Singapore's Variable Capital Companies (VCC) framework has quickly gained traction among businesses and investors, primarily due to the attractive grants and funding schemes available. These financial incentives, led by the Monetary Authority of Singapore (MAS) and other government bodies, are designed to lower the barriers for adoption, provide operational support, and attract high-net-worth investors. By leveraging the variable capital companies grant scheme, businesses in various sectors—from venture capital to R&D—can maximise funding opportunities and thrive within Singapore’s robust financial ecosystem.
VCC Grant Schem
The Monetary Authority of Singapore (MAS) introduced the Variable Capital Companies Grant Scheme to support the adoption of the VCC structure. Under this scheme, eligible VCCs can secure up to 30% of costs incurred, covering crucial expenses such as legal, tax, and administrative fees. This co-funding initiative aims to alleviate the costs associated with establishing and managing VCCs, thereby encouraging more firms to utilise the VCC structure for their investment funds.
The grant, capped at SGD 30,000, enables businesses to manage setup costs more effectively, particularly for fund managers looking to establish a robust presence in Singapore. Through this grant, the MAS ensures that Singapore remains a premier destination for fund management and investment services.
Startup SG Equity
For VCCs focused on venture capital investment, the Startup SG Equity scheme presents a compelling funding opportunity. Managed by Enterprise Singapore, this scheme co-invests with VCCs in innovative startups, especially those within high-growth, emerging industries like deep tech and digital health. Through Startup SG Equity, the Singapore government matches investments made by VCCs in qualified startups, helping reduce financial risk and promoting sustainable growth.
This co-investment framework serves as a valuable resource for VCCs interested in contributing to Singapore’s entrepreneurial ecosystem. Additionally, by aligning with Startup SG Equity, VCCs can gain access to strategic partnerships, expertise, and resources that reinforce their investment portfolio's success.
Global Investor Programme (GIP)
The Global Investor Programme (GIP) targets high-net-worth individuals (HNWIs) seeking to establish family offices or investment funds in Singapore. Through the GIP, VCCs gain access to capital and resources provided by wealthy individuals looking to invest in Singapore’s financial market. This programme supports VCCs by offering funding opportunities alongside long-term residency benefits for HNWIs who are willing to invest in Singapore.
Not only does GIP strengthen Singapore’s position as a hub for private wealth management, it also provides VCCs with a pool of well-resourced investors eager to make long-term contributions to their fund portfolios.
The Variable Capital Companies Grant Scheme and other available funding opportunities give VCCs in Singapore significant advantages in managing setup costs, investment risk, and operational expenses. Through these schemes, Singapore has crafted an environment conducive to growth for VCCs across multiple industries, fostering innovation, driving investment in emerging sectors, and enhancing the country’s standing as a global financial hub.
So, if you would like to know more and stay ahead in this evolving space, consider joining VCC Hub—your resource centre dedicated to fund managers navigating Singapore’s VCC landscape. By registering as a member, you'll gain exclusive access to a rich collection of resources, including detailed articles, video guides, and timely regulatory updates on Singapore's VCC framework.