Singapore startup landscape remains resilient amidst COVID-19

Tech startups drew in $5.5b of capital over the past year.

Singapore’s startup ecosystem remains resilient amidst challenges brought by COVID-19, as Second Minister for Trade and Industry Tan See Leng noted in a speech earlier this week. He advised that tech startups in the city-state welcomed about $5.5b worth of investments over the past year.

Tan added that through combined efforts of the government and other industry players, including the Action Community for Entrepreneurship (ACE), the number of tech startups continue to increase. There were at least 3,600 in 2019, together with around 190 incubators and accelerators. Over 200 venture capitalists are also based in Singapore now.

“ACE has done a great job in helping startups to tide over this difficult period by creating impactful programmes, and facilitating talent development and opportunities for all our startups,” he said.

Referencing a recent study conducted by the World Bank, Tan mentioned that private venture capital remains critical for startups. This is especially for those in deep technology sectors, since they require longer runways, longer gestation periods, and riskier financing.

“In order to catalyse more of these private sector financing (opportunities), the government has been working with and will continue to work closely with financial institutions and investors to provide the financing that is needed to fuel the growth of these startups,” he said.

Moreover, citing the increased regional competition, Tan described that the rapid growth of Singapore presents opportunities for startups to access regional market demand through tapping Singapore as a gateway.

Initiatives like Global Innovation Alliance network were established to support this.

“Through our acceleration programmes and market connections, we hope to help [startups] expand their global market presence as well as seek innovation partnerships,” Tan said.