DISCLAIMER: This post was last modified on 12 October 2022. Some information in this article may not be updated.

Singapore continues to position itself as one of the strongest investment destinations for funds and startups globally. The city-state’s startup scene has experienced significant growth over the past years amid pandemic-driven market limitations. Thanks to Singapore’s thriving venture capital (VC) funding for startups, the city-state benefits from market innovation and growth. 

Singapore is an attractive hub for high-quality startups, having ranked as the 18^th best startup ecosystem in the world.  

In this blog, we delve deeper into Singapore’s startup scene and why you should be a part of it. 

By the numbers

Recent figures from local institutions prove how successful Singapore’s startup scene is. 

In 2017, the government established Startup SG, solidifying Singapore’s vibrant startup environment. The agency is focused on investigating Singapore’s startup initiatives and programmes. At present, Startup SG lists 4,002 startups, 631 investors (including venture capitalists and private equity, amongst others), and 227 incubators and accelerators domiciled in Singapore. The country also minted 11 unicorns in 2021. 

The financial technology sector leads the country’s startup ecosystem. In the first nine months of 2021 alone, Singapore’s fintech sector accumulated about S$11.2 billion in VC funding. This is a significant increase from the previous entire year of 2020, more than doubling the S$5.5 billion VC funding for Singapore-based fintech startups. 

Enterprise Singapore (EnterpriseSG), a government agency authorised to support the development and innovation of the country’s startups and global trading, greatly contributes to Singapore’s booming entrepreneurial state. The agency reported that funding activities in Singapore had considerably increased by more than 45 per cent per year between 2017 and 2021 when the VC startup funding reached S$14.7 billion. In the first half of 2022, Singapore’s VC fund investments have already reached S$8.18 billion across 388 investment deals. That was a 54 per cent increase versus the same period in the previous year.  

EnterpriseSG’s Edwin Chow, Assistant CEO (Innovation and Enterprise), pointed out the rising number of family offices in the city-state. The government agency is intent on bolstering the presence of family offices and other investors in the country. Chow notes that a boost in the number of institutional investors would suggest favourable long-term developments for Singapore’s startups.

What to look out for

Aside from boosting VCs, family offices, and other investment vehicles, government schemes are also readily available for aspiring startups in Singapore. As previously mentioned, Startup SG pushes several initiatives and programmes to promote Singapore’s startup and venture capital funding.  

The agency, along with other collaborators, organises events such as masterclasses, training programmes and competitions, to name a few. Examples of such programmes are: 

• Open Innovation Network (launched in 2019) 
• Global Innovation Alliance (GIA) programmes 
• Co-Innovation Programmes (CIPs) 

EnterpriseSG also connects with partners to open more opportunities for startups to build connections and have a platform for innovation. Some of these partners are IPI Singapore and Centres of Innovation (COI). 

Singapore’s startup landscape is booming, thanks to increasing VC funding, which means competition is also becoming tight. Investors would benefit from investing in startup companies that provide solutions to national-level affairs that the government is also trying to tackle; some of which are sustainability and food security. This strategy reflects the effort towards innovation and long-term value creation through startups and investments. 

This diverse startup ecosystem in Singapore provides a wide opportunity for aspiring venture capitalists, family offices, investors and startups to penetrate the market. Aside from this, other possible factors that contribute to the success of startups in Singapore and increasing VC funding, according to the Asian Development Bank’s annual report, are as follows: 

• Ease of doing business (Singapore ranked second on the World Bank’s ranking) 
• Notable infrastructure and connectivity 
• Favourable taxation  
• Strong intellectual property and property rights regimes 
• International and diverse talent 
• Strong support for research and development 
• Accessible funding 

Apart from the booming startup scene in Singapore, VCCs have also flourished in the Singaporean market. In a previous blog, we discussed why and how to set up a variable capital company (VCC) in Singapore.

How we can help

Bolder Group’s Singapore office offers services such as company formation and management services, as well as family office setup. As an independent global fund administrator, we also carry out services in multiple jurisdictions.  

Are you interested in setting up a company or fund in Singapore’s competitive market? Connect with us to make the process easier.

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.