This month, the Singapore Entrepreneurship Committee (EnRC) released a list of recommendations to enhance the growth of Singapore’s Start-Up Scene. One of these recommendations included making Singapore into a hub for equity-based crowdfunding. This is great news, as it’s in line with what we’re trying to achieve. We’re currently working closely with regulators to advise on Equity Crowdfunding frameworks and business models which would form the basis for locally relevant solutions. We think there’s a lot of potential for Singapore to be a crowdfunding hub not just regionally–but globally as well.
Currently, Singapore’s start-up scene is heavily dependent on government financing (which accounts for close to 70% of early stage funding) with only 4% of local venture capital coming from corporates. Equity crowdfunding will allow Singapore’s start-up scene to transition to a funding environment that is driven more by the private sector and individuals, narrowing the early stage funding gap.
Another recommendation released by the EnRC is to increase the opportunities for collaboration between large corporations and start-ups, through platforms like crowd-sourcing portals or co-innovation projects. This is what we’ve been working on with our Enterprise Solutions that we introduced last year, working with big brands to help them tap into the collaborative economy. That includes giving corporates crowdsourcing and crowdfunding capabilities, managing corporate crowdfunding initiatives, and opening up and digitizing corporates’ innovation processes and CSR initiatives. (If you’re curious, just e-mail us at enquiry[at]crowdonomic[dot]com!)
Here are the rest of EnRC’s recommendations:
1) Increase sources of private sector capital
2) Engage private sector players to coordinate and drive efforts from within the entrepreneurship community to build a collaborative culture and environment
3) Help startups venture abroad
4) Facilitate business collaboration between large corporations and startups
5) Focus on key sectors, and provide these startups with better infrastructure and access to funding
6) Facilitate startups’ access to a ready pool of talent
7) Expose youths through overseas immersion programmes
8) Foster youths’ interest in emerging technologies such as additive manufacturing, 3D printing