SINGAPORE: Exploit Technologies – the marketing and commercialisation arm of A*STAR – is hoping to bring angel investors and start-ups closer.

It has launched an Angel Investment Management (AIM) programme to help start-ups by reducing risk for investors.

Setting up a new company is an uphill task and start-ups usually have problems getting funding because they lack a track record.

A*STAR hopes to change that by giving start-ups a leg up by providing investors with opportunities at a lower risk, with a long-term view.

Walter Lee, senior vice president of A*STAR, said: "Start-up businesses are by nature not short term, so you're looking at a time space horizon of investment that can last from three years to five years, depending on the industry that we are talking about. In biotech, it's even longer – we're talking about a seven- to ten-year horizon."

The AIM programme will coach start-ups on the finer points of doing business before presenting them to potential angel investors.

Investors have welcomed the new programme, saying A*STAR's involvement will give them greater confidence in a start-up.

Alan Lye, a start-up investor, said: "The most important point is that being an A*STAR incubated company, the technologies obviously have been researched, so I'm not depending on some young start-up to explain to me or to assure me that the technology is real.

"Secondly, being an incubated company, A*STAR would have checked through the hygiene of the company. I don't have to worry about the due diligence of it."

Currently, A*STAR is grooming six start-ups under the new programme.


- CNA/so