In general, there are four main ways that startups in Singapore can raise money:
This is when a startup uses its own personal resources, such as savings or income from part-time jobs, to finance its business. This is often the most common method used by startups in Singapore, as it requires less paperwork and is less risky than taking on debt or giving up equity in the business.
- Personal savings
This is when the founders of a startup use their own savings to finance the business. This is a common method used by early-stage startups, as it allows them to retain 100% ownership of the company.
- Government grants
The Singapore government offers a number of grants and programs to help startups get started. These include the Start-up SG Founder grant, which provides up to S$50,000 in funding to help cover expenses such as office rental, employee salaries, and professional fees.
- VC funding
This is when a startup raises money from venture capitalists (VCs). VCs are typically investment firms that provide capital in exchange for equity in the company. This is a common method of funding for startups that have a high growth potential.