MFS iJam Frequently asked questions

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. There is a new MDA requirement of at least one full time local founder (PR/Citizen) who has to hold 20% of the project stake.

Do you support 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 on the scalability of the idea, potential commercial viability in the future and how innovative is the idea.

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. It is not a hard requirement but the chances of getting funding will be affected.

Can we apply if we are a company already?

The company has to be registered as a legal entity and incorporated in Singapore.

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 supporting your project.

What are typical conditions attached to the scheme (e.g. location of the company, board of directors, exit options, anti-dilution clauses, etc.)?
Typically, this funding support 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 free rent for 12 months. Terms and conditions will be discussed during the agreement negotiations and it might vary depending on the company’s status.

Who are the investment decision makers?
NUS Entrepreneurship Centre 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 days.

If we have an interest in your idea, you will be required to present your idea to the committee formed by NUS Entrepreneurship Centre. If the decision to support goes through (cheers!), we will then contact you and you will have to do a 15mins pitch to the panel.

Finally, upon final approval from MDA. We will pass you the term sheet and service agreement and upon signing of the term sheet. The entire process (depending on which part of the month you apply) might take up to 2months.

How have the companies supported under the MFS grant 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 check out Tyler Projects that did the highly successful Facebook game Battle Stations.

Do you guarantee non-disclosure?
Of course! We take specific measures to prevent your ideas from leaking to any third parties. Both NUS Entrepreneurship Centre 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 plan and execute 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 criteria?
The main criteria is dependent on the company’s or project’s research & development in relevant technologies, innovation in terms of creative, social or business model & concepts in relevant IDM projects.

What are some of the things my company will have to offer NUS in return for support?
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 licensing 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 3 tranches. The first tranche will be given upon signing of the Agreement and the second& third 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 program. 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 do we leverage on the mentors?
We will constantly schedule meetings with the mentors to meet the project teams to allow both parties to interact and understand each other.

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

Can I have a FAT paycheck once I get the grant?

The grant will cover up to a cap of Sing$600 per founder per month.

What can we spend the grant $ on?

The grant is meant for costs that arises from developing the product. Examples of cost are equipment and software, research expenses, third-party manpower costs including advisory costs, full time employees hired to develop product.

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