S'pore to invest another $440m to boost deep tech start-up growth

This expands govt funding under scheme that backs such start-ups to over $1 billion

- Timothy Goh

Singapore will invest another $440 million to attract more venture capital firms to invest in local deep tech start-ups.

The top-up will go to the Startup SG Equity scheme run by Enterprise Singapore and the Economic Development Board (EDB). This expands the total amount of government funding under the scheme to over $1 billion.

Under the scheme, which was established in 2017, the Government collaborates with private-sector investors to back innovative and Singapore-based deep tech start-ups capable of scaling internationally.

Deep tech start-ups refer to those which provide high-tech innovation in engineering, or are based on significant scientific advances.

To support the development of more early to early-growth-stage deep tech start-ups, the cap on total government equity has also been increased from $8 million to $12 million for each start-up, said Deputy Prime Minister Heng Swee Keat on Oct 28.

He was speaking at the opening ceremony of Singapore Week of Innovation and Technology (Switch) 2024. The event is organised by Enterprise Singapore and is being held at Marina Bay Sands from Oct 28 to 30.

DPM Heng said deep tech ventures need "patient capital" with a longer timeline to mature, but Singapore is enhancing the capital market to better enable local and global start-ups to access capital for their growth and innovation.

"Singapore, as a global financial centre with more than $5.4 trillion of assets under management and more than 1,650 family offices, is well placed to do so," he added.

DPM Heng also noted that the Monetary Authority of Singapore has already formed a review group to strengthen the local equities market and provide an additional source of capital for start-ups.