What Are the Grants for New Start-Ups?

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.

Government 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

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.

Debt-Financing Schemes

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

Government Cash Grants Available in Singapore

As an entrepreneur, you can also have access to various Singapore government grants. Most often, these are given to businesses that support innovation, development, and social causes. Also, in most cases, they cannot cover the entire needed capital of the business, so you will have to pitch in as well. There are, again, many types of cash grants available and each of them has its own eligibility criteria. For instance, there is the ACE Start-Up Scheme, which will give the entrepreneur S$7 for every S$3 he/she manages to raise, and this can go up to S$50,000 (and for, certain ventures, ACE will be able to give S$3 for every S$7 when the maximum of S$50,000 is reached as well).

PIC

Another popular funding scheme offered by the Singaporean government is PIC (Productivity and Innovation Credit). If you apply for this scheme for your SME, you get a chance of receiving one of the following benefits: 400% tax deduction allowances or receive a 60% cash payout if you invest in one of the 6 qualifying activities. These activities include the training of your SME’s employees, purchasing/leasing of IT and automation equipment, acquiring in-licensing intellectual property rights, registering trademarks and patents, researching, or developing activities, or designing projects that will be approved by the Design Singapore Council. You can be eligible for this funding scheme if you are the owner of a Small or Medium Enterprise and you can qualify the expenditure between the Years of Assessment (2011 to 2015).

Technology Enterprise Commercialization Scheme

Further on, you may want to apply for a Technology Enterprise Commercialization Scheme. This scheme is aimed at entrepreneurs who focus on the technology sector of the economy and they are of two types. The first type is addressed to businesses who want to develop proprietary ideas in the stage of conceptualization (and they can get up to 100% of the qualifying costs as long as they are under S$250,000). The second type of such scheme is addressed to those who want to do further research and development on a project that is related to technology (and they can get up to 85% funding as long as the project is under S$500,000).

In addition to these two types of cash grants, you should know that there are many other ones available and that if you do your research there is a high chance that you will find one whose eligibility criteria you can meet. Make sure to be thorough in your research and make sure to have all the paperwork in order and you have great chances of succeeding.