Most start ups require funds. Funds can come from several sources - personal savings, borrowings from friends and relatives, borrowings from financial institutions (such as banks, financial houses) and institutional support (such as venture capitalists, equity funding and private funders) and even from the Internet.

* Please note that we do not advocate that you use these organisations listed. All information provided are for your information only. We are not to be held liable for any action on your part should you decide to take up the services provided by one of the organisations mentioned in our pages.

Traditional Funding Sources

1) Government Funding

The Singapore Government provides a series of fundings to both locals and foreigners who set up businesses which are current flavours of the month. Highly desired business, especially if they were to do a startup in Singapore or to bring in their expertise to Singapore, could avail themselves of several types of fundings:

a) SEEDS - The StartUp Enterprise Development Scheme (SEEDS) is a S$50 million equity finance fund for startups and new businesses administered by EDB . Successful applicants have in the past, been engaged in a range of IT and product design services. Under this scheme, EDB takes an equity stake in a seed company and matches, up to a maximum of S$300,000, every dollar the company raises from an independent third party investor or investors. The startup must be incorporated in Singapore, but its founders need not be Singaporeans.

b) DEALS - Deals Exchange Online for Startups (DEALS) is a Government initiative (led by EDB) to create a gateway for new business and funding opportunities for start-ups and emerging companies. They seek to connect your business to the right investor.

c) MicroLoans - This is another initiative from the government and is administered by SPRING Singapore. The Micro Loan Program is a fixed interest rate financing programme for startup and small enterprises, particularly those that are asset-light and knowledge-intensive. Enterprises can use the loan to establish new businesses, modernise and automate operations, expand existing businesses, and augment working capital needs.

There is a whole host of government funds and grants available. At our last count, there were some 40+ of them but it is a task to find them. We used to have a list from SPRING Singapore but we doubt if that list is still valid, since the list was in 2003.

2) Private Funding

a) Banks and Financing Companies are the traditional sources of funds for many companies but unfortunately many or most banks are not willing to fund new companies. Established companies are able to use this source of funds in the form of overdraft or some other form of credit.

b) Savings from and Borrowings by the founders of startups seem to the usual way of funding by the small companies, particularly the SMEs.

Take a look at the several sources of funds highlighted in the page of Action Community for Entrepreneurship (ACE), initiated by SPRING Singapore - ranging from Venture Capitalists, Equity Investors to traditional banks.

3) Funding from Internet Programmes

It could be a misnomer to term this as funding. The term "source of fund" may be more appropriate. Funds from internet programme is a byproduct of the Internet Age. The peculiar requirements and perception of the Internet and the way Internet Business is done gave rise to the concept of eyeballs and pull and push technology.

In the heady days of the Internet boom, the belief was that if you could attract eyeballs to your website, business purchases would follow. This proved to be a myth as many sites resorted to freebies to attract.

Now that the Internet Business is on the expansion phrase, the concept has been modified. Companies still want to attract and advertise and advertising companies have to come up with ways and means to do so. Thus is born this source of funding for individuals looking to build up their own seed capital without resorting to friends, banks or VCs.

If you want to obtain funds from the Internet, there are a few options! Yes without strings attached, without any need to put up or pay a hugh investment for it, but you have to keep your greed within check! These are:

1) HYIP - High Yield Investement Programme

HYIP, which stands for High Yield Investment Program is just what it sounds like, a program offering a high yield investment. HYIP's are offering probably the most profitable investments available today. Interest rates of up to 100% a month is not uncommon. In general the interest rates are ranging anywhere between 5 – 250% a month.

HYIP's are using different investment strategies. Some invest in stocks, others in property. There are even HYIPs investing in other HYIPs. Probably there are also programs that are not investing at all. These belong to the scammers. You’ll read more about unserious HYIPs further down this text .... To see a listing of them in one site, click here . To hear what others say about HYIPs - click here to read about those who won and those who lost; those who are genuine and those who are scammers.

2) Being Paid To Surf

Now that the Internet has become the biggest international market for buying and selling goods, advertising on it has become a major industry. Many compaines will pay good money to have people view their advertisements or websites. It means that they are being exposed and promoted. Due to this, a large quantity of "Paid to Surf" programs have developed. These programs, through use of small bar programs rotate through a series of ads while you are either on-line, or surfing the web. And PAY you to view them! Along with these there are also a number of other programs that you can use to make money while surfing, and almost all of them will PAY you to have your friends view their ads as well!

To find such programmes, simply go to either Yahoo or Google and go to their Search Box and type in "Paid to surf" as the key words. A whole list of sites will be made available to you.

* Once again we do not recommend any one of them to you as we are only providing you with information only.

3) Paid to Take In Advertisements

With a similar argument to the above scheme, there are companies giving you money to add an advertisement to your email or your website to obtain greater exposure.

4) Affiliate Programmes

An affiliate scheme is best described as focussed, commission based advertising. Unlike the old days, when you’d have advertising banners all over your website promoting things your users weren’t interested in, affiliate marketing schemes bring your users the kind of products and services they want. If your website is about cars, you might sign up with a motoring affiliate scheme which sells spare parts, used cars, or speedway merchandise. If your website is about football, then perhaps sports gear, or betting affiliate programmes are more your style.

These programmes cost you nothing to join, they take little work to sign up to and the cheques start arriving as soon as your users begin to buy - if they buy! And some don't even need you to have a website!

Our Last Words...

We hope the above options have given you some ideas where funds could be obtained. Contact us for further discussion if you like. We would be most happy to suggest. But once again, since we are not related to any of these funding agents or programmes, please understand that our comments and suggestions are not recommendations of particular organisations or type of funds ; and all decisions are your responsibility! Good luck and best wishes!