S’pore the top start-up investment destination in S-E Asia: Report
Singapore
Singapore
MEMBERS:
Enterprise Singapore
I am thrilled by Singapore's ascent as the core Pan Asia Startup Ecosystem hub. It brings together visionary founders and investors to advance Deep Tech- and AI-driven innovations, cementing its position as a leading force in the region.
Highlights
Singapore is a leading startup ecosystem in Southeast Asia, distinguished by its dynamic pro-business climate and attractive position for accessing the Southeast Asian market. In 2023, Singapore dominated the regional tech funding landscape, capturing 63.7% of the region’s deal volume and 73.3% of its deal value, with investments totaling $6.1 billion across 522 transactions.
Singapore is home to 4,500 tech startups, 400 VCs, and 240 accelerators, venture builders and incubators, laying a strong foundation for a globally competitive ecosystem. It is evolving into a global Deep Tech hub, focusing on technology-intensive products rooted in extensive scientific research.
Over the past three decades, Singapore has made significant investments to develop its Deep Tech ecosystem, including committing 1% of its GDP to The Research, Innovation and Enterprise 2025 Plan, the most substantive R&D budget in the country’s history. The investments have translated to an impressive scientific research base of nearly 40,000 researchers, scientists and engineers, supported by a strong IP protection regime. This commitment to research and innovation has led to a 31% increase in Deep Tech deals, totaling 159 transactions in 2023. In 2023, 24 local startups progressed to Series A and 10 to Series B funding rounds.
Singaporean startups benefit from access to a growing pool of global Deep Tech VCs such as Emerald Ventures, Mass Mutual, Wavemaker Partners, and Ele8.vc. Through Startup SG, an initiative by Enterprise Singapore in collaboration with ecosystem partners, startups can access a wide range of local support initiatives and a platform to connect on the global stage.
Ecosystem by the Numbers
NUMBER OF UNICORNS
(H2 2021 - 2023)
Sub-Sector Strengths
Life Sciences
In 2023, Singapore’s healthtech startups raised $409 million, with deal volume doubling from the previous year. Local startups like Mirxes raised a July 2023 $50 million Series D. The city-state is an attractive Life Science hub with global corporates driving demand for solutions. Initiatives such as the partnership between the Singapore Economic Development Board and Johnson & Johnson's JLABS to accelerate biotech startups, the establishment of Merck’s first Digital Hub in Asia, and the upcoming Geneo Life Sciences and Innovation Hub further solidify Singapore’s position in the industry.
AI, Big Data & Analytics
Singapore continues its growth as a global center for AI, with a February 2024 $734 million five-year investment plan announced to develop the industry. Its AI strengths are supported by world-class research institutions, a skilled workforce, and a favorable regulatory environment. Initiatives including the Model AI Governance Framework for Generative AI and partnerships with Google Cloud for AI Trailblazers demonstrate Singapore's commitment to advancing AI. Chip integration company Silicon Box's $200 million January 2024 Series B propelled it to unicorn status, signifying Singapore’s strength in AI development.
Cleantech
In 2023, Green Tech deals more than doubled in volume, comprising investments in a range of sustainability solutions including renewable energy and waste management. Notable funding rounds in the sub-sector include Lithium-ion battery recycling technology company Green Li-ion’s $20.5 million pre-Series B. Projects highlighting Singapore’s Cleantech growth include Swiss engineering company Sulzer’s $7.3 million Innovation Technology Hub (InTecH), opened in March 2024, and the construction of Singapore’s first hydrogen-ready power plant, the Keppel Sakra Cogen Plant, set for completion in H1 2026.
Reasons to Move Your Startup to Singapore
Strong Market Access
Singapore is home to more than 7,000 multinational corporations and has strong free trade networks with over 27 free trade agreements and partnership agreements with major economies, making it an ideal partner. Startups can tap on Singapore's Global Innovation Alliance, a network across 45 world-leading innovation hubs and global R&D networks to accelerate into new markets.
Deep IP and Deep Tech Expertise
Singapore is a hotbed for pioneering IP and Deep Tech solutions across industries, with nearly 40,000 research scientists and engineers working in fields such as quantum engineering, precision medicine, and renewable energy. It ranks sixth worldwide for Quantum Research. Strategic investments in R&D. Robust intellectual property laws attract top talent and global companies like Microsoft, Google, and Mead Johnson cite Singapore's strong IP rights protection.
Ease of Doing Business
Singapore boasts top-tier talent, streamlined setup processes, and a robust investor network. INSEAD ranked Singapore as the second most attractive destination for global talent in 2023. Singapore offers entry options for tech talent and entrepreneurs including the ONEPass and work visa EntrePass. Setting up a business in Singapore takes less than 1.5 days and is complemented by a lively funding scene and extensive support.
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