Can Singapore’s private capital market sail through rough global waters?

In 2022, venture capital funding in the city-state fell further to US$10.99b.

Singapore’s private capital market was not exempt from the effects of the worsening global financial environment as its venture capital funding further fell in 2022 to US$10.9b.

Experts from Enterprise Singapore and DealStreetAsia, however, believe that Singapore can sail through the unfavourable global climate by focusing on the development of its deep tech ecosystem.

“Thanks to continued investments by local universities and the Singaporean government through vehicles such as SEEDS Capital and SGInnovate, many startups have become sophisticated operators and have secured fresh private capital based on their innovations,” the Enterprise Singapore and DealStreetAsia report stated.

“Aided by impact-conscious investors, family offices and foundations, Singapore’s deep tech startups should emerge as an even more vital pillar in the local tech ecosystem this year,” the report added.

In 2022, deep tech startups in Singapore lured the interest of larger investors.

“More companies were able to attain higher levels of maturity. At least 21 startups graduated from Seed to Series A, amassing US$643M in fresh capital, while seven completed Series B rounds worth $356M,” the report stated.

The report added that Singapore’s venture-backed companies are well-positioned to navigate the choppy waters ahead, given that obtaining capital is easier in Singapore compared with other financial centres in Asia since they have access to “top-notch soft and hard infrastructure.”

To add, Singapore has “favourable tax policies, supportive business environment, and high standard of living,” which will continue to attract entrepreneurs and highly skilled talent from across the world.