Singapore is increasingly recognized as a significant player in the global deep tech landscape, a sector that includes advanced technologies such as artificial intelligence, robotics, and biotechnology.
This shift comes as the city-state aims to diversify its economy and enhance its innovation capabilities. A notable example of Singapore’s influence is Moovita, a startup that recently launched a driverless bus service in Tianjin, China.
Moovita, a spinoff from the Agency for Science, Technology, and Research (A*STAR), is the first foreign autonomous vehicle provider licensed in China.
CEO Derrick Loh highlights China’s importance as a market for autonomous vehicles, despite fierce competition from local giants like Baidu and Pony AI.
Over the past two years, deep tech startups have become vital to Singapore’s investment scene. In 2023, deep tech investments surged by 31%, even as overall investment volumes fell by 20%.
This sector accounted for 25% of total deal value, surpassing the global average of 20%. Most investors were local or American, but interest also came from Taiwan, Japan, France, and Malaysia.
This rise in deep tech investment has propelled Singapore up Startup Genome’s global startup ecosystem rankings from 18th in 2022 to 7th in 2023, making it the highest-ranked city in Asia.
Investors recognize that deep tech is gaining importance amid geopolitical tensions and supply chain shifts. The pandemic highlighted this need with developments like mRNA vaccines.
Singapore’s Emergence as a Startup Hub
Singapore’s growth into a startup hub includes approximately 4,500 startups and over 400 venture capital firms. The city-state benefits from a strong talent pool of nearly 40,000 researchers and engineers.
Government support, favorable tax policies, and strategic location contributed to this ecosystem’s success. Events like the Singapore Week of Innovation and Technology (SWITCH) foster collaboration among researchers and industry players.
The region has traditionally focused on consumer technology sectors like e-commerce but is now shifting toward deep tech. However, fundraising for deep tech startups remains challenging.
Pham Quang Cuong, CEO of Eureka Robotics, faced difficulties securing local investment due to a lack of success stories. He ultimately sought funding from international investors like Japan’s University of Tokyo Edge Capital.
Despite these challenges, interest in deep tech is growing among traditional venture capitalists. Kiran Mysore from UTEC notes that these companies tackle enduring problems unaffected by economic fluctuations.
The National University of Singapore has spun off over 70 startups in the last decade, with their aggregate value rising significantly. Manufacturing remains crucial for Singapore’s economy, accounting for about 20% of its GDP.
In summary, Singapore is positioning itself as a key player in the global deep tech sector through strategic investments and government support.
As it continues to nurture local innovation while attracting international interest, Singapore aims to solidify its role as a hub for advanced technologies.
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