DBS launches venture debt programme to fund local tech start-ups

To cement Singapore’s status as a start-up hub.

Local start-ups now have a new ally in their quest for funding. DBS today launched a venture debt programme which will provide financing for tech start-ups in Singapore.

At present, start-ups primarily rely on venture capital to fund their operations. Tech start-ups can use DBS venture debt for working capital, fixed assets acquisition and even project financing with little or no dilution to their equity.

“Tech start-ups can use venture debt to complement venture capital, and buy more time and flexibility for their businesses to hit key development milestones, which can potentially increase their company valuations. We hope this will be a boost to the start-up eco-system in Singapore and help innovative tech companies scale up and reach profitability at a faster pace,” said Lim Chu Chong, Head of SME Banking at DBS.

To qualify, tech start-ups must be strongly backed by DBS’ partner venture capitalists such as Vertex Venture, Monk’s Hill Ventures and Golden Gate Ventures.

They should have raised at least $1 million of Series A funding, be incorporated for at least two years, be in operation for at least one year and have demonstrated that their business model is commercially viable.