8 February 2018
Media Release: NTE/02/2018
SPRING SEEDS Capital Appoints Nine Co-investment Partners
The new Startup SG Equity partnerships aim to catalyse more than $200 million investments in emerging sectors
SPRING SEEDS Capital Pte Ltd (SSC), the investment arm of SPRING Singapore, has appointed nine co-investment partners under Startup SG Equity. The initiative aims to catalyse private sector investments into Singapore-based technology startups with strong intellectual property and global market potential.
The partners will co-invest in Singapore-based deep technology (deep tech) startups[1] in Advanced Manufacturing & Engineering (AME), Health & Biomedical Sciences (HBMS), and Urban Solutions & Sustainability (USS) (see Annex A). These sectors are aligned with the core domains of Singapore’s roadmap for research and development, under the Research, Innovation and Enterprise (RIE) 2020 plan.
SPRING Singapore works with more than 500 AME, HBMS and USS deep tech startups, and over 40 incubators, accelerators and venture capitalist firms focusing on these sectors. The strategic emerging sectors have immense growth potential and generate significant economic benefit, good jobs, and positive social impact. This includes raising manufacturing productivity through innovation, improving patient health and quality of life, and ensuring environmental sustainability.
Through this partnership with the private sector investors, SSC is committing up to S$100 million under the RIE2020 budget. The amount will be matched (see Annex B) by private capital raised by the co-investment partners. SSC aims to catalyse more than S$200 million of investments into early stage startups over the next eight years.
The nine appointed partners are Armstrong Industrial Corporation, HealthXCapital, Heritas Capital Management, Incuvest-Avior, MedTech Alliance 2, Millennia-VFT Ventures, Silicon Solution Partners, Small World Accelerator and Trendlines Medical-K2 Global (Refer to Annex C & D for details).
These co-investment partners were selected based on their expertise in the key sectors and their ability to add value to the startups. The appointed partners will help shorten the learning curve of high potential startups by injecting resources and expertise. This includes helping with technology translation, offering prototyping and manufacturing facilities, and lending strategic networks for development and commercialisation.
Mr Lu Yoh-Chie, former Executive Chairman of Biosensors International and a Partner in the MedTech Alliance 2 (MTA2) consortium said, “While I see a lot of promising research conducted in Singapore, there is a distinct gap in the translation of these deep technologies to commercialisation. Partnering SSC to co-invest in these deep tech startups would provide us with capital and leverage to focus on bridging this gap with our domain expertise, extensive networks and deep knowledge of the markets.”
Dr Frank Levinson, Founder & General Partner of Small World Accelerator (SWA), added, “Having started and invested in nearly 20 companies in Singapore in the areas of photonics, sustainability, renewable energy, advanced materials and manufacturing technology through a National Research Foundation (NRF)-backed incubator, I have seen how public-private partnerships can provide solid pathways to bring new ideas to full commercialisation. With our newly created accelerator, we look forward to partner SSC to co-invest in more of these promising startups.”
The newly appointed partners will join seven other SSC co-investment partners. Over the past two years, SSC and these partners have co-invested over $35 million in more than 20 startups in the AME, HBMS and USS sectors.
3D dental printing company Structo is an example of a deep tech AME company, which obtained investment from SSC and appointed partner Wavemaker. Mr Huub van Esbroeck, Founder and CEO of Structo, said, “It was challenging finding investors who were willing to invest in high-tech hardware startups, which are relatively capital-intensive compared to software, e-commerce and fintech enterprises. SSC and Wavemaker’s joint investments in our investment rounds helped fund our new materials formulation lab and marketing efforts for the launch of our latest 3D printer. They have also introduced us to potential customers, advisors and mentors to help us be better prepared to go to market.”
Mr Ted Tan, Chairman of SPRING SEEDS Capital and Deputy Chief Executive of SPRING Singapore said, “Investors, accelerators, and incubators play a key role in catalysing innovative deep tech startups. We look forward to working with our new co-investment partners to identify high-potential startups, assist them in developing their capabilities, and fast-track their entry into the global market.”
Startup SG
Startup SG Equity focuses on developing tech startups with intellectual property and global market potential. This scheme is part of the Startup SG initiative, which offers a holistic range of support for startups of all development stages.
