Choose the funding route by stage: Startup SG Founder for an eligible first-time founder, Startup SG Tech for proprietary technology at PoC or PoV stage, EIS for qualifying R&D expenditure, and EDG for an established company commercialising or scaling an AI product.
Quick answer: use Startup SG Founder if you are a first-time founder validating the idea, Startup SG Tech when proprietary AI needs PoC or PoV funding, EDG when a working AI product needs commercialization support, and EIS when qualifying R&D spend should reduce tax.
Best-Fit Grants for Deep Tech AI Startups
Start Here (Quick Pick)
- You need PoC/PoV funding for proprietary AI technology → Startup SG Tech (up to S$800K, milestone-based)
- You’re doing genuine AI R&D with technical uncertainty → EIS (400% tax deduction)
- You’re building AI products for market → EDG (up to 70% funding, no cap)
- You want talent + project support for AI PoC → AI Singapore 100E (3-month engagement)
- You’re a first-time founder with AI startup idea → Startup SG Founder (up to S$50K, requires AMP)
Eligibility & Timing Rules
- Apply before you start. For Startup SG Tech and EDG, project work before approval disqualifies your application.
- Proprietary technology required. Startup SG Tech requires IP ownership or clear path to IP protection.
- 30% local shareholding. Singapore-registered with at least 30% local equity for most schemes.
- Milestone-based disbursement. Startup SG Tech releases funds against verified technical milestones.
Quick Decision Matrix
| Startup SG Tech | EIS | EDG | AI Singapore 100E | |
|---|---|---|---|---|
| Early-stage AI PoC validation | ✓ | ✓ | — | ✓ |
| Custom LLM/foundation model development | ✓ | ✓ | ✓ | — |
| Computer vision / NLP research | ✓ | ✓ | ✓ | ✓ |
| AI product commercialization | — | — | ✓ | — |
| Robotics / autonomous systems R&D | ✓ | ✓ | ✓ | — |
| AI training / fine-tuning proprietary models | ✓ | ✓ | ✓ | ✓ |
| Need talent support (AI engineers) | — | — | — | ✓ |
| Loss-making / pre-revenue company | ✓ | ✓* | ✓ | ✓ |
Legend: ✓ = Good fit | — = Not applicable | ✓* = EIS offers 20% cash payout option for loss-making companies
Grant Comparison Table
| Startup SG Tech | EIS | EDG | AI Singapore 100E | |
|---|---|---|---|---|
| Type | Cash grant | Tax incentive | Cash grant | Co-funded project |
| Support amount | Up to S$800K | 400% deduction | Up to 70% | AIAP team + co-invest |
| Cap | Milestone-based | S$400K/category | No fixed cap | S$75K cash + S$126K in-kind |
| Processing time | 8-12 weeks | At tax filing | 8-12 weeks | 3-month project |
| Pre-approval needed | Yes | No | Yes | Yes |
| Best for | PoC/PoV stage | Ongoing R&D | Product development | AI PoC with talent |
Startup SG Tech: PoC/PoV Funding for AI Startups
Use Startup SG Tech when: you’re developing proprietary AI technology that requires proof-of-concept or proof-of-value validation before commercialization.
Good Fit Examples
- Developing a novel NLP model for Southeast Asian languages
- Building computer vision systems for industrial inspection
- Creating AI algorithms for autonomous navigation
- Training domain-specific LLMs on proprietary datasets
- Developing AI-powered medical diagnostic tools
Funding Structure
Startup SG Tech provides milestone-based funding for two stages:
Proof-of-Concept (PoC): Demonstrating technical feasibility
- Technology development and prototyping
- Algorithm research and validation
- Initial model training and testing
Proof-of-Value (PoV): Demonstrating commercial viability
- Market testing and pilot implementations
- Customer trials and validation
- Commercialization preparation
How Much
- Up to S$800,000 total funding
- Disbursed against verified milestones
- Funding amount varies based on technology complexity and project scope
Key Requirements
- Singapore-registered startup with at least 30% local shareholding
- Proprietary technology with clear IP ownership or protection strategy
- Technology must have commercial potential
- Early-stage development (not yet commercially deployed)
How (Fast Path)
- Prepare IP documentation (patents, trade secrets, licensing agreements)
- Develop clear technical milestones with success criteria
- Submit application via Enterprise Singapore with technology narrative
- Pass technical evaluation and due diligence
- Receive Letter of Offer (LOO) with milestone schedule
- Begin project work only after approval
Where
- See more: Startup SG Tech
EIS: R&D Tax Benefits for AI Development
Use EIS when: you’re doing genuine AI R&D with technical uncertainty and want to reduce tax burden on R&D expenditure.
Budget 2026 Update: A separate AI expenditures activity (S$50K cap, 400% deduction, YA 2027–2028) now sits alongside the existing R&D category. The AI activity has no cash payout option. See EIS Budget 2026 AI Changes for details.
What Qualifies as AI R&D?
Your AI work must involve technical uncertainty to qualify:
- Are you solving a problem where the technical solution is unknown?
