According to findings presented in the Singapore Early-Stage Emerging Tech Startups 2023 landscape report released by SGInnovate in April 2024, investments into local technology startups have returned to pre-2021 levels despite muted funding conditions in 2022.
This is particularly seen in growth in Singapore’s Agrifood and Sustainability sectors.
Mr Hsien-Hui Tong, Executive Director for Investments at SGInnovate, said: “The trends we are seeing are an indication of the maturity and growing dynamism of Singapore’s emerging tech landscape, with more specialist investors coming in to support specific verticals.
Understanding the prospects of tech startups industry-wise
The 2023 edition of SGInnovate’s report showed that it could take up to three years to uncover most emerging tech startups incorporated in a given year, suggesting a higher level of ecosystem activity than initially discovered.
For instance, updated data in the current report has identified 93 emerging tech startup incorporations in 2021.
This prolonged discovery period may be attributed to a range of factors, such as founders’ preference to increase company visibility only after raising their first institutional funding round, or upon completing development of their minimum viable product.
In the realm of strike-offs, the report found that approximately 9% of the emerging tech startups incorporated between 2019 and 2023 have ceased operations, with many expected to face the most acute risk of strike-off from around their third-year post-incorporation – consistent with the additional 18 to 24 months of runway that a round of funding provides.
Among the various verticals studied, startups in the Health and Biomedical Sciences and Advanced Manufacturing verticals accounted for around 47% and 28% of all strike-offs, respectively, emphasising the ongoing challenges faced by both sectors.
What’s the long-term outlook for tech startups for 2024 and beyond?
Sustained high interest rates may have deterred investors in 2023, instead allocating funds to higher-yield alternatives that carried lower risk, such as government bonds, according to SGInnovate.
However, forecasted rate cuts in 2024 are expected to boost private market investments, with a renewed interest in emerging technologies.
“While challenges such as political uncertainty will continue to weigh on investment considerations globally, we are optimistic about startups addressing long-term concerns supported by policy initiatives in Singapore,” said Hsien-Hui.
“These include technologies in areas such as remote patient monitoring and stem cell therapy, which may provide solutions to enhance the care of Singapore’s ageing population or technologies that will aid Singapore’s continued efforts in decarbonisation, including battery recycling and sustainable materials production.”
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So, how do you evaluate if joining a startup fits your career goals?
Natalie Poon, the Chief People’s Office at Matchmove, shared with us that jobseekers considering roles at startups should be mindful to factor in these critical factors:
- The company’s mission
- Their funding
- Your team
- Your role
- What growth opportunities are there
- The work environment
- Your compensation
- Your risk tolerance.
She added: “An enjoyable startup work experience requires an adaptable, resilient mindset and open to learning and growth.
“Individuals should be comfortable with ambiguity and uncertainty and be willing to take calculated risks.
“A growth-oriented attitude, strong work ethic, and ability to wear multiple hats are essential.
“Additionally, a positive and flexible mindset can help navigate the fast-paced and ever-changing startup environment.
“By being aware of these factors and possessing the right mindset, jobseekers can thrive in a startup setting and make valuable contributions to the company’s success.”
The skillsets needed for success in a startup setting also differ from roles in more traditional corporate environments.
Natalie believes a successful startup and enjoyable work experience requires an adaptable, resilient mindset and is open to learning and growth.
Individuals should be comfortable with ambiguity and uncertainty and be willing to take calculated risks.
A growth-oriented attitude, strong work ethic, and ability to wear multiple hats are essential.
Additionally, a positive and flexible mindset can help navigate the fast-paced and ever-changing startup environment.
“By being aware of these factors and possessing the right mindset, jobseekers can thrive in a startup setting and make valuable contributions to the company’s success,” she concluded.
If joining a fintech startup interests you…
You can also get more information from the Monetary Authority of Singapore (MAS’s) online Talent Pavilion, that showcases the resources and capabilities available to support individuals’ various Fintech journeys. It highlights an array of events, job opportunities, and upskilling courses.
Co-sponsored by Workforce Singapore (WSG), you can partake in a variety of FinTech talent-related activities such as:
- Educational workshops on useful FinTech skills, industry networking sessions at the Talent Pavilion Booth at the Singapore FinTech Festival
- Professional reskilling and upskilling courses
- Seek career support with professional career coaches and mentors
- Find institutions that provide advanced learning in the FinTech space
- Apply for grants to support career conversion and training
- Explore job and internship opportunities
This article was done in collaboration with Monetary Authority of Singapore’s FinTech & Innovation Group.
