As one of the leading startup hubs in Asia, Singapore has played a pivotal role in driving the growth of the region's startup ecosystem. To date, the country is home to 20 unicorns and over 4,500 startups.
Singapore's startup sector continues to show impressive performance, with total equity funding reaching $2.08 billion in Q3 2023.
Over the past decade, Singapore's reputation as a magnet for startups has grown rapidly. The number of startups securing more than $1 million in funding has increased significantly, more than tripling between 2015 and 2022.
Fintech and AI Boom in Singapore
Singapore's fintech sector has seen the most rapid growth in recent years, thanks to a robust financial ecosystem and high technology penetration. Startups such as Coda Payments and Advance Intelligence Group are examples of success, while large unicorns such as Grab and Sea Limited have played significant roles in various strategic sectors, including e-commerce, digital payments, entertainment, and gaming.
In addition to fintech, the deep-tech and artificial intelligence (AI) sectors have also grown rapidly, with companies such as Trax securing significant funding to reach US$1.07 billion by mid-2023. Singapore continues to strengthen its position as a hub for technological innovation in the region.
Why Startups Bloom in Singapore
Singapore's government initiatives have created a fast-growing startup ecosystem, attracting stakeholders from different regions. Venture capital firms have also played a significant role in supporting this ecosystem, with total funding reaching $6.1 billion by 2023.
In addition, the country offers a highly conducive environment for startups, including low tax rates for medium-sized companies and tax exemptions for startups that generate less than SGD 100,000 per year. This contributes to Singapore's high global ease of doing business ranking.
The growth of the middle class and rapid digitalization in Southeast Asia are also driving factors, providing strategic advantages for companies operating in Singapore. In addition, the strong legal framework, particularly with regard to intellectual property rights, increases the confidence of companies to invest in research and development, especially in the technology sector.
