Funding for Start-Ups: Interesting Grants to Take Note
Singapore enjoys a favorable position as Asia’s business port to the world and is a great access point to some major economic citadels in the East. Aside from nurturing a steadfast political atmosphere and an aggressively growing economy, Singapore has an amazing pool of skilled manpower, cutting-edge infrastructure, and vigorous regulatory frameworks to sufficiently support any type of enterprise.
An amazing thing to note is that business owners are showered with many different types of financial grants to ensure that they have enough capital to start with or to expand their business further. Singapore research funding, for example, can go as far as matching like-minded businesses from overseas to advance robust industries like IT, medicine, and robotics.
Let’s take a look at some interesting financial assistance for start-ups in Singapore.
Private Equity Funding
In setting up a business, sometimes informal capitals received from friends or family members are just not enough, and the road to bank loans is a long and painful journey. If you don’t have enough financial resources, then private equity financing might be a good option for you. Your capital will come from private investors who are willing to financially support your business in exchange for capital gains and dividend returns. In this arrangement, the investors take all the risks in terms of loss in case the business fails. However, if it succeeds, the investors can reap fruitful returns, which are considerably higher than those from bank and loan interests.
Angel investors are affluent people who love to make high-risk investments in businesses that they believe to have great potentials. While some angel investors prefer to be passive, others can mentor and advise you along the way.
Unlike angel investors, venture capitalists do not only provide capital, but are also dedicated to rendering non-financial support to ensure business success. They are usually interested to invest in tech industries.
The Singapore government have rolled out a number of financial schemes and grants to aid potential start-ups to gain success in their enterprise.
Equity Financing Schemes
Certain government agencies have launched co-investing equity financing schemes with private investors to boost capital supplies for aspiring start-ups.
A number of government agencies offer cash grants to cover some portion of the needed capital. Research grants, for example, are allotted to encourage advancements in important sectors like medicine and tech innovation through research studies and feasibilities. A growing number of Singapore research grants are focused on commercialization of technological breakthroughs.
Business incubators are not only great sources of capital, but also offer a physical location for operation along with cost-efficient services like business coaching, staff training, and mentoring. The government can provide as much as 80% co-funding grant support to illegible start-up applicants. The incubators may or may not require equity share from the start-ups they are helping.
Tax Incentive Schemes
At the beginning of your start-up enterprise, it is a great advantage to know if you qualify for tax incentives and exemptions laid out by the government. Start-ups can even enjoy a full tax exemption on a specified term if qualifying criteria are met.
Being one of the best business-friendly countries in the world, Singapore has embraced promising business ventures both from local and foreign entrepreneurs. Choosing the right type of financial grant to your start-up venture project will greatly give you an advantage in this competitive business climate.