Singapore Start-Ups to “Seek More Funding” in 2019
Singapore remains one of the best destinations worldwide in which to set up business. This is due to its government support in offering funds, its robust intellectual protection laws, its strategic geographical position, and its availability for a big market and labor force, to mention a few advantages.
Increased canvassing for Venture capital
It is expected that local start-ups will take soliciting and hunting for venture capital (VC) funding a notch higher in 2019 to facilitate their expansion, both regionally and globally. The heightened search for more funding will follow the mobilization of funds, which has been happening for the past several years, intended to build businesses for the Singapore market or as models for bigger companies in the future.
More funds for expansion
The companies are going to aggressively seek extra funding for expansion into other Asian countries where they have no foothold, as well as in the lucrative and expansive markets of the West (the US, UK, and continental Europe), China, and Japan. Such expansion calls for substantial amounts of funds, with their primary purposes usually being to access the market and acquire clients.
More VCs and regrouping of funds expected
There is also the chance of more early-stage corporate venture capital funds being launched in the year as well as the regrouping of funds, with the main focus being later-stage deals. In analyzing the performance of VCs in recent times, in the fourth quarter of 2017 Singapore managed 17 VC deals that totaled 205 million USD (271 million SD). This was a 57.2% increase from the previous year, as indicated by a report by KPMG. The report further showed that despite the deal falling by 41.4% compared to the last quarter, the deal value went up by about 40%.
In the whole of 2017, Singapore had 112 deals that yielded 1.2 billion USD.The best performance was in the second quarter, which put 724.3 USD into 33 deals. Also, 2017 had eight exits, which generated a total of 1.6 billion USD, and seven funds whose aggregate amount raised was 732.9 million USD.
Numbers indicate good signs
The figures from 2017 show a robust appetite for investment and favorable returns-on-investments, which are expected to continue spurring the progression of the Singapore business environment. With such good prospects, you cannot go wrong considering setting up a business in Singapore. The process of establishing an enterprise is relatively straight forward; to start the visa application process, you can engage the assistance of a reliable agent, easily reachable at one-visa.com, so you can enter Singapore to make the necessary arrangements.
Technology will encourage investment
The employment of relevant, innovative technologies—such as block chain, artificial intelligence, and machine learning—to the different sectors and industries will be the central focus for investors. It will keep investments high, even with some slight drops or stagnation in several industries. This also explains why the biggest share of investment will still go to the technology sector.