New Technology Incubation Scheme To Fill 6-digit Funding Gap

In another move by the government to make up for the dearth of funds in Singapore, the National Research Foundation has issued a Call for Proposal for the new Technology Incubation Scheme (TIS). Modeled after Israel’s Technological Incubator Programme, NRF will co-invest up to 85% or S$0.5 million per startup, with an appointed incubator investing the rest (at least 15% of the total investment).

Update: 7 incubators have been selected.

Details of the scheme

Stage of startups targeted

– High-tech companies based in Singapore (a sales office here is NOT okay)

– Not to support entirely new startup companies that is at the Proof of Concept stage. TIS will fill in the funding gap of the 200-500k range, as there are many companies who are either too big for other government schemes like iJAM or YES!, or too small for SPRING SEEDS or Business Angels Scheme.

Between NRF and Incubator

– Co-funding between NRF (up to 85% or S$500,000) and Incubator (provide at least 15% of investment). This means that for the max NRF funds of 0.5m, the incubator need only invest around 88k.

– Equity split will be in proportion to amount of investment.

– NRF investment will be in the form of a convertible bond.

– Share buyout option open to incubator. Incubator can buy NRF’s share out at a price of 1.1 times capital in the first 2 years, and 1.15 times capital in the third year.

Requirements

– There must be physical incubation space to house the startups. Length of incubation period is up to the incubator and startups.