i.JAM Micro-funding initiative

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The i.JAM Micro Funding Scheme is a seed financing program in Singapore.
What are the main aims and objectives?

i.JAM aims to foster innovation and entrepreneurship in the interactive digital media (IDM) sector. Its primary objective is to create a self-sustaining capacity for continuous grassroots innovation in the IDM industry. The program supports startups in exploring the technical merit and feasibility of technologies and ideas that have the potential to disrupt businesses and build new industry sub-sectors. The initiative also seeks to marshal support from industry players, business mentors, and technology suppliers to provide bottom-up assistance to these emerging ventures. 

How does the program work?

The initiative operates through a network of appointed incubators who play a crucial role in identifying, developing, and disbursing funds to qualified startups. These incubators also advise startups on the uniqueness of their concepts and plans, provide networking opportunities, and offer guidance on securing additional funding.

The i.JAM Micro-funding scheme offers up to $250,000 in seed funding, structured in two tiers. Tier 1 funding provides grants of up to $50,000 to selected startups, which can offset up to 100% of startup costs over a maximum period of two years. For every $50,000 grant provided by the scheme, the incubator typically invests an additional $10,000, usually in exchange for about 8% equity in the startup.

Tier 2 funding, also known as i.JAM Reload, is available for startups that have successfully completed and exceeded performance indicators in their Tier 1 projects. This second tier offers funding of up to $100,000 for eligible startups. The Interactive Digital Media Programme Office oversees this phase of funding.

What is the overall cost?

There is no information about the overall cost of i.JAM.

How was it implemented?

The i.JAM Micro-funding initiative was created as part of Singapore's efforts to foster innovation and entrepreneurship in the interactive digital media (IDM) sector. It was established and administered by the Interactive Digital Media Programme Office (IDMPO), which is part of the Media Development Authority (MDA) of Singapore. The Interactive Digital Media Jumpstart and Mentor Programme was set up by the Interactive & Digital Media Programme Office and funded by the Singapore National Research Foundation.

What impact has been measured?

As of 2015: Since its launch in 2007, more than 300 startups have been funded by the first tier of the programme and more than 50 have been funded through the second tier.

Notes + Additional Context

About grants (excerpt from Nesta's ‘Idea Bank’ for Local Policymakers):

Since they do not require payment of interest or equity, grants are the ‘cheapest’ form of financing from the entrepreneur’s perspective. As such, they are understandably popular with early-stage startups – despite often involving stiff competition, time-consuming applications and restrictions on the use of funds. Grants are often used to encourage growth in sectors which satisfy a greater societal need, and so may be targeted at entrepreneurs belonging to a specific demographic or to businesses with a specific purpose. Although winning a grant may give confidence to investors and banks, thus making it easier for the business to raise further finance elsewhere, reliance on public grants may be a warning signal to private investors that insufficient consideration has been given to the ultimate commercial viability of the venture. From a policy perspective, therefore, the risk of encouraging reliance on public money is often countered by requiring grants to be matched by private money.

CURATED BY

Chris Haley

Head of Research
United Kingdom