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SPRING Startup Enterprise Development Scheme (SPRING SEEDS)

Overview

SPRING SEEDS Capital Pte Ltd (SPRING SEEDS Capital), a wholly owned subsidiary of SPRING Singapore, manages the SEEDS investment fund.

The SPRING Start-up Enterprise Development Scheme (SPRING SEEDS) is an equity-based co-financing option for Singapore-based start-ups creating innovative products and/or processes, possessing intellectual content and strong growth potential across international markets.

SPRING SEEDS Capital co-invests into commercially viable local start-ups, with differentiated value proposition and matches dollar-for-dollar to third-party investor(s), up to $1million, upon investment approval.

To date, SPRING SEEDS Capital has invested in various growth sectors such as science and technology, information communications technology and business services space.

Criteria

For applicant

To be eligible for investment consideration, interested start-ups must :

be a Singapore-based company with core activities carried out in Singapore
be incorporated as a Private Limited company and for less than 5 years
have paid-up capital of at least S$50,000, but not more than S$1 million
be able to evidence its substantial innovative and intellectual content for its products and/or services and/or applications
have high growth potential with clear scalability for the international market
have identified a ready, independent third-party investor(s) who is prepared to conduct due diligence on the company, invest at least S$75,000 into the business and demonstrates the ability to value-add and contribute to its growth

For investor(s)

The corporate or individual investor(s) must not have prior interest in the company at the point of application.
The corporate investor(s) must be legal entities with a minimum paid-up capital of $500,000.
Individual investor(s) should :
1. possess management experience, relevant business contacts and/or necessary technical expertise that can add value to the start-up
2. not be related to the founder(s) of the start-up
3. maintain arm's length transactions with the founder(s) and start-up
4. have at least one third-party investor or his nominee take a Board of Directors seat in the start-up, should the investment be supported by SPRING SEEDS Capital

Investment Quantum

For approved deals by the Investment Panel, SPRING SEEDS Capital matches the sum invested by third-party investor(s) dollar-for-dollar. The maximum potential investment amount that could be raised from SPRING SEEDS Capital is $1 million. Do note that tranching based on deliverables/milestones can be expected. The basis of the fund raising amount must be clearly defined and evidenced by the company's needs.
Both SPRING SEEDS Capital and the third-party investor(s) take equity stakes in the company in proportion to their investments. Subject to the company’s specific progress and performance, additional investment can be considered at a later round (up to S$1million, inclusive of initial investment).

Divestment

SPRING SEEDS Capital will exit from the investment within a five-year investment horizon at the earliest of the following:
- Sale, merger or acquisition of your start-up
- If SPRING SEEDS Capital receives a third-party cash offer to buy its shares before the fifth anniversary or investment in your company
- Initial public offering of your start-up
SPRING SEEDS Capital will review its exit strategy should none of the above occurs during the five-year investment period. If SPRING SEEDS Capital decides to divest its shares, it offers your company and third-party investor(s) the right to purchase the shares based on the proportion of shareholding in your company.

How to apply?

Investment Procedure

Briefing Session

To know more about SEEDS investment, you are strongly encouraged to attend the SEEDS briefing held monthly, at 11.00am to 12 noon at SPRING Singapore office.
Investment managers will be present to assist individual enquiries. Please refer to the right hand column of this page for more details.

Before you apply

Interested start-ups must submit a two-page executive summary of the business for a first-level assessment. You may request for a sample template of the executive summary by emailing us at SEEDS@spring.gov.sg after attending the SEEDS Briefing.
You may then arrange for a meeting with the SPRING SEEDS Capital Investment Manager to discuss your case, preferably with the presence of the third-party investor(s).

Applying for SPRING SEEDS

If suitable, the start-up will be advised to submit an official application (with detailed business plan and up to five-year financial projection), and invited to present their business case to an Investment Panel. The founding/management team and third-party investor(s) must attend this meeting.
Download the SPRING Startup Enterprise Development Scheme (SPRING SEEDS) Application Form (EXCEL format, 192kB) and submit together with supporting documents to SPRING SEEDS Capital.

Upon Approval

Upon approval by the Investment Panel, the start-up will then enter into a legal investment documentation process and required to complete a list of legal completion items.
All existing shareholders and new investor(s) are to sign, accept and return the legal documents to SPRING SEEDS Capital.
When all legal documentations are completed and approved, SPRING SEEDS Capital will proceed to disburse the investment in accordance to the agreements.