nexworld update 12th, nov 2024
countries with federal start-up business for immigrant
A federal startup business is a business that receives support from the federal government, such as loans, grants, or other programs. Startups are often founded by entrepreneurs and can be sole proprietorships, partnerships, or corporations. They are characterized by high costs and limited revenue, and typically require several years to make a profit. Startups are often focused on growing quickly and smoothly, and may rely on technology to do so.
Startups often need to secure capital from outside investors, such as family and friends, venture capitalists, or crowdfunding platforms. funding a start up business is usually co owned, and such business is agreed upon by both parties, where the profit is shared accordingly, in which the initiator who inspires the business has a higher share.
The United States of America
The United States of America (the USA) is known to many for being the leaders in many different fields, ranging from having the most technologically powerful economy to the largest consumer market. Thus, is sought after by worldwide businesses but not many businesses are able to enter this lucrative market due to the complication of different regulations among different states of the USA; and the procedures to enter the US market. The US federal government offers a variety of programs and resources to help small businesses start and grow, including grants, loans, and the Small Business Administration (SBA):
Grants; The SBA offers grants to help small businesses start, build, and grow. For example, the Small Business Innovation Research Program (SBIR) funds the development of new products, services, and technologies. The National Science Foundation (NSF) also offers America's Seed Fund, which provides up to $2 million to startups and small businesses developing innovative technology.
Loans and credit lines; Businesses can explore options for loans and credit lines to help fund their startup.
Business plans; A business plan can help a business get funding, bring on new business partners, and guide the business through its stages of growth.
SBA resources; The SBA can help with a variety of resources, including estimating startup costs.
Other steps to starting a business include:
Choosing a business structure
Registering the business
Applying for licenses and permits
Getting federal and state tax IDs
Opening a business bank account
Obtaining an Employer Identification Number (EIN)
Germany
Germany is an attractive country for startups. Its large cities and metropolitan regions are some of the world’s hotspots for startups. There are also numerous smaller cities and regions with innovative startups, in particular in areas with higher education institutes and research institutions. The Federal Government is constantly working to improve the business environment for startups. In July 2022, the Federation tabled its first comprehensive Startup Strategy, which was coordinated by the Federal Ministry for Economic Affairs and Climate Action and sets out around 130 measures that include funding programmes, new advisory services and reductions of red tape.
Germany's federal government has a number of initiatives to support startups, including:
Startup Strategy; Adopted in July 2022, this strategy includes 130 measures to improve the business environment for startups. The strategy aims to make it easier for startups to access funding, public contracts, and venture capital. It also aims to reduce red tape and make it easier to set up spin-off companies.
Funding programs; Germany offers a variety of funding programs for entrepreneurs, including public loans, non-repayable grants, and equity. The Future Fund is a program that will make €10 billion available by 2030, and when combined with funds from private and public partners, the goal is to raise over €30 billion.
KOINNOvationsplatz; This digital marketplace allows young companies to present their business to the public sector. It also allows companies to participate in challenges, which are digital market surveys of public clients.
Digital Agenda 2020; This initiative has helped the eCommerce and IT sectors become more important in Germany.
Germany has a well-designed startup ecosystem and has been ranked as one of the best European countries for startups this includes;
Exist business startup grant;This funding programme is run by Germany’sFederal Ministry for Economic Affairs and Climate Action. Funding is provided for innovative technology-oriented startup projects and for services based on scientific findings. The grant covers personal living expenses for one year, materials and equipment, and coaching. Since the programme is targeted at researchers, university graduates and students, the respective higher education institution or non-university research institute submits the application. The chances of receiving funding are good: Between 2007 and 2021, more than half of the 4,906 applications submitted during this period were approved. More information about the grant can be found here.
Exist transfer of research; The Exist transfer of research programme has a rather different focus: It supports outstanding research-oriented projects that involve expensive and high-risk resource development. It comprises two funding phases: In the first phase, the entrepreneurs further develop the results of their research, while in the second they prepare the practical business operations and external funding. Funding is provided for research teams at universities or non-university research institutions for a period of up to 18 months. The chances of receiving funding here are even better: More than two thirds of the 660 applications submitted between 2007 and 2021 were accepted. More information about the programme can be found here.
High-Tech Gründerfonds; For startups with ambitious growth plans, venture capital is a key source of funding. Such investments are made by the High-Tech Gründerfonds (HTGF), which was founded in 2005. It is Germany’s largest provider of capital for companies in the early phase of development and invests in startups that are not more than three years old. It focuses on innovative high-tech startups in all sectors.
