Singapore Startups Update: February 2024
Introducing the latest developments in the Singapore startup scene for February 2024! From groundbreaking funding rounds to innovative grant initiatives, both startups and government bodies are driving significant progress across diverse industries. SGTech leads the charge with its new guide leveraging Generative Artificial Intelligence to empower SMEs, providing essential insights into harnessing the power of AI for business growth. Meanwhile, initiatives like the Overseas Markets Immersion Programme and the Heartland Enterprise Placemaking Grant offer exciting opportunities for startups to expand internationally and contribute to community development. Join us as we delve into the dynamic world of Singapore startups and explore the latest trends and advancements shaping the future of entrepreneurship in the region.
SGTech Launches Guide to Leverage GenAI for SMEs
SGTech has recently taken a significant stride in aiding the growth and efficiency of Small and Medium Enterprises (SMEs) by launching a comprehensive job and skills guide specifically tailored to leverage generative artificial intelligence (GenAI). Developed in collaboration with SkillsFuture Singapore and AI Singapore, this guide serves as a crucial resource for SMEs aiming to harness the power of GenAI within their business operations.
The guide covers a wide array of essential aspects, ranging from understanding the practical applications of GenAI in various business solutions to identifying the requisite technological talent profiles and skill sets necessary for its implementation. With a focus on providing actionable insights, it furnishes valuable resources aimed at assisting business owners in navigating the adoption process effectively, both for their businesses and their employees.
Highlighted within the guide are compelling use cases that illustrate the versatility and efficacy of GenAI across different domains. From customizing tests and conducting immersive interviews to ingesting and analyzing vast datasets to power conversational AI applications, GenAI emerges as a transformative force capable of revolutionizing traditional business processes.
Transforming Citizen Experiences: The Role of Conversational AI in Governance
Conversational AI (CAI) is reshaping the landscape of governance, offering a novel approach to enhancing citizen experiences. Despite Singapore's strong digital competitiveness, there's room for further advancement, especially in the widespread adoption of CAI across governmental departments. While initiatives like the Inland Revenue Authority's 'Ask Jamie' virtual assistant demonstrate its potential, broader integration is necessary to meet rising citizen expectations for convenience and efficiency.
The integration of CAI in the public sector addresses the challenge of efficiently managing inquiries from a diverse citizenry. With potentially millions of citizens to serve, handling individual complaints and queries manually is time-consuming and resource-intensive. By automating routine tasks and employing advanced bots, such as Dynamic AI agents, governments can streamline processes, allowing civil servants to focus on more pressing issues.
Furthermore, CAI solutions promise to personalize and simplify citizen experiences by automating repetitive tasks and processes. Standardized responses ensure instant, consistent, and accurate information delivery, reducing errors and misunderstandings. Dynamic AI agents can handle a wide range of tasks, from providing information to scheduling appointments, enhancing overall efficiency and trust in government services.
Overseas Markets Immersion Programme for Startup Expansion
Singapore companies with aspirations for international expansion now have a promising avenue for realizing their ambitions through the newly introduced Overseas Markets Immersion Programme. Announced by Minister for Manpower Tan See Leng, this initiative aims to provide financial support for employees undergoing training abroad, preparing them for pivotal global or regional roles within their organizations. Whether in technology, business development, or other domains, this programme offers invaluable on-the-job, in-market training to individuals with limited overseas market experience, equipping them with the necessary skills and insights to thrive in international settings.
By facilitating the development of a globally oriented workforce, the Overseas Markets Immersion Programme positions Singaporean businesses for success in competitive overseas markets. Minister Tan emphasizes the strategic importance of cultivating a strong talent pool capable of driving expansion and fostering competitiveness on a global scale. This initiative aligns with Singapore's broader efforts to bolster its presence in international markets and enhance its economic resilience amidst global uncertainties.
The introduction of the Overseas Markets Immersion Programme complements existing leadership development initiatives, such as the Global Business Leaders Programme (GBLP), unveiled by Minister for Trade and Industry Gan Kim Yong. These programmes collectively contribute to nurturing a robust cohort of Singaporean leaders equipped with the skills, networks, and global perspectives necessary to navigate complex international landscapes. As further details about these programmes emerge in the coming months, Singaporean companies can anticipate enhanced support and resources to facilitate their overseas expansion endeavors.
Four A*Star Initiatives for R&D Commercialization
The Agency for Science, Technology and Research (A*Star) is launching four pivotal initiatives to bolster the commercialization of research and development (R&D) in Singapore. Spearheaded by Second Minister for Trade and Industry Tan See Leng, these initiatives cover semiconductors, nucleic acid therapeutics, robotics, and medtech. The flagship among them is the S$180 million National Semiconductor Translation and Innovation Centre, which aims to lower entry barriers for companies and researchers by providing state-of-the-art facilities and infrastructure for semiconductor innovation.
