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Through the scheme, the Singapore government aims to attract more private-sector investments into domestic startups with intellectual property and global market potential.
Fremont, CA: Singapore has set aside an additional S$300million (U.S. $ 215.4) under the Startup SG Equity scheme to strengthen and support its deep-tech startups in the country, and to encourage investments into such companies.
Singapore Government invites qualified third party investors to co-invest into eligible startups through the Startup SG Equity scheme. Through the scheme, the Singapore government aims to attract more private-sector investments into domestic startups with intellectual property and global market potential.
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"These startups need larger investments, longer gestation periods and face higher risks," deputy prime minister and finance minister Heng Swee Keat said in his budget speech.
Singapore government has appointed SGInnovate and Seeds Capital to manage the funds under Startup SG Equity, which presently has the investment cap of S$4 million in deep-tech startups. The deep-tech startup includes the companies operating in areas such as medtech and pharmabio, advanced manufacturing, and agri-food tech.
The government expects the scheme to attract more than S$800 million (US$574 million) of funding from private investors over the next ten years. "This will give deep-tech startups better access to capital, expertise, and industry networks," Heng added.
The Singapore Government has also dedicated S$8.3 billion (US$6 billion) additional funding over the next three years as a part of Singapore's Transformation and Growth strategy. The strategy has three key objectives: deepening enterprise capabilities, developing Singapore's people, and enabling stronger relationships.
A recent report released by SGInnovate says that the countries aiming to develop their own deep-tech sectors are unable to flourish because of the lack of concerted effort to push the ecosystem forward. Singapore government needs to strengthen and improve initiatives and programs that are already developed and are in place, the report said.
"The next phase of growth is outside of Singapore. It is no longer just about the ecosystem here, but how to help scale our startups quickly and go global," said Edwin Chow, assistant CEO for innovation and enterprise at Enterprise Singapore.
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