One of the biggest challenges of entrepreneurship is trying to get all three factors to line up in one place, but lucky for you, we’ve done the hard work for you.
Startups are on the rise around the world. According to the Global Entrepreneurship Monitor’s annual report, an overwhelming 100 million businesses are launched every year. That’s 11,000 businesses per hour or just over three per second. Unfortunately, over 90% of them fail.
There are hundreds of factors that need to be aligned just for a startup to be successful. However, the biggest factors are always finding the right time, the right place, and having enough capital to pull it off. One of the biggest challenges of entrepreneurship is trying to get all three factors to line up in one place, but lucky for you, we’ve done the hard work for you.
Why is Singapore the ideal place to launch a startup?
Virgin.com’s Entrepreneur column named Singapore as of the best countries to launch a startup. Several of Singapore’s startups have achieved the coveted unicorn status (valued at $ 1billion or more) including the gaming platform Garena, the e-commerce platform Lazada, and Razer, the world-famous gaming hardware provider.
There has never been a better time for both local and foreign entrepreneurs to launch a business here.
Here’s what makes Singapore such a prime spot for startups:
Location, Location, Location.
Singapore’s proximity to the larger markets of both India and China give entrepreneurs an easy way to expand globally.
Singaporeans are smart
Singapore has one of the highest literacy rates in the world. This combined with its rigorous schooling system means Singaporeans are some of the best-educated, tech-savvy people on the planet, making them a highly receptive market for innovative startups.
Pro-Business
The Singaporean government is doing everything possible to support businesses as much as possible. The legal system and technological infrastructure have been updated to suit changing business norms.
Funding
Thanks to the government, grants and loans for startups are plentiful and easy to obtain. Add in recent relaxations of regulations and restrictions, low tax rates, and the prevalence of numerous incubators, and you’ve found yourself the perfect environment to kick-start your startup.
Incubators & Accelerators
Singapore has a plethora of incubators and accelerators in a number of different industries. But more on that in just a second.
What are incubators and accelerators anyway?
Incubators and Accelerators provide a framework in which a portion of the startup’s equity is exchanged for access to startup capital and mentorship from experienced entrepreneurs to help them grow a startup as quickly and efficiently as possible.
Incubators
Incubators are generally suited to startups earlier on in the process. They provide financial, legal and managerial advice, and match entrepreneurs with mentors that suit their projects and style of work. Most incubators all provide startups with a certain amount of capital, and also give them access to angel investors.
Accelerators
The biggest difference between incubators and accelerators is the approach. Think of an incubator as a way to slowly but surely build up a stable business. An accelerator, as the name suggests, is a way of jumpstarting your business. Designed for more established startups, accelerators operate on a set timeframe and help entrepreneurs accomplish several years’ worth of business building within a few months.
5 Biggest Accelerators and Incubators in Singapore
1. Rockstart
Rockstart is a Dutch accelerator based in Singapore that teaches startups how to fine-tune their business and scale them for international success. Over 75% of Rockstart’s startups successfully receive funding. Rockstart’s startups have totally amassed over S$64,000,000 since it’s creation.
The lowdown:
Type of Program: Accelerator
Duration: 150 days
Focus: Smart energy, and digital health, web and mobile platforms
Investment: Information not available
What’s so special about it?: While the program runs primarily in Singapore, entrepreneurs spend 2 weeks in the Silicon Valley and another 2 weeks in New York City as part of the program.
2. Fatfish MediaLab
The Media Development Authority of Singapore’s i.jam funding scheme along with Fatfish MediaLab have created a co-investment partnership that sees up to S$250,000 of funding for early stage startups. All they ask for in return is a small percentage of the startup’s equity.
In addition to this, they also provide business and operational support, product development guidance, marketing expertise and more.
The lowdown:
Type of Program: Incubator
Area: Mobile, e-commerce and fintech
Investment: Small percentage of equity
What’s so special about it?: Not only does their “Seed-to-Exit” guide startups through the entire process of growth, but also gives introduces it to emerging markets in Southeast Asia
3. Joyful Frog Digital Incubator (JFDI)
Unlike some of the other accelerators on this list, JFDI takes on a more collaborative approach to business growth using their award-nominated innovation framework. JFDI typically co-owns all startups that it co-creates within 6 months.
While that might raise red flags for some it’s important to remember that JFDI has a very impressive track-record. It has invested over S$3,000,000 in over 70+ startups, and over 50% of those startups are now valued at over S$60,000,000!
The lowdown:
Type of Program: Accelerator
Duration: 100 days
Focus: Scalable, profitable Asia-centric businesses
Investment: S$50,000/ 8.888% equity
What’s so special about it?: JFDI has worked with 69 startups from around the world and turned a $1 m initial investment into a $60m+ portfolio.
4. SPH Plug and Play accelerator
SPH is one of the most well reputed and well-funded accelerators on this list. It describes itself as the “Silicon Valley’s global accelerator and Singapore government’s premier technology fund.” SPH provides media and/or technology-related startups S$30,000 in addition to other services valued up to S$200,000 in exchange for 6% equity.
The lowdown
Type of Program: Accelerator
Duration: 70 days
Focus: E-commerce, marketing and content distribution, advertising, news apps
Investment: S$30,000/ 6% equity
What’s so special about it?: The program is run by one of the largest media companies in Singapore, Singapore Press Holdings.
5. Unframed
Founded by tech-consultant superstar, Larry Tchiou, Unframed provides entrepreneurs with a 4 months curriculum jam-packed with networking, business development, and one-one mentorship. Unframed specifically targets startups that aim to make a positive impact on society.
The lowdown
Type of Program: Accelerator
Duration: 180 days
Area: Social impact
Investment: S$10,000/ up to 10% equity
What’s so special about it?: Each startup receives S$10,000 in seed funding.
