Singapore startups bag $5.5 billion in funding in 2020 despite Covid-19
Startups in Singapore were able to raise funds totaling $5.5 billion last year even though the coronavirus pandemic seriously disrupted the innovation ecosystems in the city state.
While the figure is below the $8.5 billion in 2019 and $14.3 billion raised in 2018, it is still remarkable and “shows the resilience of Singapore’s investment landscape and gives the republic confidence that it can do well despite the pandemic,” Tan See Leng, Singapore’s second minister for trade and industry, said at a media presentation on March 30, adding that the amount was also almost three times what was received five years ago.
He pointed out that a study by the World Bank has been lauding the characteristics of Singapore’s ecosystem, “which includes strong government leadership and responsiveness to market changes, the country’s strong university network and its substantial investment activity.”
Singapore is a leader in Southeast Asian venture capital and private equity investment, with the country accounting for over half of the total aggregate value of venture capital deals in the ASEAN region since 2014, the study found.
Incubators, accelerators, intermediaries drive the startup business
The city state is also home to numerous ecosystem enablers, namely about 190 incubators, accelerators and related intermediary organisations, which support startups. A growing number of startups is also participating in government schemes.
However, acquiring and retaining talent remains a challenge for startups in the city state as the country is has limited skilled manpower due to its small size. Startups also face competition from multinational corporations for talent, and restrictions on the number of foreign workers are also another stumbling block, the report said.
Another issue found in Singapore is a gap in early-stage funding where the nation is ranking below the global average. Startups in Singapore looking to venture abroad may also find it harder to scale into a neighbouring market as they face stiffer competition from regional counterparts given that nearby countries like Vietnam and Indonesia have also started establishing their own startup ecosystems, the report said.
Startups in Singapore were able to raise funds totaling $5.5 billion last year even though the coronavirus pandemic seriously disrupted the innovation ecosystems in the city state. While the figure is below the $8.5 billion in 2019 and $14.3 billion raised in 2018, it is still remarkable and “shows the resilience of Singapore's investment landscape and gives the republic confidence that it can do well despite the pandemic,” Tan See Leng, Singapore’s second minister for trade and industry, said at a media presentation on March 30, adding that the amount was also almost three times what was received five years...
Startups in Singapore were able to raise funds totaling $5.5 billion last year even though the coronavirus pandemic seriously disrupted the innovation ecosystems in the city state.
While the figure is below the $8.5 billion in 2019 and $14.3 billion raised in 2018, it is still remarkable and “shows the resilience of Singapore’s investment landscape and gives the republic confidence that it can do well despite the pandemic,” Tan See Leng, Singapore’s second minister for trade and industry, said at a media presentation on March 30, adding that the amount was also almost three times what was received five years ago.
He pointed out that a study by the World Bank has been lauding the characteristics of Singapore’s ecosystem, “which includes strong government leadership and responsiveness to market changes, the country’s strong university network and its substantial investment activity.”
Singapore is a leader in Southeast Asian venture capital and private equity investment, with the country accounting for over half of the total aggregate value of venture capital deals in the ASEAN region since 2014, the study found.
Incubators, accelerators, intermediaries drive the startup business
The city state is also home to numerous ecosystem enablers, namely about 190 incubators, accelerators and related intermediary organisations, which support startups. A growing number of startups is also participating in government schemes.
However, acquiring and retaining talent remains a challenge for startups in the city state as the country is has limited skilled manpower due to its small size. Startups also face competition from multinational corporations for talent, and restrictions on the number of foreign workers are also another stumbling block, the report said.
Another issue found in Singapore is a gap in early-stage funding where the nation is ranking below the global average. Startups in Singapore looking to venture abroad may also find it harder to scale into a neighbouring market as they face stiffer competition from regional counterparts given that nearby countries like Vietnam and Indonesia have also started establishing their own startup ecosystems, the report said.
