SEEDS Capital Expands Support for Deep-Tech Startups with S$150M Investment

EnterpriseSG has unveiled plans to allocate S$150 million over the next three years to support innovative deep-tech startups in Singapore. As part of the Startup SG Equity scheme, this initiative aims to strengthen collaboration between local and international investors. SEEDS Capital will co-invest in key sectors such as spacetech, quantum technology, sustainability (covering urban mobility, energy, circular economy, and water), pharmbio/medtech, agrifood tech, and advanced manufacturing.

SEEDS Capital plans to inject at least US$300 million into startups over the same period in partnership with Tin Men Capital. The collaboration is expected to catalyze an additional US$219.5 million from private sector partners. 

Through the Startup SG Equity scheme, SEEDS Capital plans to drive at least S$300 million in investments to support Singapore’s deep-tech startups over the next three years. By co-investing alongside private investors, the initiative aims to boost funding in key sectors, including agrifood tech, quantum technology, space tech, and advanced manufacturing. This effort comes at a critical time as startups navigate a tough funding environment.

In addition to these new investments, SEEDS Capital has appointed 20 local and global partners, including key investors like East Ventures, Global Brain, HIVEN, Paspalis Capital, and Valuence Ventures. These new partners will bring technical expertise, commercial knowledge, and international networks to help startups expand and diversify into new markets. For instance, Paspalis Capital’s strong presence in Australia has allowed SEEDS’ spacetech investee, Equatorial Space Systems, to test its solutions, while East Ventures supported Mesh Bio’s entry into Indonesia.

The partnership also benefits startups looking to navigate complex international markets. With its network in Japan, Global Brain helps local startups localize their strategies and build relationships with Japanese corporates, facilitating smoother market entry. Tatsuya Matsumoto, partner at Global Brain, highlighted how their support ensures long-term partnerships and better solutions integration into local markets.

The initiative enhances the local startup ecosystem by bringing in investors such as K3 Ventures, iGlobe Partners, Monk’s Hill Ventures, and Vickers Venture Partners. These firms provide crucial mentorship, especially in areas like regulatory guidance and business scaling within Singapore. Arun Pai from Monk’s Hill Ventures highlighted that Singapore’s deep-tech sector has reached a pivotal stage, with many startups focusing on advanced fields like material science in agritech, AI-driven healthcare diagnostics, and robotics. 

SEEDS Capital’s focus on deep-tech startups is particularly important due to their long technology development cycles and the large capital required for growth stages, including production scaling and clinical trials. 

The new partnerships with specialized funds such as Kurma Partners, 22Health Ventures, Eurazeo, and Shift4Good will provide startups with the expertise needed to scale effectively in sectors like healthcare and sustainability. 

Cindy Khoo, chairman of SEEDS Capital, expressed enthusiasm about the growing interest from both established local funds and international venture capital firms with deep expertise in backing deep-tech leaders. SEEDS remains committed to nurturing deep-tech startups and will work alongside its new partners to scale innovative and impactful technologies. 

Since its inception, the Startup SG Equity scheme has injected nearly US$2.2 billion into over 330 startups. To further support early-stage ventures, SEEDS Capital has raised its co-investment cap from S$8 million to S$12 million per startup. SEEDS Capital will merge with EDBI to form SG Growth Capital Pte Ltd, effective April 2025. This merger is expected to consolidate investment expertise and networks, further supporting the development of innovative enterprises in Singapore, particularly within the deep-tech sector.