We have been receiving many enquiries recently about product development using the EDG Grant. Majority of these enquiries come from the technology industry, such as IT companies and software houses that want to develop their own Software-as-a-Service (SaaS) products. Unfortunately, it is not so straight forward to apply for the EDG for product development.
Firstly, 1st products are not eligible for the EDG Grant. Only companies that have successfully commercialized a first product before will be eligible. Most of the time, companies always fall short of this requirement in 2 areas:
(a) developed various customizations of the solution for client before - this is not considered a product.
(b) developed a product before but it did not take off - this is not considered to be successful.
Therefore, not many companies are able to fulfil this criteria.
Secondly, the next criteria is that the solution will need to contain high levels of technology in relation to industry norms. So for SaaS level products, it would need to demonstrate the latest trends like blockchain, AI, microservices, and more.
To find out more about Product Development under the EDG, you can visit this link.
That being said, the EDG can still help you to develop your product in 2 indirect ways, and this is via the Automation angle:
(1) If you manage to find a client that wishes to develop the solution or product, then the client can apply for the EDG Grant and engage you as the vendor to develop it for them. After you have developed the solution for the client, depending on the contract terms, if you still retain ownership of the solution, that you can further spend your own resources to further upgrade the solution into an SaaS product.
(2) You may need the solution for your own use. For example, it could be a CRM system to help you to manage your own clientele. So, you can apply for the EDG to develop this CRM for own productivity benefits. After it has been developed and applied to your own operations, you can further invest your own resources to convert the solution into an SaaS model for other companies to make use of too.
Either way, under this Automation approach, the EDG will only cover the expenses to develop the solution for your client or for yourself, and it will not include converting it into a product.
At NCODE Consultant, we have the technological expertise to help you with SaaS development as well. So if you are looking for a one-stop solution provider to take care of you product development and EDG grant needs, speak with one of our friendly consultants today!