a business incubation scheme. This type of funding will be suitable for those entrepreneurs who are also looking for guidance, and not just for funding. In most cases, such a scheme will be able to offer low-cost operating space and inexpensive services, as well as business guidance and financial assistance.
Also, debt-financing schemes are available for those entrepreneurs who do not want to share the company with anyone. However, this type of financing can be risky, and you should be incredibly careful to always make the payments in time