State of Singapore
Startups 2026
A data-driven look at incorporation trends, VC funding, sector growth, talent dynamics, and government support in Southeast Asia's leading startup hub.
Table of Contents
Key findings at a glance
Six headline findings from Singapore's startup ecosystem in 2025-2026. Detailed data and analysis follows in each section below.
75,000+ companies registered in Singapore in 2024
ACRA processes over 75,000 new company registrations annually, with private limited companies (Pte Ltd) accounting for roughly 65% of new formations. The volume has grown 8-12% year-on-year since 2021, driven by strong inbound interest from Indian, Southeast Asian, and Middle Eastern founders.
~40% of new tech companies have at least one foreign founder
Singapore's open incorporation policy - 100% foreign ownership permitted, no minimum capital beyond S$1 - has made it the default jurisdiction for Southeast Asian and international founders seeking a trusted legal base. India, China, Indonesia, and the US are the top source countries. This trend has accelerated since 2022 as US tariffs and geopolitical uncertainty drove more founders to Singapore as a neutral hub.
S$4–6B in annual VC investment, recovering after 2022-23 peak correction
Singapore VC investment peaked at approximately S$13-14B in 2021-2022, then corrected sharply to S$4-6B in 2023-2025 as global interest rates rose and the growth-at-all-costs era ended. Early signs of recovery emerged in H2 2025 as AI investment resumed and Southeast Asian consumer internet valuations stabilised. Deal count fell less than deal value - more smaller rounds, fewer mega-rounds.
AI & fintech dominate deal flow; deep tech growing fastest
Fintech remains the largest sector by cumulative funding but AI-native startups captured the most new capital raised in 2024-2025. Deep tech (semiconductors, biotech, climate tech) is growing fastest by deal count as government grants (under Startup SG Deep Tech) increasingly de-risk early-stage investment. Southeast Asian consumer tech has largely shifted to Series B+ rounds as early-stage opportunities move earlier.
200,000+ Employment Pass holders support the talent ecosystem
Singapore's tech talent base is deeply international. Over 200,000 Employment Pass holders work in Singapore, with tech roles in software engineering, data science, and product management making up the fastest-growing categories. The 2023 COMPASS framework has raised baseline quality standards, resulting in a modest decline in EP approvals but a meaningful improvement in EP-holder quality and retention.
S$80K+ in accessible grants for qualifying early-stage startups
Government support remains a significant differentiator for Singapore. A qualifying early-stage startup can access S$50K in co-matched funding (Startup SG Founder), S$30K equity-free grants (Startup SG Tech), and eligibility for MAS regulatory sandbox access - all before raising a single dollar of venture capital. The total available grant envelope for pre-Series A startups exceeds S$500K when combining all available schemes.
Incorporation trends: who is setting up in Singapore?
ACRA's register reflects a startup ecosystem that is genuinely global. The top origin countries of foreign-founded Singapore companies tell a story of shifting economic gravity toward Asia.
Top source countries — foreign founders (2025 est.)
Source: EDB, Enterprise SG estimates; Karman client data 2024-2025
Why founders choose Singapore over alternatives
Source: Karman founder survey pilot (n=47, Q1 2026)
Pre-pandemic baseline
~50,000-55,000 new companies/year. Majority Singapore-resident founders. Foreign-founded company share below 25%.
Post-COVID surge
New registrations spike as remote work enables founders to incorporate globally. VC funding peaks at S$13-14B. Indian and US founders begin "Singapore flip" at scale. ACRA processes record volumes.
COMPASS reform + rate correction
MOM introduces COMPASS framework for Employment Pass applications. VC deal value drops ~50%. Foreign-founded company share reaches ~35-40% as geopolitical drivers (US-China tension, Gulf diversification, India flip trend) sustain inbound incorporation.
AI wave + tariff tailwind
US tariff uncertainty drives supply chain restructuring via Singapore. AI-native startups accelerate. Gulf family offices establish Singapore VCCs. Annual registration volume stabilises at 70,000-75,000.