- Are you developing novel algorithms or adapting existing ones in new ways?
- Is there genuine experimentation involved?
Qualifies: Developing a custom transformer architecture for low-resource language processing.
Does NOT qualify: Implementing an off-the-shelf chatbot API with standard configuration.
Good Fit Examples
- Developing novel AI/ML algorithms with unknown optimal approaches
- Training foundation models on proprietary datasets
- Algorithm research and experimentation for specific domains
- AI model optimization and architecture research
- Federated learning implementations with technical challenges
How Much
| R&D Expense Level | Tax Deduction (400%) | Tax Savings (17% rate) |
|---|---|---|
| S$100,000 | S$400,000 | S$68,000 |
| S$250,000 | S$1,000,000 | S$170,000 |
| S$400,000 (cap) | S$1,600,000 | S$272,000 |
Loss-making companies: Elect cash payout of 20% on up to S$100K R&D expenses = S$20,000 cash.
How to Claim EIS for AI R&D
- Document R&D activities: Keep technical logs, experiment records, and evidence of uncertainty
- Track staff time: Record hours spent on qualifying AI R&D activities
- Retain all invoices: Keep receipts for compute costs, datasets, tools, and services
- Claim at tax filing: Include EIS claim in Form C-S or Form C (no pre-approval needed)
- File by deadline: Submit by 30 November of the relevant Year of Assessment
Where
- See more: Enterprise Innovation Scheme (EIS)
EDG: Product Development Funding for AI
Use EDG when: you’re developing AI products for market and need funding for consultancy, software, equipment, or manpower.
Good Fit Examples
- Building AI SaaS platform for enterprise customers
- Developing AI-powered hardware products (robotics, edge devices)
- Creating AI solutions for specific industry verticals
- Scaling AI products from prototype to production
- Integrating AI capabilities into existing product lines
Eligible Costs
EDG covers three types of costs for AI product development:
- Third-party consultancy fees: AI consultants, system integrators, domain experts
- Software and equipment: AI platforms, compute infrastructure, specialized hardware
- Internal manpower cost: Staff time dedicated to the AI development project
How Much
- Up to 70% support for SMEs (50% standard rate, enhanced rates available)
- No fixed funding cap (based on project scope)
- Processing time: 8-12 weeks
Key Requirements
| Requirement | Details |
|---|---|
| Singapore registration | Business registered and operating in Singapore |
| Local ownership | At least 30% local equity |
| Financial readiness | Able to fund the non-supported portion |
| Project start | Must NOT start before approval |
How (Fast Path)
- Define your AI product development project with clear milestones
- Get vendor quotes for all compute, software, consultancy, and equipment
- Prepare project plan showing product roadmap and commercialization strategy
- Submit via BGP (Business Grants Portal) with business case
- Wait for approval (8-12 weeks typical)
- Begin project work only after receiving LOO
Where
- See more: Enterprise Development Grant (EDG)
AI Singapore Programmes: Talent + Project Co-Funding
Use AI Singapore programmes when: you want AI talent support alongside project funding for proof-of-concept development.
100 Experiments (100E) Programme
AI Singapore’s 100E programme matches your AI project with AIAP (AI Apprenticeship Programme) teams to build working AI solutions.
What you get:
- Full-time AI engineering team (1 mentor + 4-6 apprentices)
- Professional project management
- Support from senior AI engineers and MLOps experts
- 3-month intensive PoC development
Your co-investment:
- S$75,000 cash (project sponsor contribution)
- S$126,000 in-kind (staff time, data access, compute resources)
Good Fit Examples
- Computer vision for quality inspection in manufacturing
- NLP models for customer service automation
- Predictive analytics for operations optimization
- AI-powered document processing systems
How 100E Works
- Apply to AI Singapore with your AI use case and business problem
- Selection: AI Singapore evaluates project feasibility and business impact
- Team formation: AIAP team assigned to your project
- 3-month engagement: Intensive PoC development at AI Singapore office
- Handover: Working MVP with documentation for your team
AIAP: Talent Pipeline
If you’re hiring AI engineers, AIAP graduates offer:
- 9 months of intensive AI training
- Real-world project experience from 100E projects
- Skills in machine learning, MLOps, and production AI systems
Where
Common AI Deep Tech Scenarios
Scenario 1: Pre-Seed AI Startup with Novel Algorithm
Situation: You’ve developed a novel AI algorithm and need funding to validate technical feasibility.
Best fit: Startup SG Tech (PoC funding)
Why:
- Designed for early-stage technology validation
- Milestone-based funding matches R&D uncertainty
- No revenue or traction required
- Up to S$800K for comprehensive PoC/PoV validation
Scenario 2: AI Startup with Working Prototype, Need to Productionize
Situation: Your AI model works in lab conditions. You need funding to build production-grade product.
Best fit: EDG (product development)
Why:
- Covers consultancy, compute, and manpower costs
- No fixed cap—supports larger product builds
- Supports custom AI product development
- 70% support rate for SMEs
Scenario 3: Profitable Company Investing in AI R&D
Situation: Your company has revenue and wants to invest in AI R&D for new capabilities.
