In the competitive global race to build the next big thing, Singapore has firmly established itself as a premier launchpad for ambitious entrepreneurs. Ranked as one of the top startup ecosystems in the world, the city-state’s success is no accident; it is the result of a deliberate, multi-faceted strategy. While access to private capital and a world-class talent pool are crucial, the secret weapon in a Singaporean founder’s arsenal is the unparalleled support from the government.
For a new startup company, navigating the early stages of ideation, product development, and market entry can be a daunting journey filled with financial uncertainty. This is where Singapore’s extensive network of govt grants and govt schemes becomes a game-changer. These programs are designed not just to provide a financial cushion, but to act as a strategic catalyst—de-risking innovation, accelerating growth, and making startups more attractive to private investors. This guide will walk you through the key govt business grants available, helping you understand how to leverage them to turn your vision into a thriving enterprise.
Key Takeaways
- A Clear Pathway for Every Stage: The Singapore government has created a structured and easy-to-navigate support system under the Startup SG umbrella. This framework provides targeted assistance for every phase of your startup’s journey, from getting your initial idea off the ground to scaling into global markets.
- Specialised Support for First-Time Founders: If you’re a first-time entrepreneur, the Startup SG Founder scheme is your ideal starting point. It provides not only crucial seed funding but also invaluable mentorship from experienced industry players, significantly increasing your chances of success.
- Powering Innovation with Deep Tech Grants: For startups built on proprietary and groundbreaking technology, the Startup SG Tech grant offers substantial non-dilutive funding. This support helps cover the high costs of research and development, allowing you to turn complex technological concepts into commercially viable products.
- A Magnet for Private Investment: The government’s Startup SG Equity scheme acts as a powerful signal to the market. By co-investing alongside private venture capitalists, the government validates your business and reduces the risk for other investors, making it easier to close larger funding rounds and scale faster.
The Founder’s Playbook: Navigating Key Government Grants
The cornerstone of Singapore’s support for entrepreneurs is the Startup SG initiative, managed by the government agency Enterprise Singapore. This framework consolidates a wide range of grants and schemes, making it simple for founders to find the right support at the right time.
For the First-Time Entrepreneur: Startup SG Founder
The journey of a thousand miles begins with a single step, and for many new founders, that step is the Startup SG Founder scheme. This program is specifically designed to support first-time entrepreneurs with an innovative business idea.
- What it offers: The scheme provides up to S$50,000 in grant funding. Crucially, this is a matching grant, meaning the government matches the funds raised by the entrepreneur on a 1:1 basis. This encourages financial discipline and ensures you have skin in the game.
- More than just money: Beyond the capital, successful applicants are paired with an Accredited Mentor Partner (AMP). These AMPs are experienced entrepreneurs and incubators who provide up to 12 months of intensive mentorship, offering guidance on everything from business strategy to networking and pitch training. This mentorship is often considered the most valuable part of the program.
- Who can apply: The program is open to Singapore Citizens and Permanent Residents who are first-time founders. Your company must be registered for less than six months at the time of application and have at least 51% local shareholding.
For the Tech Innovator: Startup SG Tech
If your startup company is built around proprietary, game-changing technology, you face a longer and more expensive path to commercialisation. The Startup SG Tech grant is designed to bridge this “deep tech” funding gap.
- What it offers: This grant provides non-dilutive funding (meaning you don’t give up equity) to fast-track the development of your technology. It is structured in two stages:
- Proof-of-Concept (POC): For validating the technical feasibility of your idea, with funding up to S$400,000.
- Proof-of-Value (POV): For developing a working prototype and proving its commercial potential, with funding up to S$800,000.
- Who can apply: This grant is for Singapore-based companies less than 10 years old with at least 30% local equity. Your project must be built on innovative and proprietary technology in strategic sectors like advanced manufacturing, biomedical sciences, fintech, or green tech. Recently, this has been a key vehicle for supporting the nation’s push into Artificial Intelligence, with a new collaboration between Microsoft, Enterprise Singapore, and NUS Enterprise helping to fast-track AI startups for this grant.
