Singapore’s YES! Startup seed fund no more, resurrects as ACE Startups

The YES! Startup scheme, a government seed fund that has been around since 2008, is no more. It is being replaced by ACE Startups, which will accept applications from 1st February.

The new initiative was announced at a press conference today, and is positioned as an improvement on YES! Startup.

While YES! had an upper age limit of 26, ACE will do away with this requirement to cater to older applicants like mid-career professionals, retirees, and seniors (more about older entrepreneurs).

Funding of up to S$50,000 (US$39,125) per startup will be provided, which will be given in several tranches, subject to the hitting of milestones.

The Action Community for Entrepreneurship (ACE) is a private-public partnership formed in 2003 to create an entrepreneurial Singapore. It is headed by Teo Ser Luck, Minister of State for the Ministry of Trade and Industry. The ACE committee consists of a mix of entrepreneurs and civil servants.

The YES! scheme was previously administered by SPRING Singapore, a government agency that helps Singapore enterprises grow.

Like YES!, the ACE scheme will require entrepreneurs to match the funds at a 70:30 ratio. That is to say, in order to receive S$50,000, entrepreneurs must provide S$21,429 (US$16,800) from their own pockets.

A key change in evaluation criteria is that startups will be judged not so much on technological innovation, but on differentiation. Which means businesses that are not technologically inclined but have good product differentiation that can create a new path in the market will now stand a higher chance of getting selected.

“So long as an entrepreneur can set his business apart and be differentiated from his competitors, he can build a competitive edge and be successful in his venture,” said Minister Teo.

ACE also hopes to cut down on the bureaucracy and excessive paperwork that many entrepreneurs faced when applying for the YES! fund. Also, in the past, startups would need to submit a full business plan with financials to apply for funding. This is no longer the case, although applicants must still submit detailed information about their business idea.

Other criteria that applicants must meet include: Holding or proposing to hold at least 51 percent equity in the company, must not have registered or incorporated any business entity or received funding from another government organization. Certain types of business cannot apply for the scheme: Night clubs, bars, relocation services, and others.

The initiative is looking to fund up to 500 startups, and Minister Teo hopes all the funds will be administered sooner rather than later.

Beyond funding, the scheme will provide networking and mentorship for startups to grow their business. The startups under the scheme will be guided by established entrepreneurs which head the various ACE sub-committees.

Dr Steven Fang of Cordlife will lead the mentorship sub-committee. He hopes to eventually rope in entrepreneurs not just from Singapore, but from around the world as far as Silicon Valley.