Startup grants from Germany’s federal states; Other funding opportunities when it comes to turning innovations into marketable products come in the form of the startup grants available from Germany’s federal states. According to the German Startup Monitor, North Rhine-Westphalia is home to the most startups, namely nearly 20 percent. That said, Berlin boasts the highest funding volume for startups, according to the EY Startup Barometer 2022: It reveals that half of all euros invested in the software and analytics sector are channelled into a Berlin startup. At the same time, the capital’s startups have a 94 percent share of the finance and insurance technology market.
Canada
Canada has always provided great opportunity for foreign entrepreneurs and innovators. The federal government seeks to attract qualified entrepreneurs with bold and globally competitive business ideas through the Start-Up Visa Program with the overarching goal of creating new jobs and spurring economic development in the country. Unlike the regional provincial nominee programs aimed at entrepreneurs, the federal Start-Up Visa program requires a Letter of Support from a designated organization (Find the full list here). These organizations consist of investors (venture capital and angel) as well as incubators who may be interested in supporting your idea.
Investors see countless pitches and business plans daily. They have demanding expectations and highly selective criteria for business ventures they choose to fund. It’s difficult enough to capture their attention let alone convince them to invest. It will require a strong idea showcased in a well-prepared business plan and/or pitch deck.
We help investors come to Canada quickly on work permits, start a business and obtain permanent residence. We create a customized strategic immigration and business plan that’s right for you and expertly represent you throughout the process. If you have the ability to establish a business enterprise in Canada, then this follows;
It’s Fast: Quickly come to Canada with your family and start a business.
It’s Easy: We quickly prepare the paperwork and submissions for you. WP2PR is easier and faster than other Canadian investor programs.
It’s Affordable: No minimum or upfront investment required.
It’s Flexible: No performance agreements required and you can modify your business plans when you arrive in Canada.
Note that; Entrepreneurs wishing to immigrate to Canada with a startup visa must secure a minimum investment of $200,000 from an approved organization or at least $75,000 from a designated angel investor. If your business is accepted into a business incubator program, you are not required to secure an investment.
Singapore
Singapore has become one of the most attractive countries for investors to set up a business because of its business-friendly policies and supportive ecosystem for startups. The Singaporean government has shown their support for new businesses by offering grants and funding to help startups grow during their early stages of business. In the following guide we have listed the different types of startup grants and funding.
Startup SG (Singapore grant); Startup SG is a scheme that provides funding and mentorship to businesses in Singapore. Under this scheme, there are various types of grants offered by Startup SG.
Startup SG Founder Grant; The first grant is for first-time entrepreneurs, the Startup SG Founder grant. This scheme provides new entrepreneurs with guidance and a startup capital grant of SGD 30,000 which matches SGD 3.00 to every SGD 1.00 raised by the startup. In other words, to receive the maximum grant of SGD 30,000, the startup must invest SGD 10,000. The SG Founder grant is applicable to Singapore citizens and permanent residents who are first-time entrepreneurs and applied through an Accredited Mentorship Partner (AMP).To receive the grant, first-time entrepreneurs must comply with the following conditions:
*Must hold or propose to at least 30% of the company
*Must be dedicated to the business – not be a full-time employee of another company
*Cannot already received funding from another government organisation
*The first-time entrepreneur must incorporate a private limited company in Singapore after approval.
*If the first-time entrepreneur already has a company in Singapore, it must not be more than six months old and must have at least 51% shareholding in Singapore.
Startup SG Equity; The second type of grant is the Startup SG Equity. Under this scheme, government will co-invest with qualified third-party investors into eligible startups.
For general tech startups, the government will need to invest 70% of the funding up to the first SGD 250,000 and a ratio of 1:1 up to the investment cap of SGD 2 million. For deep tech startups, the Singapore government will provide 70% up to the first SGD 500,000 and 1:1 for up to SGD 4 million. To apply for the Startup SG Equity, startups should meet the following criteria:
*Be a Singapore-based company and have core operations in Singapore
*Be incorporated as a private limited company for less than five years
*Have a paid-up capital of at least SGD 500,000
*Be able to prove substantial innovative and intellectual property for its products and/or services
*Have high-growth potential with clear scalability in the international market
*Have identified an independent third-party investor(s)
*The business must not be involved in gambling, tobacco-related product or other activities that violate the law or against public interest
*The company must not be a subsidiary or joint-venture
Startup SG Tech; The third grant is the Startup SG Tech for tech startups and provides funding for the commercialisation of innovative technologies. Startups can receive either a Proof-of-Concept (POC) grant or a Proof-of-Viability (POV) grant. The POC project tests the technical and scientific viability of new technology and will receive funding up to SGD 250,000. A POV project tests the technical/scientific viability of lab-proven technology and can receive funding up to SGD 500,000.