The Ultimate Catalyst: Startup SG Equity
Securing your first round of private investment is a major milestone. The Startup SG Equity scheme is designed to make that process easier by having the government invest directly into your company alongside private investors.
- How it works: When you secure investment from a qualified third-party investor (like a venture capital firm or angel investor), the government, through its investment arm SEEDS Capital, will co-invest in your company on similar terms. This government backing provides a strong signal of confidence to other investors, making your startup a much more attractive investment.
- Favourable terms for deep tech: The scheme offers even better co-investment ratios for deep-tech startups, reflecting the national strategy to nurture these high-potential companies. For deep-tech ventures, the government can co-invest up to S$12 million.
- Who can apply: This scheme is for Singapore-based tech startups with high growth potential that have already secured a lead investment from a third-party investor.
For Scaling and Transformation: Enterprise Development Grant (EDG)
Government support doesn’t stop after the seed stage. As your business grows, the Enterprise Development Grant (EDG) can help you upgrade, innovate, and expand.
- What it supports: The EDG is a broad grant that supports projects in three key areas:
- Core Capabilities: Strengthening your business foundations in areas like business strategy, financial management, and branding.
- Innovation and Productivity: Adopting new technologies, automating processes, and developing new products.
- Market Access: Helping you expand into overseas markets.
- Funding level: The EDG funds up to 50% of qualifying project costs for SMEs. For sustainability-related projects, this support can go up to 70%.
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Conclusion: A Strategic Partnership for Growth
In Singapore, government grants are more than just financial aid; they are a core part of a strategic ecosystem designed to help startups succeed. By providing capital at the riskiest stages, the government empowers founders to focus on building great products and finding market fit. More importantly, these schemes act as a powerful endorsement, unlocking doors to private funding, corporate partnerships, and global opportunities.
For any entrepreneur building a business in Singapore, the message is clear: do not overlook these powerful resources. By understanding the landscape of govt business grants and strategically aligning your milestones with the available schemes, you can significantly de-risk your journey, accelerate your growth, and build a more resilient and successful company.
Frequently Asked Questions (FAQs)
As a first-time founder with just an idea, which grant should I apply for?
The Startup SG Founder grant is the perfect starting point. It is specifically designed for first-time entrepreneurs and provides both initial seed funding (up to S$50,000) and, crucially, mentorship from an Accredited Mentor Partner to help you turn your idea into a viable business.
My startup is developing a new AI software. Which grant is most suitable?
The Startup SG Tech grant is ideal for your business. It supports companies with proprietary, innovative technology. You can apply for the Proof-of-Concept (POC) stage to validate your AI model, and later the Proof-of-Value (POV) stage to develop a commercial prototype.
Do I need a Singaporean co-founder to be eligible for these grants?
Yes, most of the key startup grants, including Startup SG Founder and Startup SG Tech, require the company to have a minimum local shareholding, typically at least 30-51% held by Singapore Citizens or Permanent Residents.
How do government grants help in attracting private investors?
The Startup SG Equity scheme is designed for this exact purpose. The government co-invests alongside private VCs, which reduces the risk for these investors and acts as a strong signal of your company’s potential. Being a recipient of any competitive government grant also adds a layer of credibility that is attractive to investors.
Where can I find a list of all available government grants for my startup?
The best place to start is the official Startup SG website. It serves as a one-stop portal that consolidates all the different grants and schemes available to entrepreneurs in Singapore, with clear explanations of the eligibility criteria and application process for each.
Are there grants to help my business expand outside of Singapore?
Yes. The Enterprise Development Grant (EDG) has a “Market Access” pillar that supports companies looking to venture overseas. Additionally, the Market Readiness Assistance (MRA) Grant is another scheme designed to help SMEs take their first steps into international markets.
