Over 40 corporate ventures launched in Singapore since 2018: EDB

IN 2017, a group of Bosch employees had an idea to transform the aquaculture industry by using Internet of Things (IoT) solutions to make farmers more productive and profitable.

Four years later, with support from Bosch and the Economic Development Board (EDB), the idea turned into reality with AquaEasy, a startup specialising in aqua farming services and solutions.

The company, which launched in 2021, is the first spin-off from the German conglomerate's internal incubator startup programme known as Grow, and was set up in partnership with EDB's corporate venture building arm, EDB New Ventures.

EDB New Ventures had in May 2021 launched a S$10 million pilot programme to co-invest with large companies here in hopes of spurring new growth areas for the businesses.

The pilot programme - called the Corporate Venture Launchpad - will run for a year. EDB said during its year-in-review briefing on Wednesday (Jan 26) that it will be examining the success and sustainability of the programme as it progresses, and will provide updates in the future.

To date, more than 40 corporate ventures have successfully launched in Singapore, a majority of which were established since 2018, said EDB. (see amendment note)

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In an interview with The Business Times, Somesh Kumar, AquaEasy's head of product, said the Grow programme provided the company with a solid innovation framework to follow, and this allowed them to scale up fast and reach critical mass in its core markets of Indonesia, Vietnam and Singapore.

"Bosch also supported us with go-to-market support, business development and strategy, technology, networks and partnerships which are critical for a startup," he said.

For example, he pointed out that the opportunity to sit down with EDB and discuss ideas was something that would have been challenging to achieve had it not been for Bosch's backing.

"That is huge for any startup. Even to get to this stage is very, very hard," he said.

"(Bosch's support) has certainly allowed us to reach where we are within 3 years, which I see that other startups would probably take 8 to even 10 years (to achieve)."

Looking ahead, Kumar said it has its sights on becoming a major player in the aquaculture sector in South-east Asia in the next 3 to 5 years, by helping farmers adopt technology and accelerating the development of sustainable aquaculture practices.

And with more established players in the market now, the company believes there is now a strong ecosystem which will help attract more partners and funding to the sector.

"Ultimately it helps the sector to push the boundaries to feed an ever growing world population while still preserving our natural resources for our future generations," said Kumar.

Another corporate venture born from EDB's corporate venturing initiatives is Dole Specialty Ingredients (DSI), a spin-off from fruit company Dole Sunshine Company. DSI is focused on transforming fruit waste into high-value natural products.

EDB and Dole are co-investors in DSI, and supported the new entity by deploying a venture-building team for 2 months to help develop the venture's product portfolio and go-to-market strategy.

With their help, DSI raised S$10 million in its early funding round. Managing director Wei Tze Ooi said there are no plans for further investments at the moment as the company expects to support its operations with its revenue soon.

Wei said the motivation to partner with EDB was partly to gain access to the local innovation ecosystem, including research institutions, highly specialised and skilled talent from various universities, and startup networks.

"Singapore as a leading tech innovation hub makes the perfect jumping board for DSI to demonstrate that a circular economy can create a strong business model that all stakeholders can benefit from," he added.

And with Dole's global headquarters in Singapore, DSI could tap existing functions such as finance, supply chain and marketing, which were already set up.

DSI expects to fully utilise 1 million tonnes of fruit side streams produced at Dole's plantations in the Philippines by 2030 to create products such as enzymes, fruit extracts, seed oil and dietary fibre, among others.

These products can be used in industries such as pharmaceuticals, nutraceuticals, cosmeceuticals, and the food and beverage sector.

Wei said the plan is for DSI to replicate its business model in other Dole markets, such as Thailand, Singapore and Africa, once it has been tried and tested to be effective in the Philippines.

In Singapore, it is also exploring the possibility of collaborating with retailers and distributors to collect food waste and upcycle them into valuable ingredients.

Amendment note: A previous version of this article incorrectly stated that 40 new ventures have been launched so far through EDB’s corporate venturing initiatives, when not all of the new ventures were created with EDB’s support. The story has been updated to reflect this.