Promising start-ups in Singapore can now apply for special funding earmarked for them in the Fortitude Budget, to help them sustain innovation, gain access to credit, and bridge the financing gap they face amid the Covid-19 pandemic.
The Special Situation Fund for Start-ups (SSFS) will be administered by EDBI, the corporate investment arm of Economic Development Board, and Seeds Capital, the investment arm of Enterprise Singapore, said both organizations in a joint statement on Friday.
Under the scheme, EDBI and Seeds Capital will invest in selected start-ups with private sector co-investors in a one-to-one ratio.
The SSFS will support early to late-stage innovative start-ups, though EDBI will focus on late-stage start-ups with larger funding needs and a wider employment base, while Seeds Capital will focus on the early-stage start-ups.
Applications for the fund will be assessed on a case-by-case basis.
The start-ups should be incorporated as a private limited company with its headquarters and key value-added activities in Singapore.
EDBI and Seeds Capital are looking to start-ups from diverse sectors to apply.
“The start-ups should possess strategic capabilities such as technology and innovation competencies or sustainable competitive advantages that can contribute to Singapore’s national priorities”, they added.
The firms should also have substantial innovative or intellectual property content developed or owned in-house and be able to demonstrate a commercially viable business model.
In addition, they should be able to show what they have to offer, and their potential to scale up their businesses in their target customer segment and across international markets.
Other key attributes required include a committed and capable management team with relevant experience and business acumen, as well as strong corporate governance.