Singapore’s tech ecosystem experienced a challenging year in 2024, with funding plummeting to $2.1b, a 56% decrease from the previous year’s $4.8b, according to Tracxn’s Annual Report. This marks a stark contrast to the $8.1b raised in 2022, highlighting a significant downturn in investment.
Late-stage funding saw the most dramatic decline, dropping 74.71% to $708m from $2.8b in 2023. Seed-stage investments also fell sharply by 50.6%, reaching £310 million, while early-stage funding experienced a smaller decline of 15.38%, totalling $1.1b.
Despite the overall decrease, certain sectors showed resilience. High Tech funding increased by 4% compared to 2023, although it still represented a 67% drop from 2022 levels. FinTech and Enterprise Applications sectors, however, saw funding decreases of 15% and 29% respectively compared to 2023.
The report also noted a reduction in major funding rounds, with only three exceeding $100m in 2024, down from seven in the previous year. Additionally, three tech companies went public, and the ecosystem saw the emergence of just one new unicorn.
Leading investors such as Wavemaker Partners, Peak XV Partners, and SEEDS Capital continued to support the ecosystem, despite the challenging environment. The year also recorded 39 mergers and acquisitions, with the most notable being PropertyGuru’s acquisition by EQT for $1.1b.
These figures underscore the evolving dynamics and challenges within Singapore’s tech landscape, as it navigates through a period of reduced funding and investment.
