5 Incubator Schemes: Best Ways to Fund Your Start-up Business Singapore
Start-up culture is very prominent in Singapore, the land of endless business opportunities. The previous trend of seeking a decent job in multinational companies is shifting to entrepreneurship. It is worth mentioning the contribution of its proactive government in bringing this change. The government pumps tons of money into funds and grants that aim to help budding entrepreneurs who want to open a company in Singapore. The incubator schemes available in Singapore are a few of its instances.
Apart from access to funding, Singapore incubator schemes are essential means for nascent business owners who are seeking for mentoring and networking opportunities for their venture. These schemes are perfect for start-ups that need continual guidance and mentoring along with financial aid. Here is a list of latest incubator schemes available for a start-up business. Make yourself familiar with the schemes well before embarking on company incorporation Singapore.
Incubator Development Program (IDP)
SPRING, Singapore, oversees the Incubator Development Program (IDP) and provides up to 70% grant support to the incubators and venture accelerators to step up their capabilities and programs to assist and guide innovative start-ups.
IDP may cover the cost of developing programs, hiring mentors, salaries of incubation team, marketing costs, events etc.
IDM Jump-start and Mentor (i.JAM)
The IDM (Interactive Digital Media) Jump-start and Mentor (i.JAM) is administered by Media Development Authority. The program aims to encourage innovation and nurture start-up entrepreneurship in the interactive digital media sector in Singapore. Precisely, it will support a start-up business with path-breaking ideas that can be further developed to advanced products and services.
It is a scheme that allocates the government money to start-ups through appointed incubators. The funds are doled out in two tiers. First, the start-up will receive up to S$50,000. If all criteria of I.JAM are met successfully, then the start-up can claim the tier two funding of S$200,000.
NRF Technology Incubation Scheme (TIS)
The Technology Incubation Scheme (TIS) is an initiative of National Research Foundation (NRF). Under this scheme, NRF will co-invest up to 85% with a cap of S$500,000 per company. The remaining 15% will be invested by the Technology Incubator. Apart from contributing to the fund, the Technology Incubator is required to provide regular guidance and mentoring to the start-up.
As a part of the incentive, the Technology Incubator can buy back NRF’s equity stake in the company within three years by repaying the capital plus interest.
Incubator for Disruptive Enterprises and Start-ups (IDEAS) Fund
IDEAS is an incubator fund for start-up companies that are in the nascent stage. The fund was launched by Innosight Ventures Pte. Ltd. and the National Research Foundation (NRF). Under this scheme, start-ups with robust innovative ideas will be identified and offered mentoring during the initial phase of the start-up companies including funding assistance. NRF supports the Technology Incubator and co-invest up to 85%.
Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech)
Fast-Tech is an incubator grant supported by Environment and Water Industry Board Office, Singapore. It was launched with an aim to help start-ups co-share the cost and risk of commercialization of new environmental and water technologies.
Start-ups which have the breakthrough technical ideas can avail funding support of up to S$500,000 per company or 85% of the total cost, whichever is lower. All Singapore-incorporated companies which are less than five years old are eligible to apply for the Fast-Tech scheme.
Despite having robust innovative idea on technologies, many aspiring entrepreneurs fails to promote and develop their ideas just because of lack of funds and guiding assistance. Singapore incubator schemes are the perfect ways to address such problems.