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National University of Singapore's NUS VC Program

In an unprecedented move for Asia, the National University of Singapore (NUS), through its entrepreneurial support arm NUS Enterprise, has announced the launch of the NUS VC Program. This initiative aims to provide substantial support to tech startups in the region, particularly at a time when venture capital (VC) investments are witnessing a significant decline.

A Shift in the Investment Landscape

The past decade has recorded the lowest levels of VC investments in Asia, culminating in a mere SGD 85 billion (approximately USD 66 billion) in funding. This downward trend has made it increasingly challenging for startups to secure necessary financing. For instance, in Japan, investments in startups have dropped by 26% from a peak of JPY 873.6 billion in 2022 to around JPY 644 billion in 2023. The deep tech sector, in particular, is facing heightened difficulties in fundraising, necessitating a reevaluation of valuations and extended fundraising periods.

In response to this challenging environment, NUS has stepped up to directly address the acute lack of funding and mentoring that tech startups encounter, thereby launching the NUS VC Program.

Objectives of the NUS VC Program

The NUS VC Program is designed to bolster support for promising ventures affiliated with NUS, especially startups that have emerged from the National Graduate Research Innovation Programme (National GRIP). This initiative empowers researchers to transform their laboratory findings into global ventures, particularly focusing on early-stage tech innovations.

The overarching goal is to provide systematic and practical support to deep tech startups through significant financial backing and expert guidance, ultimately helping these entities navigate the complexities of the business landscape.

Key Features of the NUS VC Program

The program is grounded in both financial support and specialized expertise, primarily focusing on two key initiatives:

1. Investment in Early-Stage Deep Tech: Over the next three years, NUS Enterprise will allocate SGD 50 million (approximately USD 39 million) to venture capital firms excelling in early-stage deep tech investments. These firms will offer actionable support to startups, including hands-on assistance, specialized knowledge, and access to valuable networks.
Timely partnerships have already been formed with esteemed VC firms like Granite Asia—known for its extensive experience in supporting tech startups worldwide—and 4BIO Capital, specializing in advanced therapies.

2. Co-Investment Opportunities: NUS Enterprise aims to secure SGD 100 million (approximately USD 78 million) for co-investment opportunities in collaboration with these VC partners, specifically targeting deep tech startups associated with NUS.

The transition from research laboratories to the marketplace necessitates sustained and strategic support. The NUS VC Program enhances the objectives of the National GRIP, which currently provides seed funding of up to SGD 250,000 (USD 194,000) per entity. The VC Program's focus will be on accelerating growth and supporting fundraising efforts.

Industry and Academic Insight

NUS Enterprise offers an intricate support framework through the NUS VC Program, incorporating mentoring, investor feedback, market entry assistance, fundraising networks, and operational guidance. According to Jenny Lee and Jixun Foo from Granite Asia, "NUS is establishing Asia's most ambitious deep tech pipeline and serving as a beacon for transformative, globally significant ideas. This partnership will exemplify how deep tech can be commercialized and scaled."

Conversely, Dr. Dima Kuzmin from 4BIO Capital expressed enthusiasm about the program, emphasizing its potential to bolster early-stage tech innovation in Asia: "This collaborative effort in investment and expert support will undoubtedly accelerate the growth of promising startups and strengthen the region's innovation ecosystem."

NUS President Professor Tan Eng Chye highlighted the pressing need for this initiative, noting the unique challenges research-based startups face amid a contracting investment climate. The NUS VC Program aims to forge a sustainable and robust pathway for transitioning innovations from labs to markets.

Conclusion

The launch of the NUS VC Program signifies a critical response to the mounting challenges in the venture capital landscape. By leveraging partnerships with top-tier VCs, the program aspires to elevate the support system available for deep tech startups, fostering an environment where these enterprises can thrive and contribute meaningfully to both local and global markets. For more information about NUS and its entrepreneurial endeavors, you can visit their official website at NUS and follow them on LinkedIn.