In the dynamic landscape of Southeast Asian start-up ecosystems, Singapore has firmly established itself as the top investment destination, according to a recent report jointly released by Enterprise Singapore and DealStreetAsia.
Despite a slight downturn in funding, Singapore maintained its leading position in 2023, commanding a remarkable 63.7 percent share of all equity deals among the ASEAN-6 nations, which include Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
The report also highlights Singapore’s deep-tech sector. In 2023, the deep-tech start-up ecosystem in Singapore will increase a noteworthy 31.4 percent compared to the previous year. It is a robust recovery from a 38.9 percent drop in 2022. However, there was a decline in deal value to US$1.53 billion, down by 18.4 percent from the previous year to S$2.07 billion in 2023
Cindy Ngiam, the director of EnterpriseSG’s start-up ecosystem, said, “As investors prioritise strong fundamentals during this funding winter, the resilience and solid foundation Singapore has built into its tech and innovation ecosystem are what will allow us to further our growth in deep tech.”
The report also noted the expanding utilization of artificial intelligence (AI) and machine learning in Singapore’s deep-tech start-ups. The recent surge in private funding for AI companies in the United States has also influenced investors to see Singapore as the right place.
Aditya Mathur, managing director of Elev8.vc venture capital firm, said the rapid expansion of Singapore’s deep-tech ecosystem has begun since 2019. “In the past, we used to look around the world (for start-ups) but now I think Singapore is generating enough deal flow for us,” he said. “The number of quality deep tech start-ups and world-class founders has grown immensely.”
Despite declining overall funding, early-stage deals have garnered increased attention from investors. In 2023, early-stage funding accounted for 94.1 percent of deal volume. However, early-stage start-ups in Singapore faced challenges amid the funding crunch, experiencing a decrease in deal volume and value.
Nevertheless, Singapore keeps attracting global and regional investors drawn to its start-ups’ strong fundamentals, innovative solutions, and growth potential. Moreover, numerous tech companies with a base in Singapore have reached substantial valuations surpassing US0 million, namely Shopback, Thunes, and SCI Ecommerce.