Startup SG Founder
Another support pillar under Startup SG is Startup SG Founder – which aims to assist startups in an earlier phase of growth. The Startup SG Founder scheme has launched its second Call-for-Partnership for Accredited Mentor Partners (AMPs) to provide mentorship support and startup capital grant to first-time entrepreneurs with innovative business concepts. The call opened on 1 February 2018, and SPRING is looking to engage partners such as corporates, venture capital firms and accelerators. Bringing financial and industry knowledge, these private sector partners will value-add with mentorship, connections to business networks, and advice to help startups accelerate their learning curves and enhance their go-to-market strategies. More information is available at www.startupsg.net/startupsg-founder.
- End of media release -
About SPRING Singapore
SPRING Singapore is an agency under the Ministry of Trade and Industry responsible for helping Singapore enterprises grow and building trust in Singapore products and services. As the enterprise development agency, SPRING works with partners to help enterprises in financing, capability and management development, technology and innovation, and access to markets. As the national standards and accreditation body, SPRING develops and promotes an internationally-recognised standards and quality assurance infrastructure. SPRING also oversees the safety of general consumer goods in Singapore.
SPRING and IE Singapore will be merging to form Enterprise Singapore in Q2 2018. Enterprise Singapore will enable the growth of Singapore companies through an integrated support network to build business capabilities and access overseas markets.
Please visit www.spring.gov.sg and www.facebook.com/sgspring for more information and news about SPRING Singapore.
About SPRING SEEDS Capital Pte Ltd (SSC)
SPRING SEEDS Capital (SSC), an investment arm of SPRING Singapore, co-invests with independent investor(s) in high potential Singapore-based startups with innovative and strong intellectual content that are scalable across international markets. It also manages co-investment funds administered under Startup SG Equity, a scheme which catalyses private-sector investment for startups through government equity co-investment. Under Startup SG Equity, SSC supports early-stage startups across a wide range of technology and industry domain areas. For more information on the funding programmes, please visit www.spring.gov.sg and www.startupsg.net.
For any media enquiries, please contact:
Chan U-Gene
Senior Manager, Corporate Communications
SPRING Singapore
Direct: 62793745
Mobile: 98792292
Email: chan_u-gene@spring.gov.sg
ANNEX A: SECTORS OF INTEREST
Advanced Manufacturing & Engineering (“AME”)
This sector involves advanced technologies to support the growth and competitiveness of the manufacturing and engineering sector. Its focus areas include: i) advanced manufacturing, ii) advanced materials & process engineering, and iii) the Internet of Things (IoT). Some of its sub-sectors are additive manufacturing (also known as “3D printing”), robotics, biomaterials, agri-technology, nanotechnology, lightweight and novel materials, intelligent systems or products, and technologies that can enable IoT adoption.
Health & Biomedical Sciences (“HBMS”)
This sector involves the development of technologies that monitor, diagnose, treat, and/or improve medical conditions. It has five therapeutic focus areas, including: i) cancers; ii) cardiovascular diseases; iii) diabetes mellitus & other metabolic/endocrine conditions; iv) infectious diseases; and v) neurological & sense disorders. Its sub-sectors include medical devices, in-vitro diagnostics, diagnostic imaging, life-science research tools, surgical robotics, endoscopy and digital health technologies.
Urban Solutions and Sustainability (“USS”)
This sector involves technologies which focus on enhancing our living environment and address our resource constraints in a sustainable manner which reduces carbon emissions and efficiently uses natural resources. This includes areas such as renewable energy, water, environment, urban mobility and liveable spaces. Its sub-sectors include renewable energy generation, storage and energy management, smart grids, waste and water monitoring, treatment, recycling and management, urban mobility, land and liveability, as well as agri-technology.
ANNEX B: INFORMATION ON STARTUP SG EQUITY
Under Startup SG Equity, government co-investment in startups has been enhanced to support growth in deep technology (deep tech) areas such as medical technology, clean technology and advanced manufacturing and engineering. As startups in these areas often require higher capital expenditure and longer commercialisation runways, SPRING has enhanced funding support by increasing the funding ratio of government co-investment for early-stage startups and increasing the existing investment caps for promising startups in deep tech sectors.
