Venture Capital
In addition to grants and fiscal incentives, funding in the form of venture capital will also be made available, in recognition of the fact that risk capital is critical to the creation of start-up businesses, particularly in sectors where start-up costs are high. In the electronics sector, local companies are unable to compete with foreign players in high-precision manufacturing due to the high technology and large capital investments involved. In addition, venture funding will also enable entrepreneurs to start up agriculture and food-related businesses which are being promoted in the NCER initiative.
An investment fund will therefore be established for early stage companies in promoted manufacturing activities in the Northern Corridor. This includes SMEs investing in activities that would synergise with the local E&E, agricultural, sustainable materials and biotechnology sectors.
The fund will be managed by a professional and experienced fund management company. This company, together with the NCIA, will play an active role in raising private-sector capital for the fund, and encouraging take-up of the funds. This would include marketing opportunities for people to become entrepreneurs, identifying technologies that can be commercialised and providing nurturing services to help investee companies grow, e.g. helping them in their overseas expansion.