INVEST in a high-tech start-up company in Singapore, and a large chunk of the money could come from a $50 million government kitty.

The National Research Foundation (NRF) yesterday launched a scheme that invites local and foreign entrepreneurs to invest in early-stage start-ups. It co-funds up to 85 per cent of the capital needed by each start-up, up to a maximum of $500,000.

It hopes that the expertise that experienced entrepreneurs bring with them will help the start-ups make it past the 'valley of death', the early stages when funding is scarce and many promising companies fail.

Said NRF chief executive Francis Yeoh: 'Such systematic mentoring support is essential, particularly for first-time entrepreneurs, to help them manage the great complexity of starting a technology business.'

Another carrot for investors is that they have the option to buy out the foundation's share in the start-up within three years, paying a nominal interest of 5 per cent a year on its investment.

The new Technology Incubation Scheme - modelled after a successful Israeli programme - comes under the $360 million National Framework for Innovation and Enterprise announced by Prime Minister Lee Hsien Loong in March last year.

Investors will need to have the resources to invest in new start-ups as well as the physical space to house them, said the foundation. They must also be able to provide support in the form of mentoring and access to potential clients and help in getting further funding.

Proposals should be submitted by e-mail to nrf_contact@nrf.gov.sg by Sept 30.

This article was first published in The Straits Times.