Innovation & Technology Transfer Office

Type

Scope of Assistance

Criteria

Organisation & Contact

Startup Enterprise Development Scheme (SEEDS)

SEEDS provides equity financing for startups at the seed stage of enterprise formation.

The startup and its 3rd party investor(s) jointly apply to EDB for co-funding. If the application is successful, EDB will match the 3rd party investor’s investment and take an equity interest in the startup.

Amount of funding:
Under the S$50 million SEEDS fund, EDB will match a dollar for every 3rd party private sector cash injection, up to a maximum sum of S$300,000. The minimum investment by the 3rd party investor(s) shall be S$75,000.

Disbursements:
Upon approval by EDB, EDB will disburse the funds in the form of paid up capital in 2 equal tranches.

Divestment:
EDB shall exit from the investment at the earlier of the following:

• Initial Public Offering of the startup; or
• Sales, merger or acquisition of the startup; or
• Such time when a 3rd party cash offer is received by EDB for the purchase of its shares prior to the 5th anniversary of EDB’s investment in the company; or
• If the above exit points have not occurred at the end of the five years, EDB will review the exit strategies.
• EDB reserves the right to choose its exit strategy.

Qualifying startup company:

1. Any legal entity that has secured total debt and equity financing of less than S$500,000 previously.
2. Should be engaged in the development of new or better products, processes and applications in the manufacturing and services sectors. Innovation can be in the form of technology and/or business models.
3. Must be incorporated in Singapore and would be carrying out its core activities in Singapore.
4. Can be owned by local or foreign shareholders, subject to the provisions of the Companies Act (Cap.50).

Qualifying 3rd party investor(s):

1. Can be either corporate or individual investor(s).
2. At least one corporate investor must be a legal entity with a minimum paid-up capital of S$500,000.
3. Individual investor must meet the following criteria:

• Possess management experience, business contacts or technical skills that can add value to the startup
• Not be related to the founder(s) of the startup
• Not be undischarged bankrupts
• Not have criminal records
• Maintain arms length transaction with the founder(s).

Qualifying business activities:

• Substantial innovative or intellectual content
• High growth potential
• Scalability for the international market

Singapore Economic Development Board
Technopreneurship & Venture Capital Group

250 North Bridge Road
#24-00 Raffles City Tower
Singapore 179101

Tel: (65) 6336 2288
Fax: (65) 6334 2767
E-mail: seeds@edb.gov.sg

Website:
www.sedb.com

Type

Scope of Assistance

Criteria

Organisation & Contact

Growth Financing Programme

The Programme is designed to support early stage, Singapore-based growth companies that have the potential to become globally competitive enterprises.

Both EDB and the third-party investors will take equity stakes in the company in proportion to their investments.

Every S$2 raised by the growth company from third-party investors will be matched by S$1 from EDB, subject to a maximum of S$1,000,000. Minimum investment from third-party investors is S$500,000.

Disbursements:
EDB will disburse the funds in the form of paid up capital upon receipt of documentary proof that the 3rd party investor(s) has or have made their investment.

Divestment:
EDB will exit from the investment at the earlier of the following:

• Initial Public Offering of the growth company.
• Sales, merger or acquisition of the growth company.
• Such time when a 3rd party cash offer is received by EDB for the purchase of its shares prior to the 5th anniversary of EDB’s investment in the company.
• If the above exit points have not occurred at the end of the five years, EDB will review the exit strategies.
• EDB reserves the right to choose its exit strategy.

Qualifying companies:

1. Those engaged in the development of new or better products, processes and applications in the manufacturing and services sectors.
2. Innovation can be in the form of technology and/or business models.
3. Those incorporated in Singapore and carrying out core activities in Singapore. If the company globalises, the headquarters functions and the highest value-added functions, including but not limited to intellectual property and top management, should reside in Singapore.
4. Where product development has been completed with early customer and revenue results.
5. Foreign ownership of the company is allowed, subject to the provisions of the Companies Act (Cap.50).

Qualifying 3rd party investor(s):

1. Either corporate or individual investor(s), preferably professional investment entities that have demonstrated a track record in venture financing in their area of expertise.
2. Investor(s) must not have prior interests in the growth company.
3. At least one corporate investor must be a legal entity with a minimum paid-up capital of S$500,000.
4. Individual investor must meet the following criteria:

• Possess management experience, business contacts or technical skills that can add value to the growth company.
• Not be related to the founder(s) of the growth company.
• Not be undischarged bankrupts.
• Not have criminal records
• Maintain arms length transaction with the founder(s).

Qualifying growth company’s business activities:

• Substantial innovative or intellectual content
• High growth potential
• Scalability for the international market

Singapore Economic Development Board
Technopreneurship & Venture Capital Group

250 North Bridge Road
#24-00 Raffles City Tower
Singapore 179101

Tel: (65) 6336 2288
Fax: (65) 6334 2767
E-mail: seeds@edb.gov.sg

Website:
www.sedb.com

Type

Scope of Assistance

Criteria

Organisation & Contact

Venture Investment Support for Startups (VISS) Fund

VISS fund co-invests with venture capital funds, business angels and/or corporate investors in each deal.

The S$50 million VISS fund is to support young local startups and to attract foreign startup companies of strategic value to Singapore, through co-investments in seed and early stages.

TIFV makes early investments into startups through a well-guided investment process involving due diligence and committee approval. It also works closely with potential and eventual portfolio companies in their business planning and positioning. It further facilitates their fundraising or corporate partnership by linking them with potential partners, respectively, within global network of connections.

TIFV invests into seed to early-stage companies across a broad spectrum of technologies.

TIF Ventures Pte Ltd
250 North Bridge Road
#29-04 Raffles City Tower
Singapore 179101

Tel: (65) 6333 1211
Fax: (65) 6337 8839

Website:
www.tifventures.com