EDBI, Seeds Capital’s scheme helps Singapore startups raise $159m in funding

Singapore’s EDBI and Seeds Capital said they have facilitated 25 local startups to raise funds totalling S$216 million (US$159 million) through a joint Special Situation Fund for Startups (SSFS).

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The investment arms of both Singapore’s Economic Development Board and Enterprise Singapore introduced the scheme together in June last year to catalyze investments into high-potential startups, setting aside US$205 million in financing.

Under the program, EDBI and Seeds Capital may co-invest in selected startups with private sector investors on a 1:1 basis, which means that they will match investments made by private investors. Partnering with co-investors helps provide sufficient investment into early- to late-stage technology startups that show innovative and strategic capabilities with the potential to contribute to Singapore’s national priorities.

So far, the private players that have co-invested with the two government-linked investment firms include global and regional venture capital firms, sovereign wealth funds, and other institutional investors. Private investors have contributed more than half the total funds raised through the scheme to date.

“I am very happy to see the strong participation of our co-investors in the SSFS, which attests to the vibrancy and resilience of Singapore’s startup ecosystem amid the pandemic,” said Seeds Capital chairman and Enterprise Singapore deputy chief executive officer Ted Tan.

Payment platform CardUp and enterprise recruitment solutions provider Impress.ai are among the firms that received investments from Seeds Capital. Meanwhile, EDBI has backed finance-focused software-as-a-service firm Taiger and biotech platform ImmunoScape.

The SSFS support will end when the funds are fully committed or by October 31 this year, whichever is earlier.