A comparison of the previous and new investment parameters is shown in the table below:
|
Previous Investment Parameters[2] |
New Investment Parameters |
||
|
None |
Deep tech |
General tech |
|
|
Investment Cap |
$2M |
$4M |
$2M |
|
Co-investment ratio |
1.1 |
7:3 up to $500K, 1:1 thereafter up to $4M |
7:3 up to $250K, 1:1 thereafter up to $2M |
ANNEX C: APPOINTED CO-INVESTMENT PARTNERS
|
Name |
Sector focus |
Contact details |
|
Armstrong Industrial Corporation |
Health & Biomedical Sciences Advanced Manufacturing & Engineering |
Phyllis Ong Deputy Chief Executive Officer 8687 3456 Kenneth Ling Vice President Corporate kenneth.ling@armstrongasia.com 9029 6520 |
|
HealthXCapital |
Health & Biomedical Sciences |
Jimit Patel Analyst 81336812 Seemant Jauhari Partner 9009 8041 |
|
Heritas Capital Management |
Health & Biomedical Sciences |
Chik Wai Chiew Chief Executive Officer 67160500 Janet Chia Associate Director 67160500 |
|
Incuvest-Avior |
Advanced Manufacturing & Engineering |
Bernard Shum Investment & Operations 64932468 Rachel Lei Partner 85182766 |
|
MedTech Alliance 2 (MTA2) |
Health & Biomedical Sciences Advanced Manufacturing & Engineering |
Lee Wei Kang Accelerator Manager, Accuron Andrew Kwa Accelerator Manager, Mr Lu Yoh Chie Samuel Chen Accelerator Manager, EDIS |
|
Millennia-VFT Ventures |
Urban Solutions & Sustainability (Water focus) |
Seah Kiat Seng Managing Director, Millennia Investment Management Liaw Kok Eng Founder, VFT Ventures 6327 8998 |
|
Silicon Solution Partners |
Advanced Manufacturing & Engineering |
David Ng Managing Director/ CEO 98251990 Kwok Lih Venture Partner 97998536 Saw Biing Huei Venture Partner 97913398 Carmen Gan Venture Partner 96782076 |
|
Small World Accelerator |
Advanced Manufacturing & Engineering Urban Solutions & Sustainability |
Frank H. Levinson Managing Partner frank.levinson@gmail.com +1 408.621.7300 Chong Chiet Ping chietping.chong@gmaccelerator.com +65 9618 1350 |
|
Trendlines Medical -K2 Global |
Health & Biomedical Sciences |
Eric Loh CEO, Trendlines Medical Singapore Ozi Amanat Founder, K2 Global VC |
ANNEX D: INFORMATION ON APPOINTED CO-INVESTMENT PARTNERS
Armstrong Industrial Corporation Limited
Established in 1974, Armstrong is a successful Asia-wide manufacturing business providing advanced products for noise, vibration and heat management to a blue-chip client base in the automotive, electronics, industrial, consumer and healthcare sectors. The focus is on delivering innovative material and engineering solutions from its 17 locations throughout Asia with an entrepreneurial mindset. Technical collaborations with established global partners in Japan, Europe, North America and India have always been a core part of its growth strategy. Armstrong will leverage its manufacturing capabilities, technical network and customer base for promising startup companies it works with in the biomedical-healthcare and advanced engineering sectors to realize synergistic and meaningful outcomes.
HealthXCapital Pte Ltd
HealthXCapital is a platform providing smart, connected capital to healthcare startups focussed on emerging markets in South East Asia and India. HealthXCapital is anchored by Jungle Ventures, Singapore and counts Apollo Hospitals- India's largest healthcare provider and Eight Roads as some of the other investors. The firm focuses on early stage investments in disruptive & impactful healthcare startups. The firm has a unique model where it has built strategic networks for evaluation & commercialisation across key geographies to subsequently help accelerate the development of its portfolio companies.
Heritas Capital Management Pte Ltd
Heritas is a Singapore-based venture capital and private equity firm focused on healthcare, education and technology sectors across the Asia-Pacific region with assets under management of over S$250m. Heritas’ healthcare investment focus includes biotech, medtech, diagnostics and digital health addressing huge unmet needs and growth opportunities in chronic disease management (e.g. diabetes, mental health, cardiovascular), precision and personalised medicine, and aging and wellness. Heritas takes a hands-on and customised approach in providing funding, mentorship and access to business network to help build promising ventures and Asian growth companies.
