Starting or growing a business in Singapore requires substantial financial support. Fortunately, Singapore offers a wide range of financing options tailored to businesses at various stages, from early startups to established enterprises.

This guide explores the primary financing options available, including government grants, venture capital funding, angel investments, incubators, and specialized funding for tech startups.

Government Grants for Businesses in Singapore

Singapore provides various grants to support startups and small businesses, particularly in sectors focused on innovation and technology.

Startup SG Founder

The Startup SG Founder grant offers first-time entrepreneurs initial funding to bring their ideas to life. This grant provides:

S$50,000 in startup capital with a required S$10,000 co-matching fund
Mentorship and guidance to help startups navigate early challenges

Eligibility for Startup SG Founder

Applicants must be first-time entrepreneurs who are Singapore Citizens or Permanent Residents.
The business should have at least 51% local shareholding and be less than 6 months old at the time of application.
The startup must have an innovative idea and a feasible business model.

This grant serves as an ideal launchpad for new entrepreneurs, offering both financial and advisory support to help them grow.

Startup SG Tech

The Startup SG Tech grant funds businesses developing innovative technologies, with two main funding categories:

Proof-of-Concept (POC): Up to S$250,000 for projects validating an idea.
Proof-of-Value (POV): Up to S$500,000 for projects demonstrating product value.

Industries Supported by Startup SG Tech

This grant is available for companies in high-impact sectors such as biomedical, clean technology, and information and communication technology (ICT).

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports businesses looking to upgrade or expand. The EDG offers:

Up to 70% funding support for small and medium enterprises (SMEs)
Up to 50% support for non-SMEs

Businesses can use this grant for upgrading operations, innovating processes, or expanding overseas.

Venture Capital Funding in Singapore

For businesses aiming for rapid growth, venture capital (VC) offers substantial funding across different stages. Here’s a look at typical investment stages and major players in Singapore’s VC ecosystem.

Investment Stages

Seed Funding: Typically ranges from S$500,000 to S$2 million for early-stage businesses developing a minimum viable product (MVP).
Series A: Ranges from S$1 million to S$5 million to scale business operations.
Series B and Beyond: Provides growth capital, with funding levels between S$5 million and S$50 million.

Major Venture Capital Firms in Singapore

Jungle Ventures: Invests between S$500,000 and S$20 million and focuses on high-growth potential startups.
Monk’s Hill Ventures: Typically invests S$1 million to S$3 million in Southeast Asian startups.
Quest Ventures: Focuses on early-stage funding and often supports businesses aiming to solve pressing social issues.

VC funding provides not only capital but also strategic support, helping startups gain traction in competitive markets.

Angel Investment Networks

Angel investors in Singapore are private individuals who invest in startups, offering both capital and industry experience. Angel funding is particularly valuable for startups seeking mentorship and financial support in their early stages.

Key Features of Angel Investments

Investment Range: Angel investments generally range from S$100,000 to S$1 million.
Mentorship: Many angel investors offer business advice, helping startups navigate challenges and make valuable connections.

Popular angel networks in Singapore include Business Angel Network Southeast Asia (BANSEA), which connects startups with individual investors and provides access to expertise and business insights.

Incubators and Accelerators

Singapore hosts several incubator and accelerator programs that provide funding, mentorship, and resources to startups. These programs typically focus on specific industries and provide hands-on support to help startups grow.

Notable Incubator and Accelerator Programs

Spaze Ventures: Specializes in early-stage funding and incubation support.
JCS Venture Lab: Supports technology startups with funding and mentorship.
NUS Ventures: Associated with the National University of Singapore, focusing on innovative student-led startups.
The FinLab: A UOB initiative supporting tech startups with growth potential in the financial and sustainability sectors.

Incubators and accelerators provide resources that go beyond funding, such as workspace, technical support, and a community of like-minded entrepreneurs.

Deep Tech Funding: Startup SG Equity

For businesses focused on deep technology and advanced innovation, Startup SG Equity offers substantial co-investment opportunities. This program pairs government funding with private sector investment, reducing financial risk and encouraging the development of high-tech solutions.

Funding Structure

Deep Tech: The government co-invests 70% up to the first S$500,000, with a 1:1 matching available up to S$4 million.
General Tech: Provides 70% co-investment up to S$250,000, then 1:1 matching up to S$2 million.

Eligibility Requirements

Companies must have innovative technology or intellectual property (IP) with clear market potential.
Businesses must secure third-party investment and cannot be a subsidiary or joint venture.

This deep tech funding model supports Singapore’s goal to become a global leader in technology and innovation by encouraging private sector investments in groundbreaking technologies.

Frequently Asked Questions

1. What are the main financing options for startups in Singapore?

Singapore offers various financing options, including government grants (e.g., Startup SG Founder, Startup SG Tech), venture capital funding, angel investments, and incubator programs.

2. How does the Startup SG Founder grant work?

The Startup SG Founder grant provides S$50,000 in startup capital for first-time entrepreneurs, with an additional S$10,000 co-matching fund requirement and includes mentorship support.

3. What is the difference between Startup SG Founder and Startup SG Equity?

Startup SG Founder is a direct grant for first-time entrepreneurs.
Startup SG Equity involves government co-investment with private investors, supporting companies focused on tech innovation with global market potential.

4. Can a non-technology startup qualify for Startup SG Equity?

No, Startup SG Equity primarily targets technology-driven businesses with IP and high growth potential. Non-tech startups typically look to Startup SG Founder or other grants for funding.

5. How can I connect with angel investors in Singapore?

You can connect with angel investors through networks like BANSEA or by joining startup events where angel investors often seek promising new ventures.

Conclusion

Singapore’s financing ecosystem provides a robust range of options to support businesses at all stages, from ideation to international expansion. From government grants to private investment, these resources empower entrepreneurs to transform their innovative ideas into sustainable ventures. By understanding and leveraging these financing options, startups can maximize growth potential and navigate the early stages with a solid financial foundation.

Carefully selecting the right mix of grants, VC funding, and accelerator programs can make a substantial difference in a startup’s journey, contributing to Singapore’s reputation as a thriving business hub.