How to Apply for Startup SG Tech

In 2017, as a first step towards generating a strong brand identity for Singapore-based startups, the government unified all startup-relevant government schemes under an umbrella brand called Startup SG. 

It was aimed at creating a distinct identity and making it easier for startups to access and find areas of support. 

In 2018, it launched Startup SG Network for the country’s tech startup landscape, allowing local tech startups to put themselves out there and seize growth opportunities.

While it started with 6 schemes at its initial launch, it has since expanded its offerings to cater to different needs and groups. Startup SG has many schemes categorised as follows:

Under the schemes for startups and founders is Startup SG Tech, a grant scheme to accelerate the development of deep-tech innovations.

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What is the Startup SG Tech Scheme About?

The objective of the scheme is to drive the growth of startups based on proprietary technology and to foster the spirit of deep-tech innovation among startups. 

The grant offered to startups speeds up both the development and commercialisation of proprietary technology to promote the growth of innovative and scalable startup models. 

Under the scheme, qualifying companies may receive early-stage funding to help them develop and commercialise their innovations.

Related Read: 13 Startup Schemes and Grants in Singapore »

What is Proprietary Technology?

Proprietary technology refers to the collective mix of tools, systems, and processes of correlated connections. They may be obtained from:

• Public health institutes
• Institutions of Higher Learning (IHL)
• Research institutes

Ideally, proprietary technology should involve intellectual property (IP) or intellectual assets (IA) owned by the individual or startup.

Proof of Concept and Proof of Value

The scheme offers grants to support two stages of innovation projects – Proof of Concept (POC) and Proof of Value (POV). Depending on the stage of development, startups can apply for grants under the scheme.

The grant is capped at S$250,000 and S$500,000 for POC and POV respectively. 

In order to anchor the applicant’s commitment to the project, the scheme requires successful recipient companies to increase the paid-up capital by 10% and 20% of the grant for POC and POV respectively.

The grant amount is divided and disbursed in tranches upon achievement of specific pre-agreed milestones in the project. 

To begin with, upon reaching the pre-requisite milestones, 20% of the grant amount is disbursed to ease the cash flow of the company thereby enabling it to kick-start the project.

The scheme also includes an equity component whereby EnterpriseSG or its appointed nominee has the right to exercise a share subscription of 50% of the awarded grant; this is capped at 49% of the total shareholding of the company. 

The share subscription rights will be exercised when a qualifying equity financing round occurs. EnterpriseSG or its appointed nominee will seek to divest at the subsequent equity financing round.

Proof of Concept

This phase of a project involves the development of viable technological ideas/concepts. While the POC demonstrates the technical and commercial viability of an innovation, substantial development work is needed to prove that the innovation works. 

However, it does not include the preliminary experimental phase of research such as market or basic research, augmentation of technical or scientific knowledge or the development of ideas/hypothesis or research design.

Proof of Value

This phase of a project involves further development of an idea or innovation that has been proven to work. This is subsequent to the POC stage and may build on a working prototype, leading the startup to seek commercial validation by seeking investors and reference clients. 

The applicant must demonstrate business/entrepreneurial commitment and acumen to undertake the execution and commercialisation of the project.

The scheme supports research and innovation in deep technology sectors; therefore in order to qualify, the project must fall under one of the following areas:

Note: Innovation projects that fall outside the above sectors can still seek EnterpriseSG’s help to determine the eligibility for the grant.

Eligibility for Startup SG Tech

In order to qualify for application, the applicant’s innovation/solution must fulfil the following criteria

Your solution must:

• Clearly show how science/technology is administered
• Be a distinct or new and innovative technology
• Lead to or build on proprietary knowledge/IP
• Be commercially viable

As for the company, the following criteria must be fulfilled:

• Startup must be incorporated in Singapore within the past decade at the time of application and must have main R&D activities conducted in the country
• At least 30% local shareholding
• Company/Group turnover of not more than S$100 million
• Company/Group employment headcount of not more than 200 employees
• Company must not be a subsidiary of a corporate entity during incorporation

Application Process for Startup SG Tech

The application process involves 3 stages:

Stage 1 (Registration of Interest)

Interested applicants must submit a short summary of their project and its scope along with the completed Enterprise Singapore Startup SG Tech Registration of Interest Form and filling up the form on EnterpriseSG. 

After evaluation, Enterprise Singapore will notify you of your project’s eligibility for the grant.

Stage 2 (Application and Evaluation)

Eligible projects will be invited to submit a formal application comprising a detailed project proposal with a cost breakdown. 

Enterprise Singapore will evaluate the projects for their technical and commercial viability and the degree of novelty.

Stage 3 (Final Panel Evaluation)

Shortlisted applicants will make a final presentation to a panel of industry experts for evaluation. At this stage, an EnterpriseSG officer will work together with the business to prepare for the final presentation.

The panel consists of executives from MNCs, representatives from government agencies, venture capitalists, professors and researchers from IHLs.

The panel’s decision is final.

Processing Time for Startup SG Tech

The applicants are notified of the outcome at the end of each stage of evaluation for POC and POV. After registering your interest, it takes approximately 3 months, from full proposal submission, before the letter of offer of the grant is received.

Stage 2 proposals will be evaluated by external commercial and technology consultants. Their partners include:

• PUB
• IMDA
• A*STAR

For Stage 3, the final panel consists representatives in the tech startup ecosystem. They include:

• Industry executives
• Executives from MNCs
• Venture capitalists
• Professors and researchers from IHL
• Government agency representatives

The applicants must demonstrate entrepreneurial commitment to commercialise the innovation upon completion of the project.
Startups or entrepreneurs with foreign registered patents will be considered for the grant if they meet the eligibility criteria.

Likewise, foreign startups that are registered overseas but wish to apply for Startup SG Tech can do so.

However, they must meet the eligibility criteria and they are able to demonstrate economic value to Singapore.

Eligible applicants may directly apply for the POV stage funding provided their project meets the commercial scope of the POV.

If the applicant is in doubt about whether to apply for POC or POV, they can submit the Registration of Interest (ROI) form first, and leave the relevant field empty. 

An EnterpriseSG officer will be in touch after reviewing the ROI to advise which development stage to consider.

The project must not have commenced at the time of application; however, if the applicant wishes to commence work, the applicant may do so after submitting the application.

The applicants who choose to commence work prior to the confirmation of the grant are strongly advised to have other resources or financial sources as backup to pursue their project without interruptions, should their application get rejected.

Startup SG Tech Closing Note

The scheme is specifically designed to catalyse and democratise innovation as a growth strategy for small startups and young SMEs. 

The companies in this segment have a need to tap into disruptive technologies in order to gain competitive advantage and differentiation but have financial constraints. 

The scheme especially targets such companies and helps to enhance their innovation capabilities.  It is important to note that EnterpriseSG is also open to innovations that have potential qualitative value that cannot expressly be quantified.

The primary objective of the scheme is to groom technopreneurship to build a strong IP portfolio in Singapore. The scheme is testimony to Singapore’s receptivity to foreign startups that are committed to creating IP assets in Singapore.

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