S$285m support for startups: Will vetting be stringent enough?

The Business Times

Quest Ventures Jeffrey Seah commented that “with investors allocating less money to new investments and some struggling with capital calls, even good startups might not be able to secure enough funding. A government co-investment scheme could help fill the gap.”

It is crucial that the standards for assessing such startups be extra-stringent. Those millions of dollars could have been directed towards more worthy causes during a downturn, instead of an ecosystem that in recent years has favoured blitz-scaling and cash-burning companies.

Joel Shen of DWF adds, “If the startup can’t raise money or finance its operations using its own cash flow, then it fails – just like any other business. What makes the startup more deserving of government support than other businesses?”

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