How should a new startup find Singapore grants in 2024?


July 2, 2024
 min read
Step 1
Step 2
Step 3
Step 4
Step 5
Read Growth Guides

Gain insights to our library of actionable growth guides!

Download Strategy Templates

Accelerate your progress by downloading our strategy cheatsheets!

Download Webflow Components

Use our pre-built webflow templates to create your campaigns.

Launch your Campaigns and test

Get the ball rolling with your new innovative digital campaigns!

Subscribe to our newsletter

Never miss out on another insightful content from our team!

Read Growth Guides
Download Strategy Templates
Download Webflow Components
Launch your Campaigns and test
Subscribe to our newsletter

Are you ready to unlock your company's growth?

We promise not to spam you. You'll only receive sweet content from us, including updates on our products and services.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The Singapore Startup Funding Landscape

Before delving into grants, it's essential to understand the broader landscape of startup funding. Securing adequate funding is a critical challenge for any startup, and Singapore offers a diverse array of options. 

Entrepreneurs often turn to external sources to finance their ventures, whether through equity investments from investors, debt financing from financial institutions, or more creative approaches like crowdfunding. Each option comes with its own set of pros and cons, making it crucial to align the funding strategy with the business's goals and growth trajectory.

However, small business grants stand out as a particularly attractive alternative, providing access to capital without the need to relinquish equity or incur debt.

Emerging trends in funding

While traditional sources like venture capital and bank loans have long been staples in the funding landscape, Singapore's entrepreneurial community is witnessing the emergence of innovative and alternative financing methods.

Revenue-Based Financing

One of the emerging trends in startup funding is revenue-based financing (RBF). This model involves investors providing capital in exchange for a percentage of the startup's future revenue, eliminating the need for equity dilution or debt repayment. RBF can be an attractive option for startups with predictable revenue streams, offering flexibility and aligning investor interests with the company's growth.

Tokenization and Decentralised Finance

As blockchain technology and decentralised finance (DeFi) continue to gain traction, tokenization has emerged as a novel approach to startup funding. In this model, startups can issue digital tokens representing ownership or utility rights, enabling them to raise capital from a global pool of investors without the traditional constraints of geographic boundaries or regulatory hurdles.

While these emerging funding methods introduce new opportunities, they also come with their own set of risks and challenges. It's crucial for startups to carefully evaluate their options, considering factors such as investor alignments, regulatory compliance, and long-term sustainability.

The Role and Advantages of Small Business Grants

Small business grants are precisely what their name suggests – funds provided by government agencies, industry associations, or private organisations to support the growth and development of startups and small businesses. These grants are often tied to specific industries, sectors, or strategic initiatives, making them highly targeted and impactful.

One of the primary advantages of small business grants is that they offer non-dilutive funding, allowing startups to retain full ownership and control over their venture. Additionally, grants frequently come with non-monetary support, such as mentorship, training, and networking opportunities, which can be invaluable for young companies navigating the complex entrepreneurial landscape.

Success Story of Startup Fuelled by Grant Funding

The impact of small business grants in Singapore is evident in the success stories of numerous startups that have leveraged these resources to accelerate their growth trajectories. For instance, Respiree, a medtech startup developing respiratory monitoring solutions, secured funding from the National Research Foundation's Early Stage Venture Fund. This grant enabled the company to advance its research and development efforts, ultimately leading to the creation of ground breaking products that improve patient care.

Types of Singapore Startup Grants & Funding 

The startup funding scene in Singapore is still in its infancy. There are some different types of funding options available for startups that are looking to get their business off the ground.

Here's a quick look at some of the common types of funding for startups in Singapore. 

Different types of funding for small businesses in Singapore
 Securing adequate funding is a critical challenge, and understanding the nuances of each funding avenue is essential for entrepreneurs.

Government Grants 

Best way to find funding is through government grants in Singapore. The main advantage of grant funding is that it does not require equity from the business owner.

This means that the company does not need to give up any part of its ownership for the funds. This is a very attractive proposition for entrepreneurs who are looking for funding but do not want to give up control.