IncuVest-Avior Pte Ltd
Incuvest-Avior is a technology investment firm focused on supporting experienced teams with deep technology IP in Advanced Manufacturing, IoT, Materials, AR/VR, AI and MedTech. It partners with incubators and accelerators from around the world, and have especially strong networks in Singapore, China and Japan. Incuvest-Avior has invested in over 40 companies that are in Industrial and Medical 3D Printing, innovative and green specialty chemicals for manufacturing, gigabit wireless solutions, precision plastic solutions, robotics and vaccine manufacturing. Its management team consists of seasoned entrepreneurs and investors backed by years of sector domain expertise and strategic organisational know-how.
Millennia-VFT Ventures Pte Ltd
Millennia-VFT Ventures brings together a team of experienced investment and capital markets professionals who are currently managing regional private equity and public equities funds, and seasoned entrepreneurs that have strong water domain expertise and a successful track record of nurturing and guiding start-ups, including ZWEEC Analytics, a water monitoring technology spin-off from A*STAR. In the co-investment program with SPRING, Millennia-VFT Ventures will focus on investments in the Urban Solutions and Sustainability sector and in particular the water sector.
MTA2
Established in 2018, the MTA2 is a Singapore accelerator investing in technology startups. MTA2 builds upon the experience of the Med-Tech Alliance which was formed in 2014, and has done four investments in early stage medtech startups. The MTA2 consortium is made up of Economic Development Innovations Singapore (EDIS), Accuron MedTech Group and Mr. Lu Yoh-Chie, the Founder and former Executive Chairman of Biosensors International. MTA2 aims to accelerate venture creation or startup formation through financing and mentorship in three sectors – Health and Biomedical Sciences, Advanced Manufacturing & Engineering, and Urban Solutions and Sustainability.
Silicon Solution Partners Pte Ltd
Silicon Solution Partners (SSP) is an incubator, accelerator and fund management company. SSP Founding Partners and Management team have cumulatively more than 300+ years of experiences in the electronics and semiconductor related industry, and a global network of business and operations engagement, as well as hand-on exposure participating in startups from seed stage to successful IPO. SSP partners startups to provide complete eco-system support to enable startups that focus in developing innovative electronics solution with integrated hardware/software & data analytics deployment. The deployment of SSP resources will lower the cost in term of CAPEX and OPEX incurred by each startup, and enable strategic supply chain support and customer endorsements. These efforts will further enhance their commercial performance at early stage and their portfolio scalability.
Small World Accelerator Pte Ltd
Small World Accelerator (SWA) is a continuation of Small World Group, an NRF-TIS supported incubator with 17 investee companies mostly in the Photonics, Advanced Materials, Sustainability and Advanced Manufacturing/Engineering sectors. SWA has an ongoing relationship with Phoenix Venture Partners (PVP) which is a USA based series A/B venture fund that has similar focus. PVP’s strategic investors include MNCs in the areas of pharma, electronics, chemicals, consumer products and photonics. OPS Singapore, a major investor in SWA, is involved in R&D and manufacturing of engineering materials and polymers. The company has strong access to Japanese materials technology and markets, and has distribution footprint in Asia Pacific, delivering to global brand names. SWA is managed by a team of experienced partners with proven track records in technopreneurship and management in areas of Technology, Operations, Supply Chain and Business Development.
Trendlines Medical-K2 Global
Trendlines Medical-K2 Global is a collaboration between Trendlines Medical Singapore (Trendlines), a medical technology startup incubator, and K2 Global (K2), a $250 million venture capital firm that invests in technology companies. The collaboration aims to discover and invest in medical technology startups seeking early stage financing, and leverages the strengths of the two entities to lead the portfolio companies toward success in the global market. Established by The Trendlines Group (www.trendlines.com) and B. Braun (www.bbraun.com), Trendlines is an actively hands-on investor, involved in all aspects of its portfolio companies from technology development to business building. K2, founded by Ozi Amanat, seeks to bridge Asia with the U.S and makes early to growth stage venture and private equity investments.
[1] “Deep technology startups” refers to startups whose business models are built critically around proprietary technologies, research or hardware, and for which significant developmental efforts (e.g. product design and prototyping, product testing, clinical trials etc.) are needed before their products are ready for sale.
Examples of traits exhibited by deep technology startups include:
[2] This includes the Startup Enterprise Development Scheme (SEEDS), Business Angels Scheme (BAS) and Sector Specific Accelerator (SSA) scheme.