SINGAPORE-–The Economic Development Board (EDB) is planning to spend S$50 million in a scheme to co-finance locally-based startups, said Singapore deputy prime minister Dr Tony Tan.
“(The scheme) will provide matching financing to innovation-based startups incorporated in Singapore, both locally and foreign-owned, which undertake their activities in Singapore," Tan noted at the TechVenture Asia 2001 conference this morning.
According to Tan, for every dollar of seed equity raised from the private sector, EDB will invest a dollar in the startup--up to an undisclosed limit.
“In return for providing such matching financing, the EDB will share in the upside of the company’s success by taking an equity stake,” he added, without elaborating.
To make the scheme more attractive to private sector investors, part of EDB’s realized profits from the project will be shared with the private sector investors.
Details of the scheme will be available next month, an EDB spokesperson told Singapore.CNET.com.
TechVenture Asia 2001 is an initiative by the Singapore government to promote interaction and partnership between international players in the investment and technology startup communities. The two-day event is currently being held at the Grand Hyatt Hotel, Singapore.