Looking ahead at Singapore’s economy for 2023, there is a reason for optimism in the tech startup scene, especially for early-stage, deep tech companies and investors. While venture capital investment decreased globally in 2022, early-stage fundraising saw less of a drop. There is deeper liquidity in early-stage investments than ever before, which favors Singapore-based companies. Singapore has remained active in the venture capital scene, with the bulk of its companies being early stage, but this is not the only reason why Singapore is drawing investor interest.
The Singapore government launched SG-Innovate, which focuses on developing the deep technology space, including AI, robotics, digital health, smart energy, and transportation, and has attracted entrepreneurs and private sector partners, educational institutions, and research organizations. The Singapore Global Investor Program also allows eligible investors to relocate to and invest in Singapore. This has resulted in an influx of people moving to Singapore, which has provided funding opportunities for Singapore-based startups.
Many factors make Singapore an attractive destination for startups, including a strong and stable government, a merit-based educational system, a diverse population, international trading and travel hubs, and a reliable banking system. Singapore has become a hub for software, enterprise, and e-commerce startups, especially in the deep tech sector, with major companies such as Google, Facebook, Amazon, Stripe, Salesforce, and Grab setting up regional hubs there. Singapore is gaining steam as a new tech hub, and global investors are looking to it as a source of cutting-edge technological advancements.