US-based startup accelerator Founder Institute entered the Singapore market in July 2010 and has graduated over 50 companies since then. The institute provides a four-month program, which involves weekly company-building assignments. The program was launched in Singapore through a partnership with local startup incubator Battle Ventures. Applications for the Founder Institute Singapore Class of Spring 2012 will be open soon. StartupCentral spoke to Jeffrey Paine, executive director of Battle Ventures and director at Founder Institute Singapore (and co-founder of employee perks platform Pyrks), about the institute’s plans for further expansion in Asia. Edited excerpts:
Ascendas iAxil is also a Founder Institute partner in Singapore. How is Battle Ventures’ role different from theirs?
We (Battle Ventures) started Founder Institute in Singapore, and oversee its expansion in parts of Asia including Jakarta, Hanoi, Hong Kong and soon, India and China. Ascendas iAxil is an incubation partner that helps our graduate companies with acceleration in the enterprise sector.
How many founders do you expect to mentor in the upcoming four-month programe?
We expect between 30 and 35 founders to be enrolled in the Spring 2012 semester.
Are you seeking a particular mix of companies in terms of sectors, tailored to Singapore’s needs?
No, we are open to most technology sectors except, drug development and biotech. We look for ideas that are global and/or regional in nature.
Battle Ventures is also overseeing the expansion of the program to other Asian markets. Can you share some details?
In 2012, we will start chapters in Sydney, Australia and Hong Kong. We are also in later stage discussions for chapters in Beijing, China and India.
What are the five unique challenges of building a startup in Singapore?
- The Singapore domestic market is small.
- Regional market expansion is not homogenous, with significant cultural and language barriers.
- Limited availability of risk capital in Singapore. It is limited between S$500,000 and S$3 million.
- Technical talent is tough to acquire but the situation is getting better.
- The overall ecosystem to create a truly global business is still lacking but in recent years, this has improved a lot with experienced entrepreneurs and investors coming to Singapore to share or network.
Battle Ventures itself is an incubator for startups. How are you funded, how many company have you incubated and how much equity stake do you typically acquire?
We are funded by individual investors and have made four investments in the region. We pick up between 2 per cent and 30 per cent equity stakes depending on the nature of the deal.
We are looking to do another four or five deals in 2012/2013, and hopefully generate a few exits soon. We remain invested as long as we are still aligned with the direction of the founding team.
What is Pyrks all about? What’s the status there?
Pyrks is an employee perks platform that lets you reward your employees with Google-style perks at Costco prices. We pool businesses together to form a powerful network and secure deep corporate savings typically reserved for large companies. We are still in private beta with quite a number of companies signed up for trials.
Image Courtesy: Battle Ventures
Image Description: Paine (front row, first from left) with the graduates from the Fall 2011 Singapore Class
