Most Singapore government support for start-ups comes as grants – non-repayable funding for a defined project. Startup SG Equity is different. It is a co-investment scheme: the government invests real equity capital into your company, alongside independent private investors, and takes shares just as they do. For a technology start-up trying to close a funding round, that government participation can be the catalyst that gives private investors the confidence to commit.
Startup SG Equity is administered by Enterprise Singapore, with SEEDS Capital (its investment arm) and appointed co-investment partners managing the deals. In Budget 2026, the government set aside a further S$1 billion to top up the scheme, with a particular focus on deep-tech start-ups moving from early stage into growth stage – a strong signal that equity co-investment remains central to Singapore’s start-up strategy.
This guide explains how Startup SG Equity works, who qualifies, the co-investment ratios and caps, and how it fits alongside the other Startup SG programmes.
How co-investment works
Under Startup SG Equity, the government does not simply hand over money. Instead, when a qualifying start-up raises capital from an approved third-party investor, the government invests alongside that investor on the same commercial terms, in return for shares. This has two effects. First, it increases the total capital available to the start-up. Second, and just as importantly, it reduces the risk for the private investor, because the government is sharing that risk pound-for-pound (or, more precisely, in a defined ratio).
Because the government invests pari passu with the private investor, Startup SG Equity is not “free money” – it dilutes the founders like any equity round. But it is patient, aligned capital that crowds in private investment rather than crowding it out.
Two tracks: general tech and deep tech
Startup SG Equity operates through two broad tracks, reflecting the very different capital needs of ordinary technology companies and capital-intensive deep-tech ventures.
| Feature | General Tech | Deep Tech |
|---|---|---|
| Typical focus | Software, digital, consumer and enterprise tech | Advanced manufacturing, biotech/medtech, clean tech, agri-food tech and other R&D-intensive fields |
| Government co-investment cap (indicative) | Up to around S$2 million per company | Up to around S$8 million per company (with growth-stage support expanded under Budget 2026) |
| Co-investment ratio (indicative) | 7:3 (government:investor) on the first tranche, then 1:1 thereafter | 7:3 on a larger first tranche, then 1:1 thereafter |
The ratios mean the government takes a larger share of the risk on the earliest, hardest-to-fund capital, then matches investment one-for-one beyond that. The precise caps, tranche thresholds and ratios are set by Enterprise Singapore and are periodically revised, so always confirm the current parameters at enterprisesg.gov.sg before you plan a round.
Who is eligible?
Startup SG Equity is aimed at Singapore-based technology start-ups with strong intellectual property and global market potential. While detailed criteria vary by track and partner, a qualifying company generally needs to:
- be a Singapore-incorporated private limited company, with core operations here;
- be early stage (deep-tech growth-stage support is being expanded, but the scheme targets younger companies);
- have a differentiated, IP-based technology and a scalable, ideally global, business model;
- have secured a committed third-party investor who is prepared to invest on terms the government can match; and
- not be substantially funded or owned in a way that disqualifies it under the partner’s rules.
The requirement to have a committed private investor is central: Startup SG Equity is designed to amplify private investment, not to replace it. You cannot approach the scheme in isolation; you approach it with (or through) an approved co-investment partner who is investing in you.
How to access the scheme
The practical route
- Raise from an approved co-investment partner. The most common path is to secure investment from one of SEEDS Capital’s appointed co-investment partners (venture funds and angel networks). The government then co-invests alongside them.
- Approach SEEDS Capital directly for deep tech. Deep-tech founders can engage SEEDS Capital, which co-invests directly in suitable ventures.
- Prepare investment-grade documentation. You will need a solid business plan, financial model, cap table and IP position – the same materials any professional investor expects.
- Complete due diligence and legal work. Once terms are agreed, the round is documented and the government’s investment is made on the same terms as the private investor’s.
Because this is an equity transaction, founders should pay close attention to valuation, the cap table and shareholder rights. Instruments such as share issues and convertible instruments need to be documented correctly, and every new investor should be properly recorded in your statutory registers and share certificates.
Common mistakes founders make
Founders sometimes treat Startup SG Equity as if it were a grant, and are surprised to find the government becomes a shareholder with the same downside exposure as their private investors. A few pitfalls recur:
- Approaching the scheme without a lead investor. The scheme co-invests; it does not originate rounds. Secure a committed, approved investor first.
- Neglecting the cap table. Bringing in government and private equity together can complicate future rounds if the cap table, option pool and share classes are not planned properly from the start.
- Weak IP protection. The scheme favours differentiated, defensible technology. Founders who have not secured ownership of their intellectual property weaken their case.
- Poor record-keeping. New investors must be recorded correctly in the register of members and issued share certificates. Sloppy statutory records surface as red flags in due diligence for the next round.
- Assuming the parameters never change. Caps, ratios and thresholds are revised periodically; always work from the current figures published by Enterprise Singapore.
Getting the corporate housekeeping right at the co-investment stage pays off later, because every subsequent investor and acquirer will scrutinise how cleanly the company has been run.
How Startup SG Equity fits with other support
Startup SG Equity sits within a wider ecosystem of Singapore government support. Early-stage founders often begin with the Startup SG Founder grant and mentorship, use project grants such as those compared in our EDG vs PSG vs MRA guide, and access debt funding through the Enterprise Financing Scheme. Startup SG Equity is the equity layer that helps convert that groundwork into a fundable, scalable company. Our guide on stacking government grants explains how to sequence these instruments without falling foul of overlapping-funding rules.
Startup SG Equity can be a powerful lever, but it comes with the responsibilities of taking on equity investors – governance, reporting and a properly maintained cap table. If you are preparing a co-investment round and need help with the corporate structuring, share issuance and statutory records, our team can make sure your company is investment-ready. For the latest scheme parameters, always confirm with Enterprise Singapore.
— The Editorial Team, Raffles Corporate Services