The SG Tech scheme offers cash grants to the following industries:
*Advanced manufacturing and robotics
*Biomedical sciences and healthcare
*Clean technology, such as waste management solutions and sustainable energy generation
*Information and communications technology
*Precision engineering
*Transportation technology
*Food science and technology
To qualify for the SG Tech grant, the company must meet the following conditions:
*Registered for less than five years and operate in Singapore
*Have at least 30% local shareholding
*The annual revenue must be less than SGD 100 million or must employ less than 200 people
Enterprise Development Grant; The next grant is called the Enterprise Development Grant (EDG). The EDG is a program by the Enterprise Singapore which helps Singapore companies grow and transform by enhancing their business foundations and strategies, improve productivity, endorse technology and expand their presence in overseas markets under three pillars: Core Capabilities, Innovation and Productivity, and Market Access.
Projects under the Core Capabilities pillar support businesses by strengthening their business foundation which include strategic brand and marketing development, business strategy development, human capital development, service excellence and financial management.
The innovation and productivity pillar support companies that want to explore new areas of growth and enhance efficiency. Areas under this pillar include product development, process redesign and automation, and the last pillar, market access encourages expanding into the overseas market and supports areas including mergers and acquisition, standards adoption and pilot project and test bedding.
The EDG provides funds of up to 70% to qualifying costs SMEs and up to 50% for non-SMEs. Qualifying costs include equipment and software, internal manpower costs and consultancy fees.To qualify for the EDG, companies need to be registered and operate in Singapore, have a minimum of 30% local shareholding and be financially capable of starting and completing the project.
Incubators in Singapore; The next type of funding is incubators. Business incubators are funding programs designed to help startups grow by providing mentorship, technical assistance, funding and legal and financial advice. Some startup incubator options in Singapore are:
Spaze Ventures
JCS Venture Lab
NUS Ventures
QuestVC
TNBVentures
The Finlab
Advanced New Technology Incubator
FocusTech Ventures
Angel investors; Another funding method is through angel investors. Angel investors are high net worth individuals or successful businesspeople who invest in early-stages businesses in exchange for ownership share in the company. These investors usually invest either as individuals or as a part of an angel network and invest in startups that have high potential in the market. Individual angel investors invest between SGD 25,000 to SGD 100,000, while group investors invest around SGD 250,000 to SGD 750,000.
Top angel investor networks in Singapore include the following:
*Business Angel Network South East Asia (BANSEA)
*Singapore Angel Network (SGAN)
*Business Angel Scheme (BAS)
Venture capital funding; The next stage of funding is through venture capital funding. Venture capital firms are investment firms that invest in late-stage startups or businesses that require a high amount of capital. They do not only provide funding but also offer advice and mentorship on operating and increasing the businesses profits. Venture capitalists usually invest in businesses that have high growth potential and profitability. Compared to the United States and Europe, the venture capital industry in Singapore is still new and small, but there are currently around 100 venture capital firms that provide funding.
Venture capital firms in Singapore include:
*500 Startups – is based in Silicon Valley and has invested in over 500 startups in Southeast Asia including Singapore.
*Ardent Capital – invests in technology companies in Southeast Asia.
*B-Capital Group – invests in transformative technology startups during the early stages and focus on B2B technology startups.
*Golden Gate Ventures – invest in internet and mobile startups, such as e-commerce, payments, marketplaces, mobile applications and SaaS platforms.
*Jungle Ventures – focuses on investments in technology, software, e-commerce and also has incubation for startups.
*Singtel Innov8 – invests in early-stage startups in Asia-Pacific in the areas of digital media, internet applications and the technology sector.
Private equity; The last type of funding is private equity (PE). PE refers to an investment made to gain ownership of a private company and usually invest in companies that are in the expansion stage, have competitive advantages in the market and are expected to have positive return on investments.
Some private equity firms are:
*3V Source One capital – is a private equity firm that invests in areas such as biotech, education, industrial, media, real estate and software.
*AIF Capital – provides funds to companies that specialize in advertising and advertising, healthcare and pharmaceuticals, financial services and power generation.
*L Capital Asia – invests in lifestyle food and beverages, lifestyle retail, beauty and wellness and boutique hospitality.
*Tael Partners – invests in sectors like natural and mining resources, shipping and logistics, real estate development and utilities and infrastructure.
*Venstar – invests in the growth and expansion stage of startups and focuses on petrochemical, energy, resources and pharmaceutical.
Conclusion; The Singapore government provides various grants and funding to support businesses throughout each stage, from early stages to the expansion stage. Feel free to contact us if you have any questions or need assistance with a company in Singapore.
