Emerging Tech Startups - Singapore Landscape Report slide image

Emerging Tech Startups - Singapore Landscape Report

Our Outlook for 2023 and Beyond Verticals Overall Outlook Sub-verticals Sub-vertical Outlook Advanced Manufacturing Pipeline and investor interest in hardware startups seems to be fading, possibly tied to the global weakening in manufacturing activities. Additive Manufacturing Advanced Materials Automation Sensors and Electronics Space Tech Agritech Agrifood Growing space due to Singapore's "30 by 30" initiative, but unit economics and scaling up remains largely uncharted. Alternative Proteins Food Tech Sustainability Health and Biomedical Sciences Regulatory and public pressure will make sustainability technology more relevant than ever. We are optimistic in the growth of this vertical. Confluence of ageing population, chronic disease, pandemic vigilance and rising affluence bodes well for continued relevance and investor interest. Decarbonisation Resource Optimisation Sustainable Materials Medical Devices Diagnostics Platform Tech Therapeutics Promise of "mass customisation" is alluring, but the challenges still lie in finding the right use cases beyond dentistry. Singapore maintains strong academic thought leadership in research for graphene and other advanced materials, but identifying the right market fit and scaling up remains an issue for startups. Robotics that can help improve productivity and safety in Maintenance, Repair and Overhaul (MRO) will continue to draw interest given rising labour costs and recovering demand in select sectors (e.g. aviation, construction, F&B). Given the benefits of Microelectromechanical systems (MEMS) and its diverse applications, this is an area to track as Singapore invests more resources to strengthen capabilities in the space. Still a very nascent area for Singapore, but commercial interest should grow as the low orbit economy starts to mature in the coming years. Farming operations are CAPEX heavy, and most startups may be better served outside the VC funding model. Significant investments have already been made in Singapore in fields of technology critical to the production of alternative proteins, such as precision fermentation. Growing demand for alternative and cell-cultivated proteins continues to provide commercial opportunities for startups focused on factors of manufacturing for these products. With increased consumer emphasis on health and wellness, functional food ingredients and healthier substitutes will be key to helping food producers meet nutritional targets, expand product offerings, and meet carbon targets. Continued innovation in this space is critical to meeting Singapore's 30 by 30 goals. Singapore's national strategy to shift half of our energy production to low-carbon hydrogen by 2050 will continue to be a crucial driver for the growth of startups developing more efficient and low-cost technologies to produce, distribute and use this fuel. Singapore has existing strengths in Water and Membrane Tech. Investors can be cautiously optimistic about commercial opportunities arising from the application of these technologies to non-water-related areas. Stricter regulations and consumer pressure around the use of single-use packaging and petroleum-based plastics are fuelling a growing demand for more sustainable alternatives (e.g. non-animal leather, bio-plastics). We see this as an increasingly crowded space, with strong differentiation required to break through on the international stage. Devices addressing "home care", "remote care", and caregiving efficiency will be increasingly relevant as the world's population ages at a faster pace. Post-COVID, we expect interest to cool off for the time being. Indeed, no new incorporations were observed in 2022. Singapore's strength in biomedical research will continue to generate a good pipeline of investible assets. 14
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