Current state
Singapore firmly established as #1 Asian startup hub. Competition from UAE/Dubai increasing for Middle Eastern founders. Hong Kong slowly recovering. Singapore's rule of law, talent pipeline, and 90+ DTAAs remain durable advantages.
VC funding landscape 2024-2025
After the 2021-2022 peak and subsequent correction, Singapore's VC market has stabilised at a healthier but smaller level. Early indicators suggest a recovery cycle beginning in H2 2025.
Annual VC investment — Singapore (S$B)
Source: EDB Investment Report, MAS Capital Markets Review, KPMG Venture Pulse
Top sectors by deal value (2024-2025)
Source: DealStreetAsia, Tracxn, Crunchbase Singapore data
Notable shift: Early-stage deal count (seed and pre-seed) has held up better than deal value throughout the 2023-2025 correction. Singapore saw more seed rounds in 2024 than in any prior year, reflecting a maturing angel and micro-VC ecosystem. The correction was concentrated in Series B+ where growth-stage multiples compressed most sharply.
Sector breakdown: where founders are building
Singapore's startup ecosystem has evolved from a fintech-and-ecommerce base to a more diversified mix. Here is where founders are concentrating in 2025-2026.
Payments, wealth tech, insurtech, and crypto remain the largest category by funding. MAS regulatory sandbox and Project Guardian (tokenisation) make Singapore the #1 fintech base in Asia.
Fastest-growing new category. Enterprise AI, AI infrastructure, and AI-enabled SaaS. Singapore's neutrality makes it attractive for global AI companies requiring non-US/non-China infrastructure.
Semiconductors (linked to TSMC and Micron investments), biotech, and agritech. Government grants through Startup SG Deep Tech significantly de-risk early-stage bets. Growing fastest by deal count.
Telemedicine, medical devices, digital therapeutics, and hospital operations software targeting SEA's 680M people and underdeveloped public healthcare systems. Strong post-COVID tailwinds.
Carbon markets, green financing, sustainable supply chain, and climate data. Singapore's Green Plan 2030 and mandatory ESG reporting (for listed companies) are catalysing this sector.
Cross-border commerce, social commerce, and last-mile logistics. Shopee/Sea Group's flywheel continues to attract ecosystem companies. US tariff disruption is reshaping supply chain setups through Singapore.
Talent and Employment Pass
Singapore's Employment Pass framework is the backbone of its tech talent strategy. The 2023 COMPASS reform shifted from a binary approval/rejection system to a points-based assessment that rewards higher salary, better qualifications, and workforce diversity.
Employment Pass — key numbers (2025)
Source: MOM Annual Employment Report 2025
Top nationalities of new EP holders (2024)
Source: MOM Employment Situation 2024
COMPASS impact: Approval rates for EP applications have tightened since COMPASS launched in September 2023, but rejection rates remain low for well-qualified candidates. The framework has effectively shifted the market toward higher-salary, better-credentialed hires. Founders applying for their own EP should use our free EP COMPASS Calculator to assess their score before applying.
Government grants and incentives
Singapore's government support framework is one of the most comprehensive in the world for early-stage companies. The grants below are the most relevant for technology startups.
| Grant / Scheme | Who it's for | Quantum | Key conditions |
|---|---|---|---|
| Startup SG Founder | First-time Singapore-based founders | S$50,000 co-match | Must raise S$10,000 from an Accredited Mentor Partner. Available once per founder. Must have less than 6 months' operations. |
| Startup SG Tech (formerly iSPRINT) | Tech startups with innovative solutions | Up to S$250,000 | Co-funding for Proof-of-Concept and Proof-of-Value projects. Requires IHL or research institute partnership for POC grants. |
| Startup SG Deep Tech | Deep tech startups (biotech, semiconductor, cleantech) | Up to S$2,000,000+ | Co-investment scheme. Requires IP ownership or exclusive licence. Matched by investor funding. |
| Enterprise Development Grant | SMEs (including startups past early stage) | Up to 50% of qualifying costs | Covers innovation, productivity, capability development. Up to 70% for some categories. Applied via Enterprise Singapore. |
| MAS FinTech Grant | MAS-regulated / fintech companies | Various (up to 50% of project cost) | Supports RegTech, supervisory tech, and financial inclusion projects. Applied via MAS Financial Centre Development Fund. |
| Global Innovation Alliance | Startups expanding internationally | Up to S$30,000 per market | Supports market entry into key innovation hubs (US, EU, China, India). Co-funded immersion programmes. |
Grant stacking note: Many of these grants can be combined. A deep tech startup can simultaneously access Startup SG Founder (S$50K), Startup SG Tech (S$250K), and an EDG grant. The total accessible funding before Series A can exceed S$500K for qualifying companies. Grant applications take 4-12 weeks; Karman can advise on eligibility and applications.
