Funding for Singapore’s tech startups up 56% in first half of 2021, says Enterprise Singapore

Tech startups in Singapore have seen a 56% growth in funding and raised S$5.3 billion (US$3.9 billion) from 355 deals in the first half of 2021, said Peter Ong, chairman of Enterprise Singapore. In comparison, tech startups raised S$3.4 billion (US$2.5 billion)  from 317 deals in the same period last year.

Singapore’s tech startup ecosystem has remained resilient in the face of the pandemic, despite having to grapple with revenue losses, reduced cash flow, and layoffs, Ong added.

Photo credit: Enterprise Singapore

Enterprise Singapore is a government agency that backs the city-state’s growth as a hub for global trading and startups. the agency works with companies to build their capabilities, innovate their products, and chalk out a plan of expansion.

In a bid to sustain the momentum in Singapore’s startup ecosystem, Enterprise Singapore’s investment arm, Seeds Capital, has appointed 13 new co-investment partners to join it in pumping money into deep tech startups under the Startup SG Equity Scheme.

The move to bring in new partners is expected to catalyze over S$150 million (US$111 million) worth of investments into deep tech startups across advanced manufacturing and engineering, health and biomedical sciences, and urban solutions and sustainability. With the latest appointments, the total number of active partners in Seeds Capital stands at 46.

Under the Startup SG Equity scheme, partners will help startups fast-track their commercialization process through mentorship and also provide them with potential clients through their networks.

See also: Is Singapore’s struggle with LGBTQ acceptance hampering its tech ambitions?

Seeds Capital will also supply co-matching funding on a 7:3 basis for the first S$500,000 (US$370,000) of co-investment, with a cap of up to S$8 million (US$5.9 million) per startup.

“Over the past few years, we have invested in over 100 startups globally on solutions to eliminate plastic waste, promote a circular economy, reduce our carbon footprint, and generally to make cities more livable and sustainable,” said Jupe Tan, managing partner of Plug and Play, one of Seeds Capital’s partners that will look to invest in the urban solutions and sustainability domain.

Plug and Play aims to invest in Singapore-based startups and give them access to its network through partnerships with organizations like Asian Development Bank and Alliance with the aim of ending plastic waste disposal.

Meanwhile, other co-investment partners in Seeds Capital include MassMutual Ventures and Real Tech Holdings.

Currency converted from US dollar to Singapore dollar: US$1 = S$1.35