Best fit: EIS (tax benefits)
Why:
- 400% deduction significantly reduces tax burden
- No pre-approval needed—claim at tax filing
- Covers compute costs, staff time, and tools
- Can combine with EDG (different expenses)
Scenario 4: AI Startup Needing Talent for PoC
Situation: You have an AI use case but lack engineering talent to build the PoC.
Best fit: AI Singapore 100E
Why:
- Provides full AI engineering team
- 3-month intensive engagement
- S$75K cash co-investment (lower than hiring full team)
- Access to AI Singapore expertise and infrastructure
Scenario 5: First-Time AI Founder with Early Idea
Situation: You’re a first-time founder with an AI startup idea, company not yet incorporated or < 6 months old.
Best fit: Startup SG Founder (not covered in detail here)
Why:
- Up to S$50K with 1:1 matching
- Requires Accredited Mentor Partner (AMP)
- Good for early validation before Startup SG Tech
- See: Startup SG Founder vs Tech Decision Matrix
Deep Tech AI Pitfalls to Avoid
Pitfall 1: Starting Work Before Approval
The mistake: Beginning AI development before Startup SG Tech or EDG approval.
The problem: Applications are rejected if project work (code commits, model training, contracts) starts before Letter of Offer.
How to avoid:
- Apply first, start later
- Document project start date clearly
- Do not commit code to production repository before approval
Pitfall 2: Weak IP Protection Strategy
The mistake: Applying for Startup SG Tech without clear IP ownership or protection plan.
The problem: Startup SG Tech specifically requires proprietary technology with IP protection strategy.
How to avoid:
- Document your IP position (patents filed, trade secrets, proprietary datasets)
- Have clear plan for protecting algorithms and models
- If using open-source foundations, clarify your proprietary contributions
Pitfall 3: Confusing AI Implementation with R&D
The mistake: Claiming EIS tax benefits for standard AI tool deployment.
The problem: IRAS may reject or claw back deductions. R&D requires genuine technical uncertainty.
How to avoid:
- Ask: “Is the technical approach unknown or uncertain?”
- Deploying ChatGPT API ≠ R&D
- Training custom models with novel architecture = R&D
- Document what makes your work genuinely uncertain
Pitfall 4: Unrealistic Milestones for Startup SG Tech
The mistake: Setting vague or unverifiable milestones.
The problem: Funding is milestone-based. Vague milestones (“improve model accuracy”) cause disbursement delays.
How to avoid:
- Set specific, measurable milestones: “Achieve 90% accuracy on benchmark dataset X”
- Include clear technical deliverables
- Align milestones with project phases (PoC → PoV → commercialization)
Pitfall 5: Double-Claiming Expenses
The mistake: Claiming the same AI expense under multiple schemes.
The problem: You cannot claim the same dollar twice.
How to avoid:
- Track which expenses are covered by which scheme
- If EDG covers 50% of compute costs, EIS can only apply to remaining 50%
- Declare all other grant support when applying
Related Guides
Startup Guides
- Startup SG Founder vs Tech Decision Matrix — Compare Founder (S$50K) vs Tech (S$800K)
- Startup SG Founder Quick Start — First-time founder guide
- Startup vs SME Eligibility Matrix — Which grants fit your stage
AI and Innovation Guides
- AI Grants for SMEs — EIS, EDG, ADS for AI adoption (not deep tech R&D)
- EIS Claim Checklist — Documents and deadlines for R&D tax deductions
- EIS vs DTD Decision Matrix — Compare innovation incentives
- EIS Budget 2026 AI Changes — New AI qualifying activity under EIS
- Budget 2026 AI & Innovation Grants Overview — All Budget 2026 AI changes
Application Guides
- EDG Quick-Start Checklist — Step-by-step EDG preparation
- First-Time Grant Application Checklist — Complete preparation
- Grant Pitfalls Guide — Common mistakes to avoid
- Singapore Grants Glossary — Key terms and definitions
- Corppass Setup Guide — How to set up BGP access
- Startup SG Accelerator — Funding for AI-focused incubators and accelerators
Glossary (Quick Definitions)
- PoC (Proof-of-Concept): Early-stage validation demonstrating technical feasibility
- PoV (Proof-of-Value): Market validation demonstrating commercial viability
- AIAP: AI Apprenticeship Programme by AI Singapore (9-month training)
- 100E: AI Singapore’s 100 Experiments programme for industry AI projects
- BGP: Business Grants Portal (where applications/claims are submitted)
- LOO: Letter of Offer (formal grant approval document)
- IP: Intellectual Property (patents, trade secrets, proprietary technology)
Official Links
- Startup SG Tech: Enterprise Singapore — Startup SG Tech details
- EIS: IRAS Official Guide — Enterprise Innovation Scheme
- EDG: Enterprise Singapore — Enterprise Development Grant
- AI Singapore 100E — 100 Experiments programme
- AI Apprenticeship Programme — AIAP information
- Business Grants Portal — Apply for EDG and other grants
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