Promising start-ups here can now apply for special funding earmarked for them in the Fortitude Budget, Singapore's fourth Budget this year.

Deputy Prime Minister Heng Swee Keat said in his speech on May 26 that $285 million would be allocated to help start-ups sustain innovation and entrepreneurship activities, gain access to credit, and bridge the financing gap they face amid the coronavirus pandemic.

The Special Situation Fund for Start-ups (SSFS) will be administered by EDBI, the corporate investment arm of the Economic Development Board, and Seeds Capital, the investment arm of Enterprise Singapore, they said in a joint statement last Friday.

Under the scheme, EDBI and Seeds Capital will invest in selected start-ups with private sector co-investors in a one-to-one ratio. The scheme will end when the funds are fully committed or by Oct 31, 2021, whichever is earlier.

This is not the only scheme rolled out to help start-ups so far.

Earlier this year, some $300 million was set aside to help deep-tech start-ups under the Startup SG Equity scheme, in which the Government and qualified third-party investors are co-investors.

The SSFS will support early-to late-stage innovative start-ups, though EDBI will focus on late-stage start-ups with larger funding needs and a wider employment base, while Seeds Capital will focus on the early-stage ones. Applications for the fund will be assessed on a case-by-case basis.

The start-ups should be incorporated as private limited companies with their headquarters and key value-added activities in Singapore.

EDBI and Seeds Capital are looking to start-ups from diverse sectors to apply. The start-ups should possess strategic capabilities like technology and innovation competencies or sustainable competitive advantages that can contribute to Singapore's national priorities.

EDBI president and chief executive officer Chu Swee Yeok noted that in the current climate, even start-ups that were doing well before the pandemic could have cash-flow difficulties.