In addition, the RIE 2025 plan allocates S$97 million to the Nucleic Acid Therapeutics Initiative, focusing on RNA drugs and vaccines. This initiative seeks to position Singapore as a regional hub for nucleic acid therapeutics research and commercialization, supporting local SMEs and startups while attracting international companies. Furthermore, the Medtech Catapult initiative, backed by a S$38 million investment, aims to accelerate the development of medical technologies by translating research into commercially viable products and nurturing local capabilities in product design and engineering. Together, these initiatives underscore Singapore's commitment to fostering innovation-driven economic growth and industrial transformation.
New Grant for 'Placemaking' Activities by Heartland Startups
Singapore's heartland businesses have an exciting opportunity to enhance their community presence through the newly introduced Heartland Enterprise Placemaking Grant. This initiative, unveiled by Minister of State for Trade and Industry Low Yen Ling during her ministry's Committee of Supply debate, aims to fund innovative placemaking activities such as community engagement initiatives, public art installations, workshops, and thematic festivals. Eligible businesses can receive funding of up to S$10,000 per project, covering up to half of the eligible costs for selected activities in the heartlands.
The grant, designed to revitalize and transform the heartlands, seeks to empower local businesses to create vibrant and engaging spaces for residents. To qualify, businesses must meet certain criteria, including having at least 30 percent local shareholding, a physical storefront in the heartlands, and an annual turnover not exceeding S$100 million. Operational costs and common activities like festive light-ups and bazaars are not covered under this grant.
In addition to the placemaking grant, two pilot heartland rejuvenation projects are set to launch in Bukit Gombak and Tampines West. These initiatives aim to transform neighborhood centers into modern hubs for community gatherings and events, showcasing the rich history and heritage of the heartlands.
New Grant Programme to Support Sustainability Reporting
Singapore introduces a new Sustainability Reporting Grant aimed at supporting large companies with annual revenues exceeding S$100 million in developing their first sustainability reports. Announced during the Ministry's Committee of Supply debate by Minister of State for Trade and Industry Low Yen Ling, this grant covers up to 30 percent of qualifying costs, capped at S$150,000 per company, for the preparation of initial sustainability reports. With increasing expectations from customers and investors for transparency regarding environmental impact, the grant seeks to incentivize businesses to embrace sustainable practices and disclose their carbon footprint.
In addition to the Sustainability Reporting Grant, efforts are underway to assist SMEs in navigating sustainability reporting requirements. Enterprise Singapore (EnterpriseSG) will launch a new program in late 2024, partnering with appointed sustainability service providers to guide SMEs through the process of developing their first sustainability reports. Eligible SMEs participating in the program will have a significant portion of their costs offset by EnterpriseSG, with 70 percent covered in the first year and half in the subsequent two years, demonstrating a commitment to promoting sustainability across diverse business sectors.
These initiatives align with Singapore's broader strategy to encourage businesses to adopt sustainable practices and reduce carbon emissions. Alongside the Sustainability Reporting Grant and SME support program, adjustments to the Resource Efficiency Grant for Emissions further underscore the government's commitment to facilitating green initiatives. By lowering the threshold for qualifying projects and extending the grant's duration, Singapore aims to accelerate efforts towards environmental sustainability and foster a greener economy for the future.
Additional Funding to Boost Startups in Tourism Sector
In a bid to bolster the tourism sector's recovery post-pandemic, Singapore has allocated over S$300 million to a government fund for tourism development. Minister of State for Trade and Industry Alvin Tan announced this initiative during his ministry's Committee of Supply debate, highlighting the importance of supporting the country's tourism industry through targeted investments. The allocated funds will be utilized for the development and marketing of new tourism products and experiences, with a focus on rejuvenating existing offerings and fostering innovation within the sector.
A significant portion of the funds will be dedicated to supporting local enterprises in developing new intellectual properties and enhancing their competitiveness in the tourism market. Additionally, efforts will be made to upskill tourism workers, ensuring that the sector's workforce remains adaptable and equipped with the necessary skills to meet evolving demands. Minister Tan emphasized the role of the Tourism Development Fund 4 in driving innovation and sustainability within the tourism ecosystem, citing examples such as attracting major attractions like the Disney Cruise Line's exclusive home-porting in Singapore from 2025.
Singapore's commitment to investing in the tourism sector is twofold: supporting its recovery through targeted financial assistance and collaborating with industry stakeholders to curate unique and high-quality tourism experiences. This strategic approach aims to maintain Singapore's international appeal as a compelling destination, attracting visitors with a diverse array of leisure and business offerings. Initiatives such as the development of a new Sensoryscape path in Sentosa and hosting prestigious events like the Global Sustainable Tourism Council Global Conference and National Retail Federation 2024: Retail's Big Show Asia-Pacific underscore Singapore's commitment to elevating its tourism landscape and driving sustainable growth in the sector.
