Singapore to invest $74m in local start-ups
Singapore’s government plans to invest S$100 million ($74 million) in Singapore-based start-ups and small and medium-sized enterprises (SMEs) in 2019, along with other measures aimed at promoting local businesses.
In his annual budget speech, Finance Minister Heng Swee Keat said the government will invest the capital through a new vehicle, the SME Co-Investment Fund III. The fund is part of the Co-Investment Programme (CIP), which was established in 2010 to enable SMEs and start-ups to access private investment. So far the government has invested S$400 million through CIP and mobilized an additional S$1.3 billion in private capital.
In addition to extending CIP, Heng announced the Enterprise Financing Scheme to consolidate the financing arrangements offered by Enterprise Singapore, a government agency formed last year to support local small businesses. Loans under the new program will cover trade, working capital, fixed assets, venture debt, mergers and acquisitions, and project financing.
Additional support will be provided for companies that have been incorporated for less than five years, with the government taking on up to 70% of the risk for bank loans to such businesses. It will also extend the SME Working Capital Loan program, which provides unsecured loans of up to S$300,000 to SMEs, until March 2021.
Along with these financial measures, the government plans to provide technical assistance to start-ups looking to achieve scale by linking them with public and private sector partners to help with innovating and commercializing technology. Enterprise Singapore will also establish innovation centers at local universities to promote aquaculture and sustainable energy.
Singapore has taken a number of measures to promote local businesses and foster innovation in the country. Initiatives include the Makara Innovation Fund, launched in 2017 with S$1 billion to invest in high-growth companies with strong IP and proven business models. In addition, last year the National Research Foundation launched a S$100 million fund to help start-ups commercialize cutting-edge technology developed via publicly-funded research in Singapore.
More on Southeast Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.