EDB appoints East Ventures and other six fund management companies as Global Investor Programme

The Economic Development Board (EDB) of Singapore has appointed seven fund management companies as Global Investor Programme (GIP)-select funds.

The funds are B Capital Group Singapore, East Ventures Advisory, GGV Capital, HHLR Management, Insignia Ventures Partners, Jungle Ventures and Vertex Venture Management.

The seven fund managers offering GIP-select funds were appointed following a Call for Proposal (CFP) exercise conducted from 2-31 March 2023.

The introduction of new GIP-select funds was part of broader changes made to the programme in March 2023.

EDB says the fund managers were chosen as they met criteria listed in the CFP, including possessing Assets Under Management (AUM) of at least US$1 billion. They also passed EDB’s holistic assessment and evaluation of their track record, investment mandate and strategy in Singapore, as well as the sectoral focus of their funds.

Investment into a GIP-select fund is one of three investment options for investors with strong entrepreneurial and managerial experience seeking permanent residency through the GIP.

Under this option, known as GIP Option B, applicants are required to invest US$25 million in a GIP-select fund. The investment quantum is a tenfold increase from the required amount of US$2.5 million under the previous GIP fund investment criteria.

Through these GIP-select funds, GIP applicants can deploy more investments in the local ecosystem, generating greater positive spin-offs for Singapore companies and the economy, and creating more “good jobs” for Singaporeans, according to EDB

The GIP-select funds will invest at least 50% of GIP monies received or US$50 million of GIP monies received from GIP Option B investors, into Singapore-based companies that are in sectors promoted by EDB and other economic agencies.

Generating positive spin-offs for Singapore

According to EDB, the appointed fund managers bring “extensive market networks and domain knowledge” to help founders and innovative companies in Singapore accelerate their go-to-market strategies, connect with potential customers, and find talent in the region and globally.

This is expected to catalyze early- and growth-stage investments across various sectors in Singapore, especially in the present environment where investors are more cautious.

“Over time, these investments could facilitate the growth of the next crop of new ventures based in Singapore that can scale to become globally-leading businesses,” says EDB.

Between 2011 and 2022, GIP investors created 24,699 jobs across a range of roles such as software engineers, researchers, and corporate functions.

The fund managers have been appointed for an initial period of three years, during which they are required to submit quarterly reports of their investment activities to EDB.

The status of all fund managers will be renewed after the three-year period, subject to a review of their local investments. EDB retains the discretion to call for proposals for new GIP-select funds every year.

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The original article was published on The Edge Singapore, 1 June 2023.