StartUp SG Founder Grant: What is it and who is it for?

After attending several venture builder and start up events, many budding entrepreneurs know of the StartUp SG Founder Grant, but not many really understand it or the process to apply for it. We hope this article can shed some light about it. The article will be heavily summarized using some assumptions as we find that grant articles can be too overwhelming due to excessive details. We are happy to address any enquiries through consultant@vcg.com.sg if you should have any.

What is the Startup SG Founder Grant?

The Startup SG Founder Grant is an Enterprise SG initiative designed to support first-time entrepreneurs in Singapore. It provides mentorship and financial support. 

Grant Quantum and Use

ESG will support new applicants on a 1 to 1 support ratio, from S$20,000 to S$50,000. This means that your company's paid-up capital in ACRA must equal the amount of support by end of the project period. At point of application, company must show at least 50% of the required paid-up capital, and 100% by end of project.

Grant is disbursed over two tranches: The first after successful application, and the second after achieving fulfilment of all business milestones.

The grant should be used for achieving the business milestones set out in the application, which includes business development and manpower. However, it must not be used to pay off any loans.

Eligibility Criteria:

• At least TWO Singapore Citizens or PR applicants; and both are key decision makers.

• The main applicant must be a first-time founder so he/she must not own, or have owned, a business entity incorporated more than six months. This applicant needs to hold at least 30% equity of the company. The second applicant CAN be an experienced business owner.

• Entity must be a private limited company and incorporated within SIX MONTHS at point of application to the AMP.

• The business idea must not be in excluded categories such as cafes, bars, gambling, employment agencies etc.

Application Process

Fig 1 shows the application process.

Applications must first approach a relevant Accredited Mentor Partner (AMP), who will assess the business concept, recommend the total grant quantum and business milestones. The AMP may offer to take up equity by contributing paid-up capital if they assess the company to have good potential. The list of AMPs can be found here.

The AMP will also assess if you require to undergo Entrpreneurship Training, which covers the fundamental frameworks and processes of entrepreneurship. You may be exempted if you have prior entrepreneurship experience (with supporting documents). The training is not covered under the grant, but applicants can use SkillsFuture Credits to attend relevant courses. 

Fig 1. Image from Startup SG

If the AMP is satisfied with the company's profile and business case, the AMP will then issue a Letter of Recommendation, which the company MUST submit together with their application to Enterprise SG for consideration. Another important component is the pitch deck with important milestones, which the AMP will advise. Alternatively, Valkyrie Consulting Group can collaborate with your to create a compelling and bespoke deck to improve your application outcomes.

If the grant is awarded, the AMP will work closely with the startup company for the grant period (at least 12 months) by providing mentorship and to track the progress on behalf of Enterprise SG. Once the company achieves all the milestones, they may apply for the second tranche of disbursement with all supporting documents. Do remember to ensure that the paid-up capital has been topped up to the total grant quantum at this point!

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For those looking to explore this opportunity further or needing assistance with the application process, feel free to reach out to us at consultant@vcg.com.sg. As consultants with extensive experience in navigating Singapore's startup ecosystem, we are here to help you secure the support you need to succeed!