Why should you consider government grant funding: Grant funding is useful because it often comes with additional support and assistance from the government agency or institution offering it. This assistance can include technical expertise and advice on how best to use the funds effectively.

Venture Capital Firms

Venture capital firms are private equity firms that pool from wealthy individuals and institutions to invest in promising startups. They provide funding to companies with high growth potential and a high risk profile. The exit value of these companies must be high as well. Venture capitalists look for companies that have the potential to go public or be acquired by another company.

Venture capitalists invest in businesses with the expectation of a return on investment within five years. This is known as the "time horizon".

Why should you consider VC funding: VCs have a lot of money to invest and can finance your startup when few other sources are available. This is especially useful in the early stages of your business.

Private Equity Firms

Private equity firms are companies that invest in other companies. Vulture funds buy distressed companies. They attempt to improve them before reselling and making a profit. Private equity firms are often referred to as "leveraged buyout funds" because they use debt to finance their investments.

Private equity investors usually take large stakes in their portfolio companies and therefore have significant control over them. They also have access to resources such as the expertise of investment professionals. They can help manage their investments and give advice on how best to grow them further.

Why should you consider private equity funding: PE firms can provide capital, experience and connections. They typically have the resources to help you grow the startup business.

Incubators and Accelerators

Incubators and accelerators are programs that provide financial and mentoring support to startup companies. Incubators typically provide seed funding and office space. Accelerators also offer seed funding and often take an ownership stake in the company.

Incubators are typically run by universities or research institutes, while accelerators are run by private companies or venture capital firms.

Why should you consider joining an incubator and accelerator program: They are a great place to start if you’re looking for funding. The companies that are accepted into these programs typically have an idea and some early stage traction. 

Types of Business Grants

Singapore's vibrant startup ecosystem is supported by a diverse range of grant programs, each designed to address specific needs and growth stages. By understanding the various types of grants available, startups can strategically align their funding efforts with their business objectives.

Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) is a powerful resource for startups seeking to enhance their operational efficiency and competitiveness. This grant supports the adoption of IT solutions, equipment, and consultancy services aimed at boosting productivity. By leveraging the PSG, startups can access cutting-edge technologies, streamline processes, and gain a competitive edge in their respective industries.

Enterprise Development Grant (EDG)

As startups navigate the challenges of growth, the Enterprise Development Grant (EDG) provides valuable assistance in upgrading business capabilities and exploring new areas of opportunity. This grant supports initiatives such as product development, process improvement, market expansion, and capability-building projects. By accessing the EDG, startups can future-proof their operations, adapt to changing market dynamics, and capitalise on emerging trends.

Startup SG Tech

For startups operating in the technology sector, the SG Tech grant offers targeted support. This initiative aims to foster the development of innovative technology products and solutions by providing funding for research and development activities. By tapping into the SG Tech grant, technology-driven startups can accelerate their innovation cycles, bringing cutting-edge solutions to market and contributing to Singapore's position as a global technology hub.

Leveraging Grants for Sustainable Growth

While each grant program has its unique focus and eligibility criteria, they share a common goal: to empower startups and foster a thriving entrepreneurial ecosystem in Singapore. By strategically combining these grant opportunities with Devhaus' martech enablement solutions, startups can create a robust foundation for sustainable growth.

For example, a startup in the technology sector could leverage the SG Tech grant to fund research and development initiatives, while simultaneously utilising the EDG Automation Grant to implement Devhaus' data pipeline orchestration and visualisation solutions. This synergistic approach would not only drive innovation but also enhance operational efficiency and data-driven decision-making, setting the stage for long-term success.

By proactively exploring and leveraging the diverse range of business grants available in Singapore, startups can access the resources and support they need to turn their ambitious visions into reality. With Devhaus as a strategic partner, these grants can be optimised to drive sustainable growth, foster innovation, and solidify Singapore's position as a global hub for entrepreneurial excellence.

The Potential Impact of Grants on Your Startup's Growth

Securing a small business grant can have a profound impact on a startup's growth trajectory. These funds can be used to finance various initiatives, such as research and development, product development, market expansion, or hiring top talent. By alleviating the financial burden, grants enable startups to focus their resources on executing their vision and achieving key milestones.