OCBC Reports SMEs in Expansionary Mode
According to the OCBC SME Index, Singaporean small and medium-sized enterprises have shown sustained expansion for four consecutive quarters, indicating a positive trend in economic activity. The Q4 2021 Index reached 52.6, following previous readings of 53.6 in Q3 2021 and 59.5 in Q2 2021. This consistent growth underscores the resilience of SMEs amid ongoing challenges, with many businesses leveraging digitalization and e-commerce to address supply chain disruptions and drive year-on-year growth.
Despite overall expansion, certain sectors continue to face challenges. The Food and Beverage (F&B) industry, for instance, witnessed its second consecutive quarter of contraction, with both F&B retail and F&B services experiencing declines. Factors such as lower foot traffic contributed to deteriorating cash coverage positions, highlighting the need for continued support and adaptation strategies within this sector. Similarly, the building and construction industry slowed in Q4, primarily due to project delays caused by manpower shortages and rising material prices. Despite these challenges, both sectors remained expansionary, with collections showing year-on-year growth.
Looking ahead, while SMEs remain in expansionary mode, potential risks could dampen recovery efforts. Factors such as tightening safe management measures and monetary policy could impact financing costs and cash flow, posing challenges for SMEs in various industries. However, robust growth persists in sectors like manufacturing, wholesale trade, information and communications technology, and business services, driven by strong cross-border trade and increased demand. Overall, the data reflects the resilience and adaptability of Singapore's SMEs in navigating economic challenges and driving sustained growth.
Funding Rounds for Singapore Startups
Securing Privacy-Preserving Collaborative Computing: Silence Laboratories Raises US$4.1M
Silence Laboratories, a Singapore-based cybersecurity startup focusing on Web3 technologies, has recently secured an additional US$4.1 million in funding. Led by Pi Ventures and Kira Studio, with contributions from prominent angel investors, the funding will be instrumental in scaling the company's tech and business teams while enriching its R&D pipeline. Founded in 2021 by Dr. Jay Prakash, Dr. Andrei Bytes, and Dr. Tony Quek, Silence Laboratories specializes in privacy-enhancing technologies through a fusion of cryptography and security engineering, targeting enterprises.
The company's vision is to establish a global infrastructure for privacy-compliant collaboration and exchange, effectively eliminating single points of failure. Leveraging multi-party computation (MPC) as their core cryptographic primitives, Silence Laboratories offers products like Silent Shard and Silent Compute. These solutions empower enterprises to safeguard sensitive private keys, establish advanced authorization rules, and facilitate collaborative information processing among organizations without exposing their secrets to third parties. With a growing global demand for privacy-enhancing technologies, Silence Laboratories' offerings are poised to address the increasing need for secure data collaboration while minimizing risks and maintaining compliance and trust.
BuildBear Labs: Web3 Development Tools Startup Secures US$1.9M Funding
BuildBear Labs, a Singapore-based innovator in Web3 development tools, has recently secured approximately US$1.9 million in funding, co-led by Superscrypt, Tribe Capital, and 1kx. The funding round also saw participation from Iterative, Plug-N-Play, and notable angels like Kris Kaczor and Ken Fromm. The capital infusion will be channeled towards accelerating the development of BuildBear Labs's flagship platform, which aims to revolutionize dApp development and testing in the Web3 landscape.
Founded by Dipesh Sukhani and Emmanuel Antony, BuildBear Labs specializes in building an automated and continuous testing engine (ACTE) tailored for Web3. Their platform offers developers the capability to create custom Private Testnet sandboxes across multiple Ethereum Virtual Machine (EVM) and EVM-compatible blockchain networks. Key features include private faucets for unlimited Native and ERC20 token minting, enabling developers to streamline and enhance their development and testing processes. With over 7,700 sandbox testing environments created and an active retention rate exceeding 35 percent, BuildBear Labs is poised to become a significant player in the Web3 ecosystem, fostering collaboration and innovation within the industry.
Prefer Raises US$2M to Expand Bean-Free Coffee Brand into Philippines
Prefer, a Singapore-based bean-free coffee startup, has successfully raised US$2 million in seed funding led by Forge Ventures. The funding round saw participation from prominent investors such as 500 Global, A*ccelerate, Better Bite Ventures, and SEEDS Capital, among others. This capital injection will enable Prefer to expand its ground coffee and ready-to-drink bottled beverages across the Asia Pacific region, starting with Singapore and the Philippines.
Founded in 2022 by Jake Berber and Tan Ding Jie, Prefer offers a unique coffee experience without using traditional coffee beans. Instead, the company utilizes proprietary fermentation technology to upcycle surplus bread, soy pulp, and spent grain into a coffee substitute that retains the aroma, taste, and brewing experience of traditional coffee. With climate change threatening coffee farmlands and causing coffee bean prices to soar, Prefer aims to provide a sustainable and affordable alternative to conventional coffee, ensuring long-term stability in coffee production and pricing.
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