Singapore Boosts Deep-Tech Startups with S$440 Million Funding Expansion

Singapore is set to allocate an additional S$440 million (approximately US$332 million) to the Startup SG Equity scheme, which aims to enhance private-sector investments in deep-tech startups within the city-state. 

Deputy Prime Minister Heng Swee Keat announced this initiative on Monday, highlighting its role in supporting Singapore’s broader goal of supporting innovation and research as outlined in the S$28 billion Research, Innovation, and Enterprise (RIE) 2025 plan.

The funding will increase the investment cap per startup from S$8 million to S$12 million. EnterpriseSG and the Singapore Economic Development Board (EDB) will administer the scheme, which has been in place since 2017. So far, over 330 startups have benefited from this program, which aims to help deep-tech companies scale their operations by matching private-sector funding.

This announcement follows a modest decrease in venture capital raised by startups in Singapore, totaling US$4 billion over close to 370 deals this year. Deputy Prime Minister Heng acknowledged that this dip aligns with a broader global trend, as venture funding has dropped by around 15% worldwide.

The newly allocated funds will allow the Singapore government to invest alongside both local and international investors to boost private-sector funding for deep-tech startups. DPM Heng emphasized that deep tech is challenging and costly to develop, necessitating a robust ecosystem to support innovators and startups in this sector.

“To enhance support for deep-tech startups during their early growth stages, we will extend our funding to include companies at seed through Series B and C,” Heng stated during his address at the Singapore Week of Innovation and Technology (Switch) 2024.

Alongside the funding expansion, Singapore is advancing initiatives to support a more globally connected innovation ecosystem. In the first quarter of next year, the government will introduce StageOne, a program designed to bridge Singapore’s startup community with global counterparts, enabling them to leverage Singapore as a springboard for international growth. 

Additionally, a series of open innovation challenges (OICs) will allow companies to address sector-specific needs. This includes the AI OIC, which has already attracted participation from key players in industries such as infrastructure, automotive, and hospitality, and a Sustainability OIC focused on helping firms meet environmental goals.

To broaden market access, EnterpriseSG is also enhancing the Global Innovation Alliance (GIA) by expanding into the Netherlands with new nodes in Amsterdam and Eindhoven, bringing the network to 23 nodes worldwide. 

This expansion will allow Singapore startups to collaborate with Dutch companies, including well-known corporations like Alliander, ASML, Philips, and Shell, which will facilitate entry into the European market.