Singapore supports med-tech accelerator program
Spring Seeds Capital, an investment arm of government-backed Spring Singapore, has launched an initiative that could channel up to S$60 million ($47 million) into local medical technology start-ups.
According to a statement, the government will invest in $30 million, with an equal sum to be raised by two new-established accelerators - Zicom MedTacc and Med Tech Alliance. The accelerators, which are backed by established corporate players in the medical technology sector, will co-invest in promising medical technology start-ups as well as providing mentorship and network access.
"Entrepreneurs in the medical technology field are often technically and scientifically proficient, but they may lack the know-how and support in developing a market-ready product in this highly complex and regulated environment," said Tan-Kai Hoe, CEO of Spring Singapore.
Zicom MedTacc, which is looking to invest in 4-10 early-stage med-tech start-ups over the next four years, is a wholly-owned subsidiary of Australia-listed industrial equipment manufacturer Zicom Group. Med Tech Alliance comprises two corporate investors - Accuron Technologies and Greatbatch - and Yoh-Chie Lu, executive chairman of Biosensors International.
Spring Seeds Capital currently manages three funds: the Spring Start-up Enterprise Development Scheme, the Business Angel Scheme, and the Sector Specific Accelerator (SSA). The $30 million is the second tranche of funding under the SSA program, after $40 million was committed in 2011.
In recent years the government has introduced several VC funding initiatives as part of its ambition to turn Singapore into a technology hub for Southeast Asia. In April, it committed a total of S$60 million to six local venture capital firms. This is the second batch of funds supported through the Early Stage Venture Fund (ESVF) initiative, which was first introduced in 2009 and run by the National Research Foundation (NRF).
The capital is intended to facilitate S$120 million in VC fundraising, with the government contribution matched on a 1:1 basis by other investors. In May, Monk's Hill Ventures, one of the six received funding from the government, launched a S$100 million fund to support the growth of start-ups in Southeast Asia.
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