Singapore commits $111.5m to fintech ecosystem
The Monetary Authority of Singapore (MAS) has committed to invest up to SGD 150m (USD 111.5m) over three years in the local VC and financial technology start-up ecosystem.
It marks a renewal of the Financial Sector Technology & Innovation Scheme, or FSTI, which was launched in 2015. The first tranche awarded around SGD 100m to some 500 projects; a second tranche of SGD 200m funded more than 1,000 projects.
The latest allocation under the scheme will target corporate venture capital (CVC) projects, providing up to 50% of their expenses, capped at SGD 2m per project.
“Given the importance of CVCs in identifying and nurturing the next generation of start-ups, the funding will enable CVCs to offer strong mentorship and support to help start-ups scale and develop resilient and viable business models,” MAS said in a statement.
There will also be a special interest in web3, artificial intelligence, data analytics, and regulation technology start-ups. The programme includes a discrete track for fintech related to environmental, social and governance (ESG) compliance. ESG fintech investments will be capped at SGD 500,000 per project.
PE and VC investment in Singapore-based fintech companies has surged in recent years. The segment received USD 1.8bn across 70 deals in 2021 and USD 1.9bn across 66 deals in 2022. This compares to a total of USD 1.4bn across 163 deals for the five-year period from 2016 to 2020. About USD 772.8m has been invested across 28 deals in 2023 to date.
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