The Rise of Accelerator Programs
Over the past decade, startup accelerators have become an integral part of Singapore's booming startup ecosystem. Accelerators provide funding, mentorship, networking opportunities, and other resources to help early-stage startups launch and scale rapidly. Some of the earliest and most prominent accelerators in Singapore include Velocity Accelerator, Jumpstart Academy, and Seedstars. These programs helped validate the accelerator model and proved there was demand from local entrepreneurs for this type of support.
According to a recent report by Global Accelerator Network, there are now over 30 active accelerators based in Singapore offering funding of between SGD$15,000 to SGD$100,000 in exchange for 5-10% equity in startups. This marks a dramatic increase from just 10 accelerator programs operating in Singapore in 2015. The rise of accelerators has been driven by growing support from the government, corporates, entrepreneurs, and investors who see their value in catalyzing innovation.
Government Programs Fuel Growth
The Singaporean government has played a key role in developing the accelerator ecosystem through initiatives like Startup SG Founder and the Sector-Specific Accelerator Grant. These programs provide matching grants and other incentives for accelerators to launch new sectors or expand existing programs. To date, over SGD$20 million has been committed to accelerators through various public-private funding schemes.
Startup SG Founder in particular has been instrumental in attracting global accelerators like 500 Startups, Accelerace, and Golden Gate Ventures to set up local operations. These international brands bring expertise, networks, and credibility that benefit both the startups they support as well as Singapore's image as a startup hub. The program also encourages local accelerators to specialize in high-growth industries aligned with the government's economic priorities like healthtech, fintech, and urban solutions.
Corporate Accelerators on the Rise
In addition to independent accelerators, Singapore has seen a boom in corporate accelerator programs led by large companies. Accelerators established by corporations like DBS, Grab, and TripBoat provide startup funding, mentorship from internal experts, potential pilot partnerships, and access to corporate clients and customers. This aligns well with the government's vision of encouraging collaboration between startups and large enterprises.
Moreover, as Singapore transitions to a knowledge-based economy, corporate accelerators allow companies to discover innovative new solutions, technologies, and business models from startups that can help transform and future-proof their own businesses. Fueled by tax incentives for corporate R&D and pilot projects with startups, more Singapore headquartered multinationals are expected to venture into accelerator programs in the coming years.
Crypto and Web3 Accelerating Growth
Another emerging sector contributing significantly to Singapore's accelerator growth is blockchain and crypto. With a supportive regulatory framework for token offerings and crypto trading, the city-state has become a hotbed for blockchain innovation in Asia. Specialized accelerators backing crypto and Web3 startups like Global Blockchain Accelerator, Coinhako Accelerator, and Tribe Accelerator have sprung up to fill this growing industry niche.
These programs tap into the city's active crypto community of investors, companies, and tech talent focused on applications of decentralized technologies. They offer deals valued higher than traditional accelerators, in the range of SGD$100,000 to SGD$500,000, reflecting the larger funding needs of their startups in developing core blockchain capabilities. With continued maturing of regulations and infrastructure, crypto accelerators are expected to attract more global founders and drive further accelerator expansion.
Outlook for Continued Growth
With sustained government backing and support from new sectors, Singapore's accelerator industry looks poised for further growth in the coming years. Factors like positive COVID-19 economic recovery, upcoming 5G and AI technologies, and continued development of innovation clusters position the city-state strongly to capture more global startups. Industry projections estimate over 50 accelerator programs could be active in Singapore by 2025, driving between SGD$150-SGD$200 million annually in startup funding.
As the ecosystem matures, accelerators are also undertaking new initiatives to support later funding rounds, overseas expansion, and exits for alumni companies. This will help strengthen Singapore's end-to-end entrepreneurial pipeline. With its pro-business environment, political stability, connectivity to global demand, and emerging edge in future sectors, Singapore is cementing its status as a leading accelerator hub in Asia Pacific. Its thriving startup scene will be increasingly powered by a robust and expanding network of investment programs fueling the next wave of innovation.
Published Date: Oct 2024