Tax environment for startups
Singapore's corporate tax structure is one of the most startup-friendly in the world. Below are the key numbers every founder should know.
Startup Tax Exemption — effective rates
Singapore vs peer jurisdictions
Source: KPMG Corporate Tax Rate Survey 2025. Singapore effective rate with startup exemptions shown.
Singapore also levies zero capital gains tax on shares, property sold by companies, and most asset classes - making exit proceeds fully available to founders and investors. The one-tier dividend system means corporate profits distributed to shareholders are not taxed again at the individual level. Use our Startup Tax Projection tool to model your specific tax position.
Outlook for 2026-2027
Five trends that will shape Singapore's startup ecosystem over the next 18-24 months.
AI infrastructure build-out
Singapore's data center expansion (Google, Microsoft, AWS all growing Singapore footprints) positions it as the AI compute base for Southeast Asia. Expect more AI-infrastructure and AI-applied-to-regulated-industry startups (finance, healthcare, logistics).
Family office and VCC growth
Gulf and Indian family offices continue establishing Singapore as their primary base. Variable Capital Company (VCC) structures - Singapore's purpose-built fund vehicle - are growing rapidly. MAS reported over 1,000 VCCs registered by end 2025, up from 300 in 2022. This trend is expected to continue as wealth preservation and succession planning drive fund formation.
Supply chain restructuring via Singapore
US tariffs on China and other manufacturing nations are accelerating Singapore's role as a neutral trading hub. More companies are establishing Singapore entities to manage global procurement, invoicing, and logistics - particularly in electronics, precision manufacturing, and consumer goods sectors.
Climate finance and carbon markets
Singapore's Climate Impact X (the carbon exchange) and mandatory ESG disclosures for listed companies from 2025 are creating a pipeline of climate finance and sustainability tech startups. Singapore is positioning as the primary carbon market for Southeast Asia, a region with significant offset supply from Indonesia, Malaysia, and Vietnam.
Risk to watch: UAE competition
Dubai and Abu Dhabi have made significant gains as startup hubs, particularly for Gulf-region founders and crypto-native businesses. The UAE's 9% corporate tax (with free zone exemptions effectively at 0% for many setups), Golden Visa programme, and fast-growing VC ecosystem are genuine alternatives to Singapore for founders from the Middle East, Central Asia, and parts of Africa. Singapore's rule of law, DTAA network, and talent depth remain durable differentiators, but the competitive gap is narrowing for certain founder profiles.
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Data sources and methodology
This report draws on publicly available data from the Economic Development Board (EDB), Enterprise Singapore, Monetary Authority of Singapore (MAS), Ministry of Manpower (MOM), ACRA, DealStreetAsia, KPMG Venture Pulse, Crunchbase, and Tracxn. Where exact figures are not publicly disclosed, ranges and estimates are used and clearly marked. Karman client data (anonymised, n=~200 incorporations 2024-2025) supplements sector and origin-country estimates. All figures are in Singapore Dollars unless stated otherwise. This report is updated annually; last updated May 2026.
Setting up or expanding your Singapore entity?
Karman is an ACRA-registered filing agent handling incorporation, VCC fund administration, corporate secretary, accounting, GST, and Employment Pass applications. Most incorporations are approved within 1-3 days.