Singapore’s tech startups saw dramatic funding decline in 2024

SINGAPORE: In 2024, Singapore’s tech startups raised $2.1 billion, marking a substantial 56% decline from the $4.8 billion secured in 2023 and a steep 74% drop from the $8.1 billion raised in 2022, according to recent data from Tracxn.

Despite this decline, Singapore retained its position as the 11th highest-funded country globally, surpassing other tech ecosystems such as Japan and Australia. However, the overall drop in funding paints a picture of a challenging year for Singapore’s tech sector.

Tracxn’s data revealed a marked decline across all stages of funding, with late-stage investments experiencing the most significant drop. These investments fell by a staggering 74.7%, plummeting to $708 million in 2024 from $2.8 billion in the previous year. Seed-stage investments also faced a sharp reduction, falling by 50.6% to $310 million, while early-stage funding saw a more modest decrease of 15.4%, totaling $1.1 billion.

In terms of sector-specific funding, FinTech continued to dominate, securing $1 billion in 2024. However, even this leading industry saw a 15% drop compared to 2023 and a significant 71% decline from the record high of 2022.

The High Tech sector was the only area to show growth, with funding increasing by 4% to $884 million, although this figure remained 67% lower than the levels seen in 2022. Meanwhile, investments in Enterprise Applications declined by 29%, totaling $597 million in 2024.

Despite the challenges, Singapore’s tech funding landscape remained concentrated within the city-state, with 100% of the investments going to local companies.

On the global stage, Singapore’s $2.1 billion in funding ranked it 11th worldwide, trailing far behind leading countries such as the United States ($155.9 billion), United Kingdom ($14.0 billion), China ($11.8 billion), and India ($11.6 billion).