Why startups love Singapore

At Olofsson & Company, we enjoy sharing startup news on our LinkedIn feed. We keep our finger on the industry pulse due the nature of our work (we’re an executive search firm dedicated to the tech and startup world, after all) but this belies the fact that the industry is such a vibrant and exciting one.?

Almost every day, there’s news of a successful funding round; of another startup ready to take flight. Much of this happens in Singapore, where we are headquartered. In 2019, travel blogger Nuseir Yassin, popularly known as Nas of Nas Daily fame, moved to Singapore.?

"There are many reasons why I chose Singapore over other places. But mainly due to my belief that this part of Asia might be the new America. Singapore is the world’s most expensive city, but I also think it’s the world’s best place for our purposes: to live and to build up the Nas Daily Media Company," he declared on Instagram.?

Singapore is known to be Asia’s most competitive country1 and the second easiest place in the world to do business2. The country has a remarkable track record in building flourishing industries — from advanced manufacturing to financial services and now, innovation. Roger Olofsson, Managing Director of Olofsson & Company, believes this started in earnest less than 10 years ago.?

“For me, the pivotal moment in the local startup scene was around 2015 when Temasek Holdings invested close to $100 million in four venture capital firms —?NSI Ventures (also known as Openspace Ventures), Monk's Hill Ventures, Jungle Ventures and Golden Gate Ventures. It was a strong signal from the government, via its state holding company, that innovation was the future,” he shared.?

“Singapore has achieved a delicate balance between strong government support and private sector freedom, which I believe would be hard to replicate anywhere else in the world.”?

The Singapore way?

The startup arena is a natural playground for Singapore, already known as one of the most innovative cities in the world. Its famed business infrastructure, including the ease of doing business and a strong intellectual property regime, has enabled the city-state to prosper economically for the past few decades. This creates a reliable backdrop for all businesses, startups included, but there’s more.?

SGInnovate, a government entity, was founded with the express purpose of launching and scaling deep tech products. It does so in three ways — by investing in startups, nurturing the next generation of innovators, and bringing the startup community together to share and inspire new ideas. There’s also Action Community for Entrepreneurship (ACE), a non-profit trade association that self-identifies as the “national voice for the startup ecosystem”. ACE currently has more than 2,000 members, representing over 1,300 startups.

What these organisations do, with the blessing of the Singapore government, is to advocate and enable progress in the startup scene. It is supported by academia, too, with both the National University of Singapore and Nanyang Technological University housing incubation programmes that bridge theory and practice.?

Overall, this creates a welcoming and attractive environment not only for startups, but also for the broader ecosystem of venture capital firms, incubators, and accelerators.?

Access to funding is a lifeline for startups and a key ingredient to Singapore’s success as a startup haven. Some of the world’s largest venture capital firms are now present here, playing alongside homegrown ones like Singtel Innov8, which is the venture capital arm of telecommunications group Singtel with a fund size of US$250 million.?

Newer players are also choosing Singapore as their base, adding to the vibrancy and diversity of the scene. Cocoon Capital, founded in 2016 by seasoned investors William Klippgen and Michael Blakey, comes to mind. The firm funds and mentors Southeast Asian companies from seed to Series A — and chose to set up shop here.?

Budding entrepreneurs and seed-stage startups also have support from Antler, a global early-stage venture capital firm that “invests in founders from day minus one”. Founded in Singapore with 20+ global offices to its name now, Antler brings entrepreneurs together to build co-founder teams and supports them with business model validation and a global platform for scaling.?

The talent challenge?

Singapore has clearly set the stage for startups to shine but the path to greatness is still fraught with challenges, particularly given the intense competition for talent today.?

“For startups, especially early-stage ones, the talent challenge is two-fold: it’s about identifying good talent and ensuring that they are a good fit. When the team is small, every member counts. Having worked extensively with founders, we know that building the right core team can make or break a startup,” said Mr Olofsson.?

If you’re a startup looking to grow, let us share our experience and expertise with you. Leave us a comment and we’ll be in touch!?

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1 International Management Development (IMD) World Competitiveness Ranking 2021

2?The World Bank Ease of Doing Business Rank, 2019