Market Insights Financial Capital Raising Traditional Capital Raising

Venture Debt - Singapore

Singapore

The country in Singapore is projected to see Total Capital Raised in the Venture Debt market market reach €2.44bn in 2024.
Traditional Venture Debt is expected to dominate the market with a projected market volume of €2.39bn in 2024.
In global comparison, the United States will generate the most Capital Raised (€20,780.0m in 2024).
Singapore's Venture Debt market is rapidly expanding, offering startups an alternative to equity financing in the competitive capital-raising landscape.

Key regions: Brazil, Germany, United Kingdom, Singapore, China

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Analyst Opinion

Singapore is known for its thriving startup ecosystem and has become a hub for entrepreneurial activity in Southeast Asia. In recent years, the Venture Debt market in Singapore has witnessed significant growth and development.

Customer preferences: Entrepreneurs and startup founders in Singapore are increasingly turning to venture debt as an alternative financing option. This is primarily driven by the desire to preserve equity and maintain control over their businesses. Venture debt allows startups to access capital without diluting their ownership stakes, which is particularly attractive for founders who want to retain control of their companies. Additionally, venture debt provides startups with the necessary capital to fuel their growth and expansion plans, without the need to rely solely on equity financing.

Trends in the market: One of the key trends in the Venture Debt market in Singapore is the increasing number of venture debt providers entering the market. This is a reflection of the growing demand for alternative financing options among startups. These providers offer customized debt solutions tailored to the specific needs of startups, including flexible repayment terms and lower interest rates compared to traditional bank loans. The entrance of new players into the market has also led to increased competition, which has further fueled the growth of the Venture Debt market in Singapore. Another trend in the market is the rising popularity of venture debt among early-stage startups. Traditionally, venture debt has been more commonly associated with later-stage companies. However, in Singapore, early-stage startups are also recognizing the benefits of venture debt as a means to bridge the gap between equity rounds and secure additional capital for growth. This trend is driven by the need for startups to accelerate their growth plans and gain a competitive edge in the market.

Local special circumstances: Singapore's favorable regulatory environment and supportive government initiatives have played a significant role in the development of the Venture Debt market. The government has implemented various schemes and programs to promote entrepreneurship and innovation, including providing funding support for startups. This has created a conducive environment for venture debt providers to operate and has encouraged startups to explore alternative financing options.

Underlying macroeconomic factors: Singapore's strong economic growth and its position as a regional business hub have contributed to the development of the Venture Debt market. The country's stable political environment, robust infrastructure, and access to global markets make it an attractive destination for startups and investors alike. Additionally, Singapore's status as a financial center has facilitated the availability of capital for venture debt providers, further fueling the growth of the market. In conclusion, the Venture Debt market in Singapore is experiencing significant growth and development, driven by customer preferences for alternative financing options, the entrance of new players into the market, and supportive government initiatives. With the increasing demand for venture debt among startups, coupled with Singapore's favorable business environment, the market is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.