In a significant move to invigorate the deep-tech startup landscape, Singapore’s Deputy Prime Minister Heng Swee Keat announced an additional S$440 million allocation to the Startup SG Equity scheme on October 28, 2024. This initiative aims to stimulate private-sector investments in deep-tech startups, which have been recognized as crucial yet challenging sectors for innovation.

Enhancing Funding Support for Startups

The enhanced funding is part of Singapore's broader S$28 billion Research, Innovation, and Enterprise (RIE) 2025 plan. Deputy Prime Minister Heng acknowledged that while the venture capital landscape in Singapore has experienced a slight decline—totaling US$4 billion across nearly 370 deals this year—the new funds are designed to foster an environment conducive to growth and innovation. He noted that this downturn aligns with a global trend, which has seen venture funding decrease by approximately 15%.

By injecting more capital into the Startup SG Equity scheme, the government intends to co-invest alongside both local and international investors. This strategic move aims to catalyze increased private sector engagement in deep-tech ventures. DPM Heng emphasized the necessity of creating a robust ecosystem to support these innovators, acknowledging the complexities and costs associated with deep-tech development.

Expanding Investment Caps

Under the revised initiative, funding support will now encompass early growth-stage companies, extending from Seed to Series B and C stages. Moreover, the government has raised the cap on total equity investment per startup from S$8 million to S$12 million. This change reflects a commitment to providing substantial support to startups poised for scaling up on a global stage.

Enterprise Singapore (EnterpriseSG) and the Singapore Economic Development Board (EDB) will oversee the implementation of the Startup SG Equity scheme, aiming to align government investments with private sector initiatives that demonstrate strong potential for innovation and growth.

Supporting Initiatives at the Singapore Week of Innovation and Technology

DPM Heng made these announcements during his address at the Singapore Week of Innovation and Technology (Switch) 2024, a key event designed to showcase Singapore's innovation ecosystem. In addition to the funding announcement, Heng introduced several other initiatives to bolster the startup community.

One notable program, named Stage One, is set to launch in early 2025. This initiative will facilitate connections between local and global startup communities, helping them leverage Singapore as a launch pad for overseas expansion. Such initiatives aim to enhance the capabilities of startups to establish a solid base in Singapore while driving business growth.

The Deputy Prime Minister also highlighted the introduction of open innovation challenges (OICs), which will enable companies to identify and address relevant business challenges. Among these challenges is the inaugural Artificial Intelligence (AI) OIC, which aims to develop AI-powered solutions for various industries. Five companies from diverse sectors, including infrastructure consulting and automotive, have already expressed interest in this challenge.

Moreover, the Sustainability OIC, now in its sixth iteration, will continue to seek innovative solutions to help companies meet their sustainability targets, with more than S$2.5 million already committed to this endeavor.

Expanding Global Partnerships

In a strategic move to enhance Singapore's global innovation footprint, EnterpriseSG is expanding its Global Innovation Alliance (GIA) network to include the Netherlands, specifically in Amsterdam and Eindhoven. This expansion increases the GIA network to 23 nodes across 15 areas in Asia, Europe, and the United States, providing Singapore tech startups with access to the Dutch market. DPM Heng noted that this partnership would allow local startups to leverage the Netherlands' strong logistics infrastructure and connectivity to Europe, alongside collaborations with prominent Dutch companies such as ASML and Philips.

Looking Ahead: RIE 2030

As Singapore prepares for the next phase of its Research, Innovation, and Enterprise initiatives, Deputy Prime Minister Heng revealed that planning for RIE 2030 is underway, which will focus on the period from 2026 to 2030. This future strategy will continue to emphasize enhanced support for startups, particularly in the deep-tech sector. Heng stated that the government is dedicated to forging stronger links between RIE 2030 and the upcoming phases of industry transformation, driving economic growth while addressing pressing global challenges, such as climate change and an aging population.

With this substantial investment and a comprehensive approach to supporting deep-tech startups, Singapore reaffirms its commitment to nurturing innovation and entrepreneurship. The government’s initiatives aim not only to stimulate investment but also to foster a vibrant ecosystem where startups can thrive and contribute to Singapore's status as a leading global innovation hub. As the landscape evolves, these strategic moves will play a pivotal role in shaping the future of the deep-tech sector in Singapore and beyond.