Dr Lim Jui, CEO at SGInnovate
Of all the tech industries, the deep tech industry in Singapore has gathered a large amount of interest from the government in recent years. Earlier this year, the government announced a S$300 million (US$221 million) addition into Startup SG Equity as proof of its support for the deep tech scene.
There are many reasons for this excitement. One of them is because of the technology’s immense potential to solve real-world problems.
Dr Lim Jui, CEO at SGInnovate, defines deep tech as unique, cutting-edge technologies that demand a high degree of specialisation from both its inventors and practitioners. At a working level, it means technologies derived from relatively recent research with the potential for strong intellectual property (IP) protection
These are emerging technologies that could entail elements of AI, machine learning, and blockchain that have the potential to solve bigger issues surrounding the world. For example, medical devices or drugs that can increase lifespan, AI that can forecast natural disasters, or clean energy solutions that can help mitigate the risks of global warming.
“Let’s take Tesla and SpaceX in the US, and Creative Technologies in Singapore as examples. These companies have created industries where none existed before. That’s the power of Deep Tech. SGInnovate’s mission is to pave the way for the next generation of ‘Creatives’, ‘Teslas’, and ‘SpaceX’s’, creating high-growth, intellectually stimulating, and satisfying employment for our future generations,” Dr Lim says in an interview with e27.
Having spent most of his career in the business of innovation, Dr Jui says that he has seen firsthand how Singapore’s deep tech ecosystem has evolved.
“From research being licensed to foreign MNCs, to the emergence of digital startups addressing specific technological problems, to a vibrant community of startups spanning different areas of deep tech. There is now a much greater variety and depth in our startups, making for a richer ecosystem that has attracted more investors,” he explains.
Also Read: Beyond COVID-19: A new era for deep tech startups
While deep tech is a sector that has, over the past year, been largely funded by government organisations due to the volume of investment and risk involved, the tables have turned. Plenty of investors are now taking more interest in the technology.
Currently, SGInnovate has funded many deep tech startups. Some of which include digital therapeutics startup Biofourmis, wireless laser communications startup Transcelestial, and MedTech startup See-Mode Technologies.
To talk more about the state of deep tech in Singapore, Dr Jui shares insights into Singapore as a rising hub for this industry, the organisation’s initiatives to boost deep tech, investor perks, and more.
Why Singapore?
Singapore has all the key ingredients of success for deep tech growth – a strong education system with world-class universities, a robust pool of scientific and technical talent and thought leadership in medicine, finance, and engineering.
Add to this is a friendly business environment that has a track record of strong IP protection, and consistent leadership emphasis and financial support for the startup ecosystem, it is hard not to be bullish about Singapore’s deep tech prospects.
With the increasingly vibrant Singapore startup ecosystem, the overall investment climate and opportunities for deep tech in Singapore is set to grow in the future.
Also Read: National University of Singapore to spend US$18M to launch 250 deep-tech startups
Investing in deep tech
Deep tech investment is a high-risk, high-return endeavour. Traditional roadmaps for a business model or market conquest may not apply. And that’s on top of the technology risk and typically higher capital requirements.
So due diligence needs to be married with imagination. Yet, the history of science and technology has proven that those willing to take the plunge early will reap the biggest returns.
The best way to attract investors to invest in deep tech companies is to show them that you can do good and do well. You can make money from deep tech investments.
Just as an indication of the investment demand for Singapore deep tech startups, SGInnovate has invested about US$36 million (S$50 million) into about 70 Singapore deep tech startups over the last four years, and these companies have gone on to raise over US$479 million (S$650 million) in venture capital.
I believe we have largely succeeded in demonstrating that high returns can be generated, and we count on a strong and growing network of co-investors both locally and internationally.
It is also worthwhile to note that the Singaporean government is very supportive of investors in the deep tech field. The government had declared a US$221 million injection into Startup SG Equity for deep tech startups during its Budget 2020 announcement.
A career in deep tech for the non-techie
If someone has an interest in a deep tech career but is unsure about where to start, there are talent programmes that they can take part in, to gain the needed technical and industry skills for the deep tech industry.
Even if one comes from a non-STEM background, there are general tech roles (such as in software or UI/UX development) and other business-critical roles available within the industry.
Due to the nature of the technology, technical roles are always essential as they build their solutions and continue to maintain momentum in their technology development roadmaps. But as these startups mature, they will also need to build up their core business functions such as sales, marketing, operations, and legal.
Also Read: SOSV, 500 Startups invest US$2.55M seed round in deep tech startup SEPPURE
It is essential to adopt an entrepreneurial mindset which means always having an open mind to try new things, learning and up-skilling, as well as being flexible and adaptable during challenges.
Be ready to embrace failures, learn from it and restart again.
Upskilling workforce for Industry 4.0
Since the beginning of the pandemic, SGInnovate has been prioritising efforts around creating more deep tech job opportunities to support the community, working closely with partners and government agencies to explore new initiatives.
Some of SGInnovate’s initiatives for deep tech job seekers are:
Summation Apprenticeship Programme: A programme that matches top talent with deep tech startups with projects in emerging technologies such as AI, cybersecurity, IoT, robotics, quantum computing, and more
Infinity Series: A programme for undergraduates looking for roles in deep tech startups.
The New Frontier: A talent showcase in October which offered over 200 job openings in more than 30 startups and organisations.
Power X programme: A full-time traineeship programme for Singaporeans that blends classroom and workplace learning to equip them with skills for a new career in deep tech space.
Founded in 2016, SGInnovate is a private limited company wholly owned by the Singapore government; it aims to build and scale deep tech startups into high potential companies with global impact. Its Deep Tech Nexus Strategy is focussed on adding tangible value to the deep tech startup ecosystem in two key areas: development of Human Capital and deployment of Investment Capital.
SGInnovate seeks to back entrepreneurial scientists through equity-based investments, access to talent, and business-building advice.
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Image Credit: SGInnovate
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