Anticipation and then, disspointment

Last week, I was a bit on edge. I read how the RIEC was meeting again, and I knew that the outcome would partially address the issue of early stage VC in Singapore, and hopefully would answer some of the issues being highlighted by entrepreneurs here in Singapore.

On Friday night, I saw the running banner (at the bottom of the screen) at Channel News Asia, and boy, was I excited. Had these issues been resolved, what IS the announcement?

Unfortunately had to be called away during the regular news update, so the earliest I could catch the new was 10 pm Singapore update. Zip, nothing more than generalities. Disappointed.

On Sat, I eagerly opened up the Straits Times, to read more, and again I found the piece on VC funding lacking. Disappointed again.

So I went into the NRF website to see if they had done a press-release. The Cheng hu types usually have quite a comprehensive press release.

THis is what I got, and I only copy and paste the bit on VC funding.

"To spur the formation of start-up companies, funding will be provided for various enterprise support structures, such as proof-of-concept studies and technology incubator programmes, which will bridge the gap between university research and market needs. In addition, several early stage venture capital (VC) funds, managed by professional VCs, would be set up with matching investments from the government. These funds would invest in technology-based start-up companies in Singapore, particularly those linked to the IHLs."

Under the Annex A, there was more infomation:
1) We know the amount to be committed is 350 MM from 2008 - 2012, translating to 70 MM per year.
2) However, this is to be split between the Academic Entrepreneurship portion (50 MM), Creating Enterprise Support Structures (160 MM)  and Tech Transfer (125 MM)
3) Therefore, for the VC portion, the amount allocated is out of 160 MM over 5 years, translating to 32 MM per year.
4) Under this funding, it would include
- POC grants
- Incubators
- Early stage VC funding
- Disruptive Innovation Incubator.
5) Of interest would be the early stage VC, which would have a 1:1 co-funding for funds raised by VCs in Singapore companies.

This is a good start, but it is definitely short of details. I have many questions,
- As I read it, it would seem that NRF would be funding the VCs, or is it matching the investment made by the VC into the company (ala SEEDs)
- What is the basis of selection for the VC?
- Who manages the VCs?
- What are the terms of exit, IRR or is NRF jumping into this knowing full well that it may score a GOOGLE exit, or worst case scenario, loose it all?

Good first step, now to see it in action.

To read the entire press release, go here.

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