SG announces $790m top-up for Startup SG Equity

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Singapore is increasing funding to help startups scale with a S$1 billion (US$790 million) enhancement to investment program Startup SG Equity, said Finance Minister Lawrence Wong. The government will also inject US$1.2 billion into the Anchor Fund, which was established in 2021.

Under the Startup SG Equity scheme, the government provides initial capital to drive private funding for promising startups.

While startups now find it easier to access early-stage capital compared to a decade ago, many still face challenges at the growth stage, said Wong, who is also the country’s prime minister, during his budget speech delivered in Parliament.

Tightening growth-stage capital globally makes it harder for many firms, especially those in deep tech, to raise the larger and longer-term funding needed to scale, he added.

The Startup SG Equity scheme – which has mainly focused on early-stage funding to date – will now be expanded to cover growth-stage companies.

Second Minister for Finance Chee Hong Tat will also be leading a new work group, which will aim to develop strategies to position Singapore as a leading center for growth capital.

Meanwhile, the new allocation for the Anchor Fund, co-invested by the government and Temasek, follows an initial US$1.2 billion tranche.

Since the launch of the Anchor Fund – which was set up to attract and anchor high-quality listings – there have been “encouraging signs of renewed listing activity” on the Singapore Exchange, Wong said.

He added: “When enterprises are ready to list, we want them to see Singapore as their listing venue of choice.”

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