Seeding 500 startups through funding, mentorship and networks

1. The Action Community for Entrepreneurship (ACE) will be seeding 500 startups through funding, mentorship and networks as part of renewed efforts to promote entrepreneurship in Singapore. Minister of State for Trade and Industry, Mr Teo Ser Luck, who is also the Chairman of ACE, announced this at a news conference to unveil plans to create a more entrepreneurial Singapore.

Creating Networks through Mentorship, Networking and Overseas Opportunities

2. Commenting on the new focus areas, Mr Teo said, “When ACE was formed almost a decade ago, the focus was on areas like financing, rules and regulations, internationalisation and fostering a culture of entrepreneurship. This has, over the years, helped to create a pro-enterprise environment and a culture that is more receptive towards entrepreneurship. Going forward, we will focus more on helping aspiring entrepreneurs to start their companies and guide them to become sustainable businesses. While we will be providing seed funding, our main focus is to link entrepreneurs to critical resources, such as mentors and networks. These will make a difference to whether they succeed and create better jobs for Singaporeans. This is also where the involvement from the private sector, through ACE, makes the most sense.”

Seed funding through ACE Startups

3. Seed funding is one of the supporting strategies to help aspiring entrepreneurs start and build their first business ventures. Under the ACE Startups programme, first-time entrepreneurs can receive up to $50,000 to start their business. This is similar to the support level under the Young Entrepreneurs Scheme for Startups (YES! Startups) programme that it will replace. The new programme will also do away with the requirement for applicants to be below 26 years old.

4. Explaining the reasons for the changes, Mr Teo said, “We launched YES! Startups to encourage young people to explore entrepreneurship as an alternative career. However, we recognise that good business ideas can come from anyone regardless of age, including mid-career professionals and managers who want to tap their expertise and business networks to create a business. By removing the age limit, we hope to cast the net wider and encourage more people with good ideas to turn them into sustainable businesses.”

5. Mr Teo added, “We have also clarified on the innovativeness criterion. We decided that so long as an entrepreneur can set his business apart and be differentiated from his competitors, he can build a competitive edge and be successful in his venture. A good example is Vanda Fine Clothing, one of the YES! Startups. To create a differentiated product, Vanda uses a rare traditional artisan sewing technique known as hand-rolling to create handcrafted menswear. This technique has not been practised as many had turned to mass production over the years. With its unique designs, the brand has received good reviews and gained a community of fans from as far as the US and Europe within a year. In fact, more than 80% of its revenue comes from outside Singapore. We hope to encourage more of such differentiated businesses.”

6. To chart the new direction and drive entrepreneurship development efforts, a Steering Committee and five Sub-Committees have been set up.

7. The Mentoring Sub-Committee will be chaired by Dr Steven Fang of Cordlife Ltd, who is also the ACE Deputy Chairman. The Sub-Committee will help startups grow through mentoring in their first years of operation. A framework will be put in place to recruit and match startups with suitable mentors who can share their experience to accelerate the startups’ growth. Said Dr Fang, “We encourage more mentors to step forward so that we can build a pool of mentors who can guide the startups in their growth. We are also looking at mentors from diverse backgrounds who contribute their varied expertise and business experience.”

8. The Networking Sub-Committee, led by Mr Clinton Ang of Hock Tong Bee Pte Ltd, aims to expand the networks of startups by linking them with other entrepreneurs and potential investors, mentors and business partners. The Sub-Committee will be organising regular networking events for startups to build up their contacts locally and overseas. “For a startup to become a sustainable business, it’s crucial to be plugged into the business community. These contacts serve both as a support network as well as a valuable resource.”

9. Mr James Tan of 55tuan.com will be leading the Overseas Chapters Sub-Committee to help startups access overseas markets by establishing an ACE presence in selected locations. Said Mr Tan, “Having started 55tuan from scratch in China, I can appreciate how challenging it is doing business in a foreign market. I hope to facilitate the entry of local startups overseas, to help them scale up and take the first step towards being a global Singapore brand.”

10. The Communications Sub-Committee will be led by Mr Prakash Somosundram of Yolk Pte Ltd to promote entrepreneurship and ACE in Singapore. SPRING Singapore’s Director of Entrepreneurship Development, Mr Sim Choon Siong, will lead the ACE Startups Sub-Committee which will assess all grant applications.

11. More details on ACE and ACE Startups are in Annex 1 and Annex 2.

About Action Community for Entrepreneurship
The Action Community for Entrepreneurship (ACE) is a public-private sector collaboration which aims to create a more entrepreneurial Singapore. ACE works with partners to promote a pro-enterprise environment; foster an entrepreneurial culture and mindset; and facilitate networking and learning among entrepreneurs. For more information, visit www.ace.sg