Venture capital sector sees further expansion in Singapore - Waystone

      Venture capital sector sees further expansion in Singapore

      Singapore's venture capital ecosystem has been gradually developing over the past few years and is now one of the most well-known venture capital hubs globally.

      Despite the COVID-19 pandemic, Singapore’s start-up environment has continued to prosper and has stayed buoyant. In 2021, start-ups in Singapore raised a total of S$14.7 billion, almost triple the amount that was raised in 2020.

      Singapore is also making its mark as the start-up hub of Southeast Asia. In spite of the pandemic, Southeast Asian start-ups raised a record US$25.7 billion in funding in 2021, more than double that raised in 2020. Among the top 10 fundraisers in Southeast Asia in 2021, half of the start-ups were headquartered in Singapore with total funds raised of close to US$3 billion. These significant milestones point to a maturing start-up ecosystem in Southeast Asia, with Singapore at the forefront of developments.

      There has also been a growth of new venture capital (or VC) funds being formed, driven by the increase in Southeast Asian start-ups. It has been reported that seven out of the 22 funds that reached a final close in 2021 were first-time funds, up from just three in the previous year.

      In spite of the covid 19 pandemic, the fundraising climate in Southeast Asia has showed no signs of slowing. Fintech remains a key space in Singapore’s start-up ecosystem, with decentralised finance and blockchain start-ups in particular forming a sizeable sub-sector. The e-commerce and logistics sectors also remain bright spots. With the increasing focus on environmental, social and governance (ESG) issues regionally and globally, it is expected that start-ups in the ESG space will be a growing sector in Singapore’s venture capital landscape. Other sectors that are attracting more focus locally include advanced manufacturing, health, biotech and agritech.

      Waystone can assist with obtaining the Capital Market Services Licence to operate in Singapore as a Venture Capital Fund Manager. Please reach out to us for an initial discussion.

      Previous post Next post
      Share

      More like this

      Regulatory Compliance Updates November 2022 – APAC Region

      29 November 2022 - Compliance Toolkit for Approvals Notifications and Other Regulatory Submissions to MAS for Special Purpose Reinsurance Vehicles…
      Read more

      ASEAN Central Banks sign MOU

      At the recent G20 Leaders’ summit in Bali, Indonesia, Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, MAS and…
      Read more

      Singapore - Terrorism Financing National Risk Assessment 2020

      In 2020, Singapore conducted a Terrorism Financing (TF) National Risk Assessment (NRA). The TF NRA was the culmination of knowledge…
      Read more

      Regulatory Compliance Updates October 2022 – APAC Region

      31 October 2022 - ID 14/22 Mitigating Measures against Fraud Incidents that involve Fraudsters Masquerading as Captive Insurers This informs…
      Read more

      Regulatory Compliance Updates September 2022 – APAC Region

      If you have any questions about the below updates, please reach out to our APAC compliance team for more information.…
      Read more

      Enhancing Anti Money Laundering and Countering the Financing of Terrorism (AML/CFT) controls within the VCC sector

      The VCC regime was launched in Singapore in January 2020, and in 2021, MAS conducted an industry-wide survey of VCCs,…
      Read more