Singapore has emerged as the leading city for startup innovation, overtaking San Francisco, according to HubSpot’s 2025 Hypergrowth Startup Index. The report, created in partnership with PitchBook, indicates a significant shift in the global startup landscape, with a new emphasis on sustainable business models over rapid expansion.
The report reveals that whilst the number of monthly deals has halved since 2021, the average deal size has increased by nearly 43%, from $35m in 2023 to $50m in 2024. This shift reflects investors’ growing preference for sustainable growth. Laurence Butler, Head of HubSpot for Startups, noted, “Companies that focus on building strong customer relationships from day one are outperforming those that prioritise rapid scaling above all else.”
Traditional sectors are also showing robust growth, with the energy sector leading at a 37% growth rate, slightly ahead of IT at 36%. Meanwhile, mergers and acquisitions have become the dominant exit strategy, accounting for 43% of exits, compared to just 6% for initial public offerings.
Singapore’s rise as a startup hub is part of a broader trend, with Asia becoming a new epicentre for innovation. The report underscores the importance of strategic partnerships, with joint ventures averaging $9.9b in deal size, significantly larger than traditional buyouts.
As the startup ecosystem evolves, the focus on sustainable growth and strategic partnerships is expected to continue shaping the future landscape, positioning Singapore as a key player in global innovation.
“`
