The Business Times featured an article based on an interview with Tong Hsien-Hui, Head of Venture Investing at SGInnovate, on the challenges that Deep Tech startups face beyond the early stage. According to Hsien-Hui, early funding stages tend to be well-taken care of because of the government’s strong push to commercialise more Deep Tech companies, but challenges arise from the Series B stage onwards when the needs of the business are beyond what can be funded by its founders and early-stage investors. A Deep Tech investments white paper published by SGInnovate found that investors remain cautious about the Deep Tech sector despite the compelling proposition of defensible technologies paired with smart business models. More work needs to be done to educate limited partners on the potential of returns in the sector. As Singapore’s startup ecosystem matures, it is important that Deep Tech funding comes from local investors as well. Hsien-Hui added that while foreign investment is welcome, investors might bring the company to where the returns are best and be agnostic to national interest.
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