It’s interesting that we, as logical individuals, can take a lot of things for granted. The computer, the mobile phone, deodorant, toothpaste, doorknobs, and the list goes on and on.
Now ask yourself one thing.How often did you actually stop and think about how things go from the idea stage to the “on your table” stage?
I thought so… not very often. The truth is that we wouldn’t of have had all the things that we take for granted if they wouldn’t of have been researched and developed in the first place.
This is why the R&D departments are crucial for every single company out there. They basically think up all the products and conduct all the tests and come up with the ideas and concepts of new products.
But if only it would have been that simple…
The products have to be tested, prototyped, retested, re-built, re-tested, and so on until you get that product that you are looking for.That unfortunately costs a lot of money, even for corporations.
And how can a company get that kind of money?
Banks wouldn’t even dare to think about helping you, and you’d have to save up for the rest of your life to see the R&D process of your next product begin, on your deathbed.
This is why R&D funds and R&D funding was created.
It’s basically like a bank, but better, and more oriented towards the company and the product rather than the fund itself.
SIIRD is one of these funds.
It stands for Singapore Israel Industrial Research and Development Foundation, and it lends a helping hand to companies that are run by both Singapore and Israel partners.
With a wide range of projects that they are willing to fund, and up to $1 million destined for research, they seem to be one of the best choice for a company that is run by both Singapore and Israel partners with a product in mind.
That is, of course, if it meets the requirements.
That’s right, not every company can apply for funding and actually get it. A company must first meet certain requirements in order to be eligible for it.
But relax, you don’t have to give them your firstborn, you don’t have to own a number of houses on the French Riviera and you don’t have to be the best stock broker for it.
The requirements are actually modest.
First off, the application must be jointly submitted by a Singapore-registered company and an Israel-registered company.
Second, either company must not have more than 20% shareholding in the partnering company.
Third, the joint project must be undertaken in Singapore and Israel.
Fourth, at least 30% of the actual R&D work must be done in Singapore as well as in Israel.
And last, but by far the most generic one, technology and product developed must have potential for commercialization.
The last one is actually the most logical because nobody wants to actually invest money in a product that does not sell.
Ok, so you got the funding, you’ve researched and developed your product, you’ve launched it on the market, but it is now time to pay back the money.
That’s right, the money must be returned to its rightful owner.
The rules for this are simple as well.
Basically, if your products sell, then you have to pay the money back based on how it sells, up to 100%.
Bad news is that repayments are considered pre-tax expenses, so you might wind up paying the tax for it as well.
However, looking on the bright side, it is being paid at the rate of 2.5% of Gross Sales until the full amount is repaid.
Also, there is a loophole in this.
If your product is successful, and it sells like water in the desert, you can actually pay a partial amount.
If the maximum percentages of the Conditional Grant have been repaid by the maximum number of years following the first commercial transaction of that product, then no additional payments to SIIRD are required.
So if in one year since the first transaction you’ve paid back 68% of the grant, or 76% in 2 years, or 82% in 3 years, or 91% in 4 years, or 98% in 5 years, then you’ve gotten away with it.
If not, then you have to pay full price.
Anyway, the fund is great, the foundation is awesome, and if you’re a company owned by Singapore and Israel partners that qualify for a grant or funding from them, then it should be exactly what you are looking for.
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