EDB launches S$10 million programme to support companies venturing into new growth areas
Office workers at Raffles Place after the circuit breaker period. (Photo: Gaya Chandramohan)
SINGAPORE: A new S$10 million programme will support large and established Singapore companies in venturing into new growth areas beyond their existing core businesses.
The Corporate Venture Launchpad is part of broader efforts by EDB New Ventures, the corporate venture building arm of the Economic Development Board (EDB), to advance the venturing ecosystem in Singapore, the board said on Thursday (May 6).
It will see venture studios appointed by EDB New Ventures work alongside companies to incubate fresh business ideas within six months.
Four venture studios have been appointed: BCG Digital Ventures, FutureLabs Ventures, Leap by McKinsey and Rainmaking.
Companies can launch new ventures that combine the "speed and nimbleness" of a start-up with the competitive advantages of the parent company, such as customer relationships and deep domain expertise, added EDB.
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Large local and multinational companies in Singapore are embracing innovation and entrepreneurship to keep ahead of competition and disruption, said EDB chairman Beh Swan Gin.
As they pursue opportunities in new sectors, these ventures hold the potential to become a growth driver for the Singapore economy, he said.
"The Corporate Venture Launchpad programme seeks to spur companies to create new ventures from Singapore that can scale to become globally competitive businesses.
"These corporate ventures will complement our vibrant start-up ecosystem, to create exciting job opportunities and new entrepreneurial career pathways in Singapore," said Dr Beh.
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Under the programme, a small team will support each participating company by undertaking "concept validation sprints" to collect customer insights, test the desirability of business concepts and determine viability before building the product or service for the new venture.
These sprints apply venture-building methodologies to develop ideas into an investible business, with a plan that is data-backed and validated through in-depth testing with the market in an accelerated time period of three to six months, said EDB.
The launchpad will run for one year and is expected to have capacity for 20 concept validation sprints. EDB New Ventures will support up to 50 per cent of the cost of each sprint.
For high potential ventures launched from the programme, it may provide further risk-sharing capital and value creation support to see them through their early stages of growth.
The Corporate Venture Launchpad opened for applications on Thursday.
