Weekly digest - November 03 2021

Singapore has launched various initiatives to plug holes in its technology ecosystem. Some arguably haven’t worked: the mid-1990s Technopreneurship Fund that seeded VC managers who decamped to China. Others arguably have: the series of capital matching schemes from 2010 designed to stimulate early-stage activity.

With capital increasingly plentiful at all stages through late-growth – thanks largely to technology sector tailwinds – Singapore is focused on the point of IPO. There will be a pre-IPO fund to encourage listings by high-growth companies and an IPO anchor fund to ensure a strong institutional reception. Industry participants also suggest that restrictions on sovereign money participating in local markets, intended to reduce concentration risk, could be relaxed. This may shore up secondary market activity. Singapore even has a regime for special purpose acquisition companies (SPACs).

Most recently, Temasek Holdings officially unveiled 65 Equity Partners, a wholly-owned entity responsible for managing the IPO anchor fund and a separate vehicle tasked with developing regional champions. 65 Equity Partners will also make investments of $100-200 million in more mature companies eyeing regional and global expansion.

Numerous investors speak positively about the efforts being made, but their answers lack definitive resolution. There are always caveats – much depends on whether Singapore can stay head of the game on regulation without compromising its safeguards, and whether it can deliver a liquid enough market that companies attracted to list on the local exchange want to remain listed there. Most of these investors speak from experience, having seen a few false dawns.

• SPACs: Longer menu - October 2021