Where Are All the Singapore Unicorns?

Where Are All the Singapore Unicorns?

Singapore, a global financial hub and leader in innovation has made great progress in building startups. With strong government support, world-class infrastructure, and access to funding, one might expect the country to have many unicorns — startups valued at over $1 billion. Yet, Singapore’s unicorn landscape is relatively small compared to global counterparts like the United States or China.

In this blog post, Rodller will explore where all the Singapore unicorns are, and what is influencing this ecosystem.

The Rise of Unicorns in Singapore

Singapore is home to several well-known unicorns, such as Grab, Sea Group, and PatSnap. These companies are known for their rapid growth and innovative solutions. Grab, which began as a ride-hailing app, has become a super app offering services like food delivery and digital payments. Sea Group, listed on the New York Stock Exchange, has transformed e-commerce and gaming in Southeast Asia.

Other unicorns include Lazada, a leading e-commerce platform, and Trax, which uses AI and computer vision for retail. While Singapore’s unicorns have achieved major milestones, their success often depends on regional and global markets rather than the domestic market alone.

However, compared to tech giants from Silicon Valley or China, Singapore’s unicorn count is smaller. According to CB Insights, Singapore had about 11 unicorns as of early 2024. In contrast, the U.S. has over 600 unicorns, while China has more than 300. This difference raises questions about the challenges and opportunities for startups in Singapore.

Why Are Unicorns Scarce in Singapore?

Several factors affect the unicorn ecosystem in Singapore:

  1. Market Size: Singapore is a small country with just over 5.5 million people. Startups must expand regionally or globally to achieve unicorn status, which can be difficult. Neighboring countries in Southeast Asia offer larger markets, but entering these markets requires addressing cultural and regulatory challenges.
  2. Risk Preferences: Investors in Singapore tend to be cautious. While there is plenty of funding for startups, scaling a company to a billion-dollar valuation often requires riskier investments. Many investors prefer stable returns over high-risk ventures, which can limit the growth of startups with unicorn potential.
  3. Focus on Sustainable Growth: Singapore encourages building businesses with steady growth and profitability. Many startups prioritize these goals over aggressive scaling, which may delay or prevent unicorn valuations. This careful approach often leads to solid businesses but fewer unicorns.
  4. Type of Industries: Singapore’s startups often work in niche markets, such as financial technology, deep tech, and enterprise solutions. While impactful, these sectors may take longer to grow to unicorn status compared to consumer tech, which benefits from fast user adoption.

The Role of Government

The Singapore government plays an important role in supporting the startup ecosystem. Initiatives like Startup SG, the Economic Development Board (EDB), and Enterprise Singapore. provide funding, mentorship, and resources to entrepreneurs. Regulatory sandboxes encourage innovation, particularly in fintech and blockchain technologies.

The government also invests heavily in research and development (R&D) through institutions like A*STAR and partnerships with universities. This focus on innovation has made Singapore a leader in fields like artificial intelligence, biotechnology, and green technology.

Despite these efforts, some argue that government involvement might unintentionally reduce the risk-taking needed for unicorn growth. Strict regulations and a focus on compliance can sometimes slow down disruptive innovation. For instance, while regulatory sandboxes provide a safe space for testing, navigating these frameworks can take time.

Access to talents

Access to Talent

Singapore’s pool of educated and skilled workers is small. Startups often compete with multinational corporations for top talent, which can increase costs. Some founders also face challenges hiring international talent due to visa restrictions and policies that prioritize local workers.

To address this, Singapore has introduced initiatives like Tech.Pass to attract global tech experts and entrepreneurs. The government also promotes skill development through programs like SkillsFuture, which helps locals gain in-demand skills. While these efforts are useful, building a steady talent pipeline takes time.

Startups benefit from Singapore’s strong universities, which produce graduates skilled in science, technology, engineering, and mathematics (STEM). However, keeping this talent in the startup ecosystem is a challenge, as many graduates prefer the stability of corporate jobs.

Regional Competition

Southeast Asia is a fast-growing region with emerging markets like Indonesia, Vietnam, and Thailand. While Singapore serves as a gateway to these markets, startups must deal with cultural, regulatory, and operational differences to grow successfully. This can be a major obstacle for founders who lack local expertise or networks.

