EDB commits additional US$24.5 million funding, facilitates partnerships with startups

• EDB has so far helped 24 companies launch 14 ventures, with more to come
• To work with 9 firms to simplify collaborations between S’pore firms & startup

The Singapore Economic Development Board (EDB) is committing US$24.5 million (RM106 million) in fresh funds over the next two years to continue driving corporate venturing in Singapore. In a statement, the agency said the third edition of the Corporate Venture Launchpad (CVL 3.0) also aims to make it easier for Singapore-based companies to form partnerships with startups.

It added that, together with nine appointed CVL 3.0 partners, EDB’s New Ventures team will work with selected companies to innovate in new growth areas. The partners will guide companies in creating new ventures and establishing capabilities for effective corporate-startup collaborations.

The first edition of CVL was launched in May 2021 with US$7.6 million (RM32.8 million) in pilot funding. In July 2022, EDB expanded the programme to include more companies and committed additional funding of US$15.3 million (RM66 million). Since the launch of CVL, EDB has supported 24 companies in launching 14 new ventures, with more ventures in the pipeline.

[1 MYR = 0.231206 USD]

These ventures are headquartered in Singapore, target regional markets, and create exciting job opportunities there. They have also received over US$53.7 million in follow-on funding from existing and new investors. At least ten of these companies are building multiple ventures, with some establishing dedicated venturing outfits. Six of the new ventures are focused on opportunities in growth areas such as sustainability and AI.

Jacqueline Poh (pic), managing director of EDB, said: “The CVL programme has been a catalyst for companies to innovate for growth by leveraging Singapore’s world-class business ecosystem. The programme reaffirms EDB’s commitment to partnering with businesses to deepen their innovation footprint here through venture creation and drive win-win collaborations between corporates and startups.”

Expanded programme to support corporate-startup partnerships

The expanded CVL 3.0 programme will introduce support for corporate-startup partnerships, providing an additional pathway for companies to access innovative products, services, and technology.

Instead of creating their own venture, the companies will work with Open Innovation Partners to connect with existing high-quality startups, partnering to achieve meaningful commercial outcomes. Such outcomes include co-developing products in Singapore to unlock new revenue streams or adopting solutions that boost productivity and reduce costs.

It added that startups will have more opportunities to grow by tapping into real corporate demand in Singapore, uplifting the local entrepreneurial ecosystem.

An example of how corporate-startup partnerships can drive innovation and growth is Siemens' collaboration with Artisan Green. Isabel Chong, senior vice president and head of Siemens Digital Industries in ASEAN, said: “Partnering with startups is part of our long-term growth strategy at Siemens. For example, our collaboration with local hydroponic farm Artisan Green leverages our automation and digitalisation solutions to increase its output and scale operations. It exemplifies the synergy between our technological expertise and Artisan Green’s approach to urban farming, and a shared commitment to the sustainable production of high-quality, locally grown produce.”

She added that she is pleased that EDB’s Corporate Venture Launchpad programme is dedicating support to nurturing corporate-startup synergy and driving greater industry-wide collaboration.

Continued focus on strengthening long-term venture creation capabilities

CVL 3.0 will continue to support companies in diversifying business opportunities by creating new ventures headquartered in Singapore. In collaboration with Venture Studio Partners, participating companies will learn how to validate concepts within six-month sprints, as well as build sustained, long-term venture creation capabilities.

Global specialist engineering company IMI plc launched its in-house venturing arm, IMI Venture Studio, after its participation in CVL, to further develop sustainable energy ventures. Marco Placidi, head of Venture Studio at IMI plc, said: "CVL has been a key factor in IMI's decision to build its venture studio in Singapore. EDB has fostered a solid ecosystem of venture partners and corporates, which is helping IMI launch a series of ventures focused on decarbonisation and sustainability in the energy and industrial sectors.”

He added that EDB's advisory support through the venture sprints and beyond has been critical in establishing successful ventures and attracting experienced, entrepreneurial talent. “Through venture building, IMI sees a lot of potential for new business growth and technology innovation in the years to come,” Placidi said.

The nine CVL partners comprise Venture Studios and Open Innovation Partners. They will provide tailored support based on the experience level of each company, bringing their unique capability-building offerings, methodologies, talent, and resources.

Other support features of CVL 3.0 include:

• EDB co-funding up to 50% of professional services and manpower costs for each concept validation sprint and startup partnership initiative;
• Additional grant support will also be available for select companies to launch and scale startup pilot projects, co-developed with their startup partners;
• Where relevant, EDB will deploy its venture builders and advisory support to be part of the concept validation sprints and startup partnership initiatives, respectively;
• Potential access to regional and global ecosystem connections, including investment opportunities from EDBI, and a network of relevant VCs and family offices.

Applications for companies to participate in CVL 3.0 are now open. Click here for more details.