Singapore-based startups secured US$397 million in Q3 2024, a 26 per cent decline from US$536 million raised in the corresponding quarter last year and a 9 per cent uptick over the previous quarter, according to Tracxn’s Geo Quarterly Report.
In Q3 (July 01 to September 30) 2024, late-stage investment rose 48 per cent to US$80 million from US$53.9 million in Q2 2024. Early-stage funding fell 8 per cent to US$237 million.
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On the other hand, seed-stage financing grew 56.5 per cent to US$80.3 million, driven by small-ticket rounds.
No US$100 million+ rounds were recorded in Q3 2024 in Singapore. No new unicorns emerged during the period, similar to the scenario in Q3 2023.
Fintech, enterprise applications, and retail were the top-performing sectors in Q3 2024.
Fintech raised US$208 million in Q3 2024, a 10 per cent drop over Q3 2023. The enterprise application segment funding rose 55 per cent to US$157 million in Q3 2024 from US$101 million in Q3 2023.
At the same time, the retail sector witnessed a massive 229 per cent increase in funding in Q3 this year to US$97 million in Q3 2024 from US$29.5 million in the corresponding quarter last year.
The number of acquisitions in Q3 saw a slight drop to 13 from 14 in the corresponding quarter last year. However, this is an upward move from six acquisitions in Q2 2024.
Only two Singapore tech startups have gone public this year so far, one each in Q1 and Q2 of 2024. Q3 did not witness any IPOs.
Also Read: Southeast Asia’s startup scene sees 59% drop in funding amid economic headwinds
Wavemaker Partners, Antler, and Entrepreneur First were the all-time top investors observed in Q3 2024. Antler, Orbit Startups, and East Ventures took the lead in seed-stage investments, while Peak XV Partners, SEEDS Capital, and Temasek were the top early-stage investors.
In Asia, Singapore’s tech startup ecosystem ranks fourth after China, India and Israel based on all-time funding to date. Singapore witnessed its peak startup funding in Q3 2021 (US$4.1 billion), after which a downward trend was observed. The decline can be attributed to a notable shift in investor interest due to global economic challenges, including macroeconomic conditions and geo-political issues.
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