The team members (including myself) are not Singaporean, can we apply?
There are no restrictions on nationality as long as the business primarily operates in Singapore and is a registered commercial entity in Singapore.

Do you fund ideas that do not yet have any sales?
Definitely! Most ideas do not generate any sales at the point of acquiring investment. The focus will be the scalability of the idea and potential commercial viability in the future.

Do you require people to give up their day jobs/studies?
Our experience working with entrepreneurs taught us the importance of them devoting most of their time in their ideas. But hey, It’s your company, do what you want! We do have applicants engaging in other activities while keeping their company going.

What is the typical equity stake that the scheme takes for the early funding?
Sorry! we do not have these figures available as it depends heavily on the negotiation with NUS Enterprise should there be an interest in funding your project.

What are typical conditions attached to the funding (e.g. location of the company, board of directors, exit options, anti-dilution clauses, etc.)?
Typically, this funding is a grant. If a company generates a net revenue of above $1M, the company will return $50k instead of $55k. The rest of the repayment conditions will depend on the company’s situation or status at the point of funding and there will also be a NUS repayment scheme in the agreement contract.

Also, for the office space, once the applicants receive the grant from us, they will have to pay a nominal rental fee. Terms and conditions will be discussed during the agreement negotiations and it will vary depending on the company’s status.

Who are the investment decision makers?
NUS Enterprise has put together a steering committee comprising of executives with entrepreneurial and investment experience. They would be screening through your ideas and deciding if a funding is possible.

What is the exact funding process and what is the time frame?
First, you have to fill up a 1 page executive summary and submit it - we will then get back to you within 2 weeks.

If we have an interest in your idea, you will be required to present your idea to the committee formed by NUS Enterprise. If the decision to fund goes through (cheers!), we will then contact you with a terms sheet.

Finally, upon reaching an agreement and signing of the term sheet, the funds should be transferred in no later than two weeks.

How many companies have actually received any funds yet?
As of July 08, we have 12 and a couple more pending!

How have the companies you have supported performed?
The companies are still very young but have shown tremendous potential! At this point, it is too early to dictate how they will do in the future, though we would love to say otherwise!

Do you guarantee non-disclosure?
Of course! We take specific measures to prevent your ideas from leaking to any third parties. Both NUS Enterprise and the executive team of Garag3 are bounded by specific non-disclosure agreements and ethics to protect the interests of our applicants.

What is the attitude towards entrepreneurs with failed companies, what are the consequences for subsequent projects?
Not a problem! We accept that failures and success is part of the business. Many a time, entrepreneurs who failed and tried again achieved success in their following venture. It is both in Garag3 and NUS Enterprise’s interest to see companies succeed. Thus we have derived a comprehensive strategic plan to help our companies against failure.

Do you have good contacts to venture capitalists so that you can help securing subsequent funding in later rounds? If you have an example of one of your companies who have already gotten to that stage that would be helpful!
Yes! Many executives in Garag3 have experiences working in Silicon Valley and access to a comprehensive venture capitalist network. It is part of our business to value-add to YOU by providing the linking opportunities. We have connections in many countries as well, such as but not limited to Sweden, India, China, US, etc.

Further to that, we also provide opportunities for further rounds of funding for start-ups under this Microfunding scheme. However, our most of our startups are still developing and have not moved on the additional funding rounds.

Should applicants provide information in addition to the application form (e.g. a business plan)?
For now, only the 1 page submission executive summary is required. We will contact you if we require additional information.

What are the funding criteria?
The main funding criteria is dependent on the company’s or project’s innovation, business model, milestones, scalability, defensibility and competition. There are other minor considerations too.

What are some of the things my company will have to offer NUS in return for funding?
This is negotiable and depends on what your company has to offer, the stage of development your company is at and the future road map of your company.

Who owns the IP generated from this scheme?
The company owns the IP but NUS will take a share should the IP be sold or licensed.

If a company has secured a private investment, will this MFS scheme affect the current shareholding structures?
No.

How much equity does my company have to offer upfront?
This is subjected to the current stage of development at which the company is currently at.

Is the equity dilutable or protected?
It can possibly be either.

Of the $55K in funding, how much is in cash, and is it given to us upfront?
The $55K is a grant. This grant will be given in 2 tranches. The first tranche will be given upon signing of the Agreement and the second tranche upon delivery of specific milestones, which is negotiable.

Is incubation / office space provided?
Office space can be provided at the Garag3 which is a space for a cluster of Interactive Digital Media (IDM) based companies under the fund. It will be made available based on availability and fit.

Is the repayment of the 50K interest-free loan at the point when we hit 1M revenue?
Yes.

Do we ever have to repay the $55K?
Yes, if and when the company reaches the 1 million dollar revenue mark.

How are the mentors allocated to us?
The advisor mentors appointed by NUS Enterprise will be allocated to the companies based on the expertise of the advisor mentor - his/her expertise will be matched to the business of the company.

How much equity do the mentors take from us?
This depends on the negotiations that occur between NUS and the appointed advisor mentor.

That’s it!
You read everything - well done! So come along and apply for funding!