- Singapore invests big in depth.
- Startups face talent shortages and funding challenges.
- Global expansion necessary but risks ecosystem growth.
Singapore’s S$300 million commitment to deeptech development in 2020 has led to nearly US$1 billion invested in the sector.
However, the city-state now grapples executing its ambitious plans. Data from SGInnovate reveals that approximately 10% of companies incorporated between 2019 and 2023 have closed shop, indicating significant challenges in the ecosystem.
Talent crunch and funding woes
The deeptech sector faces a pronounced talent shortage, competing for a limited pool of specialized scientists and researchers.
This scarcity has led to high-profile exits, such as Entrepreneur First’s departure in 2022.
Additionally, the “valley of death” phenomenon plagues many startups, struggling to translate research into viable products before securing funding.
Going global: a necessary evil?
Enterprise Singapore acknowledges that the city-state’s small market often necessitates startups to expand beyond its borders.
This strategy, though beneficial for individual companies, presents a dilemma for the ecosystem’s maturation.
The challenge lies in retaining talent and companies to foster a robust local deeptech environment.
To read the original article: https://www.techinasia.com/hurdles-dent-singapores-deeptech-ambitions-blueprint-takes-shape
