SAP Startup Focus Acceleration Program to pour $7.3M into smart city startups

Singaporean and overseas startups are getting a new acceleration program to help them in their first fledgling steps to market. The SAP Startup Focus Acceleration Program is the self-explanatory title of an initiative undertaken by Singapore’s Infocomm Development Authority, enterprise software firm SAP Asia, and investment firm August Capital Partners. The program has a duration of two years and is open to all technology-based startups that are looking into smart city solutions based on data and analytics.

Those who are chosen for the program will collectively have access to an overall investment of S$10 million (US$7.3 million) from ACP and IDA (as investment and grants respectively) and mentorship from SAP executives, entrepreneurs, investors, and other prominent business figures. While funding and even mentorship are things a startup can also get from a VC, the SAP program offers a few more interesting incentives.

“Under the program, SAP will work with IDA and ACP Ventures to provide startups with the technology, support, resources and community needed to develop new applications on [SAP’s database management system] SAP HANA and accelerate market traction,” SAP tells Tech in Asia via email. “SAP will also grant access to hardware and software for development of proof-of-concepts and pilot projects.”

In order to be chosen for the program, startups will be required to make their case at the SAP Startup Forum. If they show promise, they are invited to join the program. Given that SAP is a major partner in it, it’s unsurprising that participating startups will be selected based on their idea’s feasibility with the SAP HANA platform, as well as said idea’s desirability and viability. After building a proof of concept, it will be time to turn the idea into a marketable product.

Along the way, SAP will be providing support in the form of reviews, technology, and consultation. “Startups are encouraged to validate their HANA efforts with real customers and use that feedback to roadmap productive applications,” the company tells us. “Once past the [proof of concept] stage, the best solutions are promoted in several different ways, including potential opportunities to showcase the solutions with SAP at conferences and events, and various other co-branded marketing activities.”

The program funds will be distributed to participating startups on a “company by company basis” according to ACP, with each startup being considered as an individual investment. “ACP does not take a ‘one size fits all’ approach,” they tell us.

The investment firm can lead an equity investment round of between S$200,000 (US$147,500) and S$500,000 (US$370,000) in accelerated companies, providing also “guidance on other funding options beyond equity, including debt, convertible debt, vendor financing and grants.”

“The focus of the program is to help companies achieve sustainable and scalable ‘positive velocity’ in their business,” ACP explains. “Funding is not the prime objective.”

The SAP Startup Focus Program has already had significant success, with over 1,250 startups from 55 countries participating in the program and covering various industries, supported by technology partners including Cisco, Intel, NetApp and VMWare.