Singapore ranked first across SEA for funding for women-led tech startups despite massive 72% decline

SINGAPORE: Women-led tech startups in Singapore secured $114 million in funding in 2024, making it the highest-funded city for female entrepreneurs in Southeast Asia, according to a report by Tracxn. However, this figure represents a steep 72% decline from 2023, highlighting a challenging year for female-led ventures in the region.

The report pointed to a significant downturn in funding for women-led startups across Southeast Asia. Total investments plummeted by 65% to $198 million in 2024, accounting for just 6% of the $3.09 billion raised in the region’s broader tech ecosystem. Analysts attribute the decline to reduced late-stage funding and shifting investor priorities towards profitability.

Singapore’s early-stage funding saw a substantial drop, declining 39% year-over-year from $190 million in 2023 to $115 million in 2024. However, there was a silver lining in seed-stage investments, which rose by 20% to $82.9 million, although still 30% below 2022 levels. The most striking trend was the complete absence of late-stage funding for women-led startups in 2024.

This is in sharp contrast to the $311 million raised in late-stage rounds the previous year, underscoring the difficulties in scaling female-led ventures in the current investment climate.

Among different tech sectors, blockchain startups stood out, securing $133 million in funding—a staggering 391% increase from 2023. This growth came even as traditionally dominant sectors like FinTech and Enterprise Applications faced steep declines. FinTech startups raised $91 million, marking a 79% year-over-year drop, while Enterprise Applications funding plunged by 74% to $60.6 million, reflecting weakened investor confidence in the sector.

Despite the overall funding slowdown, Singapore remains the most attractive hub for women-led startups in Southeast Asia. Key investors such as Antler, Wavemaker Impact, Vertex Ventures, and SEEDS Capital continued to provide critical support to early-stage startups.

Additionally, acquisitions of women-led startups in Singapore doubled to six in 2024, indicating sustained interest in female-led businesses. However, no initial public offerings (IPOs) were recorded for the second consecutive year, reflecting ongoing challenges in achieving large-scale exits.

While the sharp drop in overall funding underscores a tougher fundraising environment, Singapore’s continued leadership in the region signals strong investor confidence in the city’s female entrepreneurs. The resilience of early-stage funding and increased acquisitions suggest that women-led startups continue to attract attention, even amid economic headwinds.

With investors shifting focus to profitability and later-stage funding drying up, women-led startups may need to explore alternative financing strategies or prioritize sustainable growth models to thrive in the evolving tech landscape.