Startups to get $30m investment: Singapore Injects New Funds
The National Research Foundation of the Ministry of Foreign Affairs, Singapore is about to get a huge injection of funds for local startups. Vivian Balakrishnan, Minister of Foreign Affairs, announced that they will provide $29.28 million or S$40million as part of the NRF’s Early Stage Venture Fund third installment or ESVFIII. It was announced in September 2015. The news, published on CNBC was first announced in September 2015 by the Ministry. The funds will match the investments made by four local Singaporean companies: CapitaLand, Wilmar International, DeClout and YCH Group to local startups.
The funds are a series of installments that are given to the NRF to promote local startups in tech business. The businesses have to be situated in Singapore and are given broad guidelines to follow. They are required to undertake five years of active investment and hold five more years of their investment. The total amount of funding must be at least S$80 million. Companies are able to put in additional capital for investment.
The four companies mentioned above were looking to invest in tech businesses that ranged from property and fintech, to plantation management, to internet of things. NRF’s chief executive officer, Low Teck Seng informed that there were advantages and disadvantages of tech startups teaming with large companies like this.
- Startups get infrastructure support from these large companies.
- Networking of large proportions (supply chain as well as market) is available.
- There is difficulty of selling product or service that is already in existence.
Effects of this investment on startups:
There are increased opportunities for application developers, service providers, companies and enterprises.
The announcement was made at InnovFest UnBound 2016 which is a digital technology conference organized in Singapore. The program was attended by Minister Balakrishnan were he made the news known as well as several other news that were provided regarding future data collection from all sorts of technological interfaces, even street lamps.