EDB to back corporate ventures with strategy, networking, capital

Singapore

LARGE corporates looking to start new enterprises can get strategic advice, networking help and even risk-sharing investment from the New Ventures arm of the Singapore Economic Development Board (EDB).

EDB assistant managing director Beh Kian Teik, who oversees this arm, said: "We want to make Singapore a place where large corporates come to create new ventures."

He told The Business Times that the board has noted a macro trend of firms becoming interested in corporate venturing.

For instance, a firm might have existing technology for which it sees an application elsewhere. This was the case with medical device company Accuron MedTech, which worked with EDB New Ventures to find new uses for its shock-wave treatment for kidney stones.

Another corporate that has tapped the EDB team is Singapore Airlines, which has a digital innovation lab called KrisLab, where its employees can work with external partners on new ideas.

The aid that EDB New Ventures can provide encompasses strategy, networks and capital. For example, its team dedicated to helping firms develop a strategy can help companies "talk through the growth plan" and tap the wider EDB team for specific market insights if needed.

In networking, the EDB can link firms up to Singapore's innovation ecosystem, including entrepreneurs, venture builders, innovation consultancies, research institutes or other providers of capital; it can also put firms in touch with large corporates who are potential customers for the new ventures.

And the EDB itself can be a source of capital, providing "risk-sharing incentives" for firms. If a company's new venture is successful, the EDB will receive returns on its investment, said Mr Beh. "If it fails, we forgive the investments."

Although large corporates may not necessarily need the funds, they would appreciate that the EDB is willing to take a stake, he added.

The New Ventures team's work does not end once a project is underway. After a project with the EDB, corporates may be asked if they wish to go further and maintain a portfolio of corporate ventures, said Mr Beh.

READ MORE: EDB sees S$8b to S$10b in fixed asset investments for 2019