Empowering First-Time Entrepreneurs: An In-Depth Look at the Startup SG Founder Grant

Singapore has long been recognised as a global hub for innovation and entrepreneurship. To maintain this status and nurture the next generation of business leaders, the government has introduced many initiatives over the years. One such program is the Startup SG Founder Grant. This grant offers financial aid and invaluable mentorship to first-time entrepreneurs to encourage a vibrant startup ecosystem in the nation.

In this comprehensive guide, we will delve into the fundamentals of the Startup SG Founder Grant, exploring the eligibility criteria, the grant amount, benefits, and the application process. We'll also highlight some of the prominent Accredited Mentor Partners (AMPs) involved in the scheme and how integrating Wise Business’ easy-to-use, low-fee international business account solution can support Singapore startup founders with global ambitions.

What is the Startup SG Founder Grant?

The Startup SG Founder Grant is a government initiative to support the growth of Singaporean enterprises. This program encourages and supports aspiring first-time entrepreneurs in establishing their local businesses through funding and mentorship from AMPs.

Goals and History

The Startup SG Founder Grant was an initiative by Enterprise Singapore (ESG)¹, a government agency committed to supporting the growth of Singaporean enterprises. Originally launched in March 2017, the program was later revised on 1 April 2024 to provide first-time entrepreneurs with more expansive support:

• Encourage and Provide Support to First-time Entrepreneurs: Inspire graduates and mid-career professionals to consider entrepreneurship as a viable career path. By offering financial support and mentorship programs, first-time entrepreneurs are better equipped to multiply their business potential and stay relevant with the industry they’re operating in.
• Help New Entrepreneurs Leverage Expertise: First-time entrepreneurs can leverage the networks of Accredited Mentor Partners (AMPs) to gain valuable insights into the industry’s best practices, strategies, and innovations to accelerate their business potential.
• Entrepreneurship Training for New Entrepreneurs: Successful applicants for the Startup SG Founder Grant are given entrepreneurship training.² This training covers fundamental entrepreneurial frameworks and processes, including venture creation, lean methodology, market analysis, financials, pitching, and more.

Why Startup SG Founder Grant was introduced

Budding entrepreneurs often encounter obstacles that slow business growth and deter newcomers from entering Singapore’s startup ecosystem. To tackle these challenges, the Startup SG Founder Grant was launched to help entrepreneurs overcome key barriers such as:

• Lack of Capital: Early-stage startups often struggle to secure funding due to the high risk associated with new ventures. The grant provides seed funding with minimum eligibility criteria to help startups overcome initial financial challenges.
• No Experience to Build Sustainable Businesses: The Startup SG Founder Grant program connects new entrepreneurs with experienced mentors to ensure first-time startup owners can quickly navigate the complexities of starting a business. By fostering collaboration, new entrepreneurs can more efficiently drive their startup's growth to success.

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Benefits of the Startup SG Founder Grant

The Startup SG Founder Grant offers many benefits designed to support first-time entrepreneurs. Let’s break them down:

Financial Support

• The program offers grants ranging from S$20,000 to S$50,000 to successful applicants who meet the eligibility criteria. This is awarded based on a 1:1 support ratio. This means, for every dollar raised by the entrepreneur, ESG will match it, effectively doubling the startup's initial capital.
• To illustrate, for entrepreneurs to receive S$10,000 in grants, they have to inject S$10,000 capital into the business. To receive the maximum grant of S$50,000 grant, entrepreneurs put S$50,000 to the business.

AMP Mentorship

• Besides funding, successful applicants will also be enrolled on a mentorship program with one of the 15 AMPs for up to 12 months³. The new entrepreneurs will receive invaluable business insights, pitch training, networking opportunities with investors and corporates, and support in areas like secretarial and accounting services.
• Some AMPs even provide additional grants on top of the Startup SG Founder Grant. For example, NUS Enterprise offers an extra $10,000 cash grant to entrepreneurs who come under their mentorship program and successfully receive the full sum of $50,000 from ESG⁴.

Co-Matching Capital

• Some AMP’s or third-party investors may also offer co-matching capital¹ to approved entrepreneurs.
• However, they are required to provide at least 50% of the co-matching capital in the form of paid-up capital on ACRA Bizfile at the point where application is submitted to ESG.

Eligibility Criteria

To qualify for the Startup SG Founder Grant, the applicants as well as their business entities must meet the following criteria:

Prerequisites for Applicants

• An application must comprise at least two Singapore Citizens (SCs) or Singapore Permanent Residents (SPRs). They must collectively hold a minimum of 30% equity in the company and are key decision-makers throughout the 12-month grant period.
• The revision of the grant in 2024 opens up opportunities for first-time entrepreneurs to partner with non-first-time founders. As such, a startup applying for the grant may have the following composite:

Prerequisites for Startups

For a new startup to qualify for the program it:

• Must not have received any grant from another government organisation
• Must have a SC or SPR who own at least 51% of the entity
• Must be registered as a private limited business in Singapore for less than 6 months
• Must have key business activities in Singapore
• Must have a co-matching amount of S$20,000 as paid-up capital on ACRA. At least S$10,000 as paid-up capital on ACRA at the point of grant application

More detailed information on eligibility can be found on the Startup SG Founder Grant website⁶.

Accredited Mentor Partners (AMPs)

AMPs play a pivotal role in the Startup SG Founder Grant scheme. They are identified based on their expertise, industry specialisation, and ability to identify and guide newcomers along their entrepreneurial journey.

There are 15 AMPs under the Startup SG Founder Grant. Some of them offer unique perks on top of basic mentorship:

How to apply for the Startup SG Founder Grant

Interested applicants for the Startup SG Founder Grant must complete the following process with ACRA e-statement, business plans and resumes of the management team:

1. Identify an Accredited Mentor Partner (AMP) - Choose an AMP that aligns with your business domain and can provide the necessary support.
2. Submit Application to AMP - Present your business proposal to the selected AMP for evaluation. The proposal must provide details of the innovative concept, market analysis, and financial projections.
3. AMP Evaluation - The AMP will assess the application based on the uniqueness of the business concept. Approved applicants will receive a Letter of Recommendation.
4. Submit Application to ESG – Applicants submit an online application to ESG¹⁰ with AMP Letter of Recommendation, resumes of management, ACRA Bizfile, ACRA people profile and business proposal.
5. ESG Reviews and Approve – Upon approval, ESG will issue a Letter of Offer to applicants.

Conclusion

The Startup SG Founder Grant by ESG empowers first-time entrepreneurs with funding of up to $50,000 and mentorship from Accredited Mentor Partners (AMPs) like NUS and Antler. By bridging financial gaps and providing expert guidance, this grant helps startups navigate the challenges of launching a business.

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Sources checked: 24th February 2025