Singapore’s early-stage emerging tech startups experienced a 14% increase in deal volume in 2024, despite an 8% decline in overall funding, according to SGInnovate’s latest report. The growth was driven by strong global demand for computing hardware innovation and decarbonisation solutions, particularly in the Advanced Manufacturing and Sustainability sectors.
The report, which examines developments in Singapore’s tech startup ecosystem, also introduced a new focus on Cybersecurity startups. This sector has gained prominence due to increasing cyber threats from technologies like generative AI and quantum computing. Between 2020 and 2024, 68 Cybersecurity startups were established in Singapore, with 42% successfully securing funding. In 2024, these startups raised $42.5m across 10 deals, although funding rounds still lag behind global averages.
The report further noted a 56% increase in intermediate funding rounds, such as Seed+ and Pre-A, as startups sought to extend their capital runways amidst uncertain market conditions. The number of new tech startups remained stable, with 27 incorporations in 2024 compared to 25 in 2023.
SGInnovate’s Executive Director of Investments, Tong Hsien-Hui, commented on the resilience of Singapore’s tech ecosystem, stating, “Given the sustained global discourse surrounding trade, technological sovereignty, energy security and climate change, it was expected that the Advanced Manufacturing and Sustainability sectors have attracted strong investor interest over the past year.”
Looking ahead, the report suggests that private markets may remain cautious due to geopolitical uncertainties, but this could spur innovation in areas like photonics and semiconductors. The demand for renewable energy solutions is also expected to rise, potentially boosting Singapore’s tech ecosystem further.
