Singapore Fintech Funding Falls 10% to $208 Million in Q3 2024
Singapore’s fintech sector raised $208 million in the third quarter of 2024, reflecting a 10% drop compared to the same period in 2023, according to data from Tracxn. This decline aligns with the broader downward trend in tech startup funding across Singapore.
Tech Funding Trends in Singapore
The overall tech startup ecosystem secured $397 million in Q3 2024, down 26% from the $536 million raised in Q3 2023. However, funding rose by 9% compared to the previous quarter, when startups brought in $363.6 million.
The funding slowdown in Q3 was attributed to a lack of large deals, as no rounds exceeding $100 million were reported. Similar to Q3 2023, no new unicorns (startups with valuations exceeding $1 billion) emerged during this period.
Stage-by-Stage Funding Breakdown
Despite the overall decline, performance varied across different startup stages:
- Late-stage startups saw a 48% increase, raising $80 million compared to $53.9 million in Q2 2024.
- Early-stage investments dropped by 8% to $237 million, down from $258 million in Q2.
- Seed-stage startups experienced the most significant growth, with funding surging 56.5% to $80.3 million in Q3 2024.
Acquisitions and Investor Activity
There were 13 acquisitions in Q3 2024, slightly down from 14 in the same quarter last year, though higher than the 6 acquisitions recorded in Q2 2024.
Top investors during the quarter included Wavemaker Partners, Antler, and Entrepreneur First. For seed-stage investments, Antler, Orbit Startups, and East Ventures took the lead, while Peak XV Partners, SEEDS Capital, and Temasek were the most active in early-stage rounds.
Outlook
Though fintech and tech startups faced challenges with fewer large funding rounds and no new unicorns, there were positive signs in seed-stage growth and late-stage investments. These shifts indicate that while the current funding landscape remains cautious, investors are still willing to back promising startups at different stages, positioning Singapore’s tech ecosystem for gradual recovery.
