Singapore - Best Destination for Startup Investment in Southeast Asia

Singapore - Best Destination for Startup Investment in Southeast Asia

In 2023, Singapore emerged as a magnet for startup investment in Southeast Asia, according to a joint report by Enterprise Singapore and DealStreetAsia.

According to the report, startups operating in Singapore accounted for 63.7 percent of total equity deals in the ASEAN-6 region - comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. This figure was up from 56.7 percent in the previous year, 2022.

The report by Enterprise Singapore and DealStreetAsia shows that Singapore's high-tech startup ecosystem grew by 31.4 percent in 2023, recovering from a 38.9 percent decline in 2022, although deal value declined by 18.4 percent to US$1.53 billion (S$2.07 billion).

The report also noted that tech startups in Singapore are increasingly adopting AI and machine learning, reflecting changes in research and development and cost management. The increase in private funding for AI companies in the US may also inspire investors, including those in Singapore.

Venture-backed companies in Singapore secured US$6.1 billion in 2023, down 44.7% from 2022, amid a 53% decline in deals in the ASEAN-6. The share of early-stage deals increased to 94.1%, up from 89.9% in the previous year. However, deal value for early-stage startups declined by 37%.

Despite funding pressures, investor interest in Singaporean startups with strong and innovative business fundamentals remains high. Singapore is also home to several technology companies valued at over US$500 million, such as ShopBack, Thunes and SCI Ecommerce.

Tags: investment

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