SPRING Startup Enterprise Development Scheme (SPRING SEEDS)

Overview  Criteria  How to apply? Related Links & Resources

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.

From 1 December 2008 to 31 January 2011, SPRING SEEDS Capital can potentially match two dollars for every dollar raised by the company, for an approved deal (on a case-by-case basis).

Criteria

For applicant

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

1. be a Singapore-based company with core activities carried out in Singapore
2. be incorporated as a Private Limited company and for less than 5 years
3. have paid-up capital of at least S$50,000, but not more than S$1 million
4. be able to evidence its substantial innovative and intellectual content for its products and/or services and/or applications
5. have high growth potential with clear scalability for the international market
6. 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)

1. The corporate or individual investor(s) must not have prior interest in the company at the point of application.
2. The corporate investor(s) must be legal entities with a minimum paid-up capital of $500,000.
3. 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

1. For approved deals by the Investment Panel, SPRING SEEDS Capital matches the sum invested by third-party investor(s) dollar-for-dollar, from an initial S$300,000, and subsequently a potential follow-on of up to a maximum of S$1 million inclusive (subject to conditions). 
2. Both SPRING SEEDS Capital and the third-party investor(s) take equity stakes in the company in proportion to their investments.

Divestment

1. 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 recieves a third-party cash offer to buy its shares before the fifth anniversay or investment in your company
   • Initial public offering of your start-up
2. 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

1. To know more about SEEDS investment, you are strongly encouraged to attend the SEEDS briefing held every first and third Thursdays of the month, 11.00am to 12 noon at SPRING.
2. 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

3. 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.
4. You may 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

5. 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.  
6. Download the SPRING Startup Enterprise Development Scheme (SPRING SEEDS) Application Form (EXCEL format, 152kB) and submit together with supporting documents to SPRING SEEDS Capital.

 Upon Approval

7. 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.
8. All existing shareholders and new investor(s) are to sign, accept and return the legal documents to SPRING SEEDS Capital.
9. When all legal documentations are completed and approved, SPRING SEEDS Capital will proceed to disburse the investment in accordance to the agreements.

Related Links & Resources

View the list of featured SPRING SEEDS investees.