Moreover, the non-monetary support that often accompanies grants can be equally valuable. Mentorship from industry experts, access to specialised training programs, and networking opportunities with potential partners or investors can provide startups with the knowledge, connections, and resources they need to navigate the challenges of growth successfully.

Identifying and Applying for Relevant Grant Opportunities

To tap into the potential of small business grants, startups must first identify and understand the available opportunities. This process begins with thorough research, exploring grant directories, government portals, and industry association websites. Once potential grants have been identified, it's crucial to carefully review the eligibility criteria, application deadlines, and required documentation.

Crafting a compelling grant proposal is a critical step in the application process. This document should clearly articulate your startup's vision, market opportunity, and the intended use of the grant funds. It should also demonstrate how your venture aligns with the grant's objectives and how the funding will contribute to its success.

Maximising Grant Impact with Devhaus' Martech Solutions

While securing a small business grant is a significant achievement, maximising its impact requires a strategic approach. This is where Devhaus' martech enablement solutions can play a pivotal role, ensuring that startups have the technological infrastructure and expertise to effectively utilise grant funding.

Amplifying Marketing Efforts with Grant-Funded Martech Initiatives

One of the key areas where startups often allocate grant funding is marketing and customer acquisition. By partnering with Devhaus, startups can leverage their expertise in setting up dynamic and SEO-optimised websites using Webflow's powerful CMS. This not only enhances their online presence but also provides a robust platform for seamless content management and data-driven marketing campaigns.

Additionally, Devhaus' proficiency in Customer Data Platform (CDP) integration enables startups to establish a cohesive first-party data environment. By consolidating data from various sources, startups can gain a comprehensive understanding of their customers, informing targeted marketing strategies and personalised experiences that drive growth.

Data-Driven Decision Making with Grant-Funded Analytics

Another area where small business grants can have a significant impact is in empowering data-driven decision-making. Devhaus' expertise in data pipeline orchestration ensures that startups can accurately track and analyse essential data points, events, and properties, providing valuable insights into customer behaviour, product performance, and market trends.

Furthermore, Devhaus' data visualisation solutions transform complex datasets into clear and actionable dashboards, preventing "analysis paralysis" and enabling startups to make informed decisions quickly. By allocating grant funding towards these analytics initiatives, startups can gain a competitive edge, identifying growth opportunities and optimising their operations for maximum efficiency.

Sustainable Growth Through Managed Services and Consulting

As startups scale and their martech infrastructure becomes more complex, the need for ongoing support and strategic guidance increases. Devhaus' managed services and consulting offerings provide startups with the expertise and resources necessary to maintain and optimise their technology stack.

Through retainer-based managed services, Devhaus ensures that startups' platforms run smoothly and efficiently, minimising downtime and maximising performance. Additionally, their collaborative consulting approach enables startups to co-strategize with industry experts, developing tailored growth strategies that align with their goals and leveraging Devhaus' deep understanding of the martech ecosystem.

By allocating a portion of their grant funding towards these services, startups can ensure the long-term sustainability and effectiveness of their martech initiatives, fostering continuous growth and adaptability in an ever-evolving business landscape. 

The synergy between small business grants and Devhaus' martech enablement solutions creates a powerful growth engine. Set up a consultation with our architects today by filling up our enquiry form.

What this article is about, in a nutshell.

Subscribe to receive the latest blog to your inbox every time we launch!

By subscribing, you agree to our Privacy & Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get up to 70% subsidy for your next project

Build your perfect growth systems and processes today

To ensure our call will be productive, ensure you’re prepared the base materials below. Can't wait! We're sure it'll be fun!

  • Prepare your problem statements
  • Align on your desired outcomes and the timeline
  • Let us know your budget constraints if any
By subscribing you agree to with our Privacy Policy.

Subsidised Strategy & Implementation Projects for Singapore Companies

For Companies operating in Singapore - get up to 50% on your next implementation, strategy or enablement project with us!