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Budget 2020: Deep-tech startups to get more support under Startup SG Equity
TO catalyse investment into deep-tech startups, the Singapore government will set aside an additional S$300 million under the Startup SG Equity co-investment scheme, Deputy Prime Minister and Finance Minister Heng Swee Keat said in his Budget speech on Tuesday.
Startup SG Equity provides equity investments to tech startups with strong intellectual property and global market potential. It helps startups get their ideas off the ground by providing support such as co-investments, mentorship and physical space.
This year, the government will increase support for deep-tech startups – those in emerging technology areas such as pharmbio and medtech, advanced manufacturing, and agri-food tech.
As these startups need larger investments and longer gestation periods, and face higher risks, investors are less prepared to invest in them, Mr Heng said.
The additional S$300 million allocated to Startup SG Equity is expected to draw more than S$800 million of private funding over the next decade, he added.
“This will give deep-tech startups better access to capital, expertise and industry networks.”
Singapore has some 3,800 technology startups, and about 150 venture capital funds are investing in startups in the Republic and in the region.
The move is part of the government’s Transformation and Growth strategy, for which S$8.3 billion has been allocated over the next three years.
For more Budget 2020 stories, visit bt.sg/budget20.