Singapore’s 2021 budget aims to elevate PE-VC market
Details:
- Singapore government will invest in three platforms to support businesses locally and regionally in South East Asia:
- Corporate Venture Launchpad
- Open Innovation Platform
- Global Innovation Alliance
- Government to extend the Enterprise Financing Scheme – Venture Debt Program with an increase on the cap on loan quantum from $5 million to $8 million
Singapore’s Finance Minister Heng Swee Kiat recently announced three initiatives that will boost the PE-VC landscape in the country and in South East Asia.
The government is looking to launch or improve the following platforms to support both local and regional businesses. These include:
- Corporate Venture Launchpad
- Pilot program to drive new innovation ventures that will provide co-funding to companies looking to build new ventures through pre-qualified venture studios. The program also looks to entice large businesses that wants to initiate a startup mindset within their organization.
- Open Innovation Platform
- Ramping up the Open Innovation Platform program to help match problems faced by both public and private enterprises with solution providers through the use of accelerated virtual prototyping and testing
- Global Innovation Platform
- Generate greater cross border collaboration between Singapore and global innovation hubs. Since 2017, over 780 businesses from Singapore have taken part in innovation launchpads through partner agencies.
Mr Heng Swee Keat also mentioned that the government is extending the Enterprise Financing Scheme – Venture Debt Program with an increase on the cap on loan quantum from $5 million to $8 million. This program is typically suited for high growth start-ups that do not have significant assets to be used as collateral under traditional bank lending. For more details on this program, please refer to the link here.