Indonesia, with its population of over 270 million, has become a hotspot for unicorns. Companies like Gojek and Tokopedia (now GoTo) have thrived by meeting local needs in large, untapped markets. Vietnam and the Philippines are also gaining attention with their growing middle-class populations and increasing internet use.

For Singapore startups, expanding regionally is often necessary rather than optional. Success in these markets requires understanding local consumer behavior, building strong local partnerships, and complying with complex regulations. While challenging, regional expansion offers growth opportunities for startups.

What Singapore Does Well

Despite challenges, Singapore offers unique benefits that make it a top place for innovation:

  1. Global Location: Singapore’s location makes it a natural hub for regional and global expansion. Its well-connected airports and ports support trade and international business.
  2. Support for Startups: The city-state has many accelerators, venture capital firms, and co-working spaces for startups. Organizations like SGInnovate and Block71 offer essential support for early-stage companies.
  3. Stable Environment: Political stability, strong legal systems, and low corruption make Singapore an attractive base for founders and investors. This stability is especially appealing compared to some neighboring countries.
  4. Digital Readiness: With one of the fastest internet speeds in the world and widespread tech adoption, Singapore is ideal for testing and growing digital solutions. The government’s Smart Nation program supports the country’s move toward advanced technologies.
  5. Access to Capital: Singapore is a global financial hub with a lively venture capital and private equity market. While risk preferences vary, the availability of funding is a major plus for startups.
Future trends for startups

Future Trends

Several trends could influence the growth of unicorns in Singapore:

  1. Advanced Technologies: Investments in artificial intelligence, quantum computing, and biotechnology could lead to unicorns in high-tech industries. Companies like PatSnap and Biofourmis show this potential.
  2. Green Technology: Startups focusing on sustainability are gaining attention. With global interest in addressing climate change, Singapore’s green tech initiatives could produce billion-dollar companies. Renewable energy and circular economy solutions are especially promising.
  3. Health Technology: The COVID-19 pandemic has increased innovation in healthcare. Singapore’s strong healthcare system and research facilities make it a leader in this sector. Startups working on telemedicine, health data analysis, and medical devices are well-positioned to grow.
  4. Web3 and Fintech: Singapore remains a hub for fintech innovation, with strong support for blockchain and digital finance. Companies like Crypto.com and Nium are already gaining traction.
  5. Education Technology: As remote learning becomes more common, education technology startups have many opportunities. Singapore’s focus on lifelong learning and skill-building aligns well with this trend.

What Needs to Change?

To produce more unicorns, Singapore needs to address certain challenges:

  1. Encourage Risk-Taking: Changing the mindset of investors and entrepreneurs to take more risks could lead to greater rewards. More acceptance of failure is needed to encourage groundbreaking ideas.
  2. Regional Collaboration: Building stronger connections with neighboring markets can help startups grow faster. Cross-border partnerships and sharing knowledge can make regional expansion easier.
  3. Improve Funding Options: While early-stage funding is readily available, more late-stage funding is needed to help startups grow. Encouraging global investors to invest in Singapore’s ecosystem can help.
  4. Develop Local Talent: Efforts to attract and keep talent must continue, with a focus on improving local skills. Partnerships between universities and startups can create paths for talent to enter the ecosystem.
  5. Promote Innovation: Supporting experimentation and highlighting success stories can inspire new entrepreneurs. Platforms that connect founders, investors, and experts can improve collaboration.

Final Thoughts…

At Rodller we stand that Singapore’s unicorn ecosystem reflects its unique strengths and challenges. While the country may not have as many unicorns as larger nations, its startups often set benchmarks for quality and sustainable growth. By addressing gaps and focusing on future opportunities, Singapore has the chance to increase its unicorn count in the years ahead. With its strong foundation and forward-thinking plans, Singapore is set to remain a global leader in innovation.

About Rodller

Rodller (www.rodller.com) provides Digital Marketing, Fundraising and Application Development Services. With offices in Singapore and France we serve both Startups and Fortune 2000 firms. We use a next generation Portal to combine the use cases of Digital Marketing, Fundraising and Application Development in tangible processes.

Vector

Leave a reply

Your email address will not be published. Required fields are marked *