Singapore boosts startup funding under Budget 2026
Singapore announces a S$1 billion Startup SG Equity top-up and expands growth-stage support to strengthen startups and public listings under Budget 2026.
Singapore will increase support for startups seeking to scale, with a S$1 billion top-up to the Startup SG Equity scheme announced as part of Budget 2026. The move is aimed at helping companies move beyond early funding stages and secure the larger pools of capital needed for long-term growth and expansion.
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The measures were announced in Parliament on 12 February by PM Lawrence Wong, who said the government wants to strengthen Singapore’s position as a place where promising enterprises can grow, mature, and eventually list. The funding boost comes amid a more challenging global investment environment, particularly for companies looking for growth-stage capital.
Startup SG Equity was introduced to provide early funding to promising startups while encouraging private investors to invest alongside the government. Over time, the scheme has supported the development of Singapore’s startup ecosystem, especially at the seed and early stages.
However, PM Lawrence Wong noted that while startups today find it easier to access early-stage capital than a decade ago, many still face difficulties when they reach the growth phase. These challenges are especially pronounced for deep-tech firms, which often require larger and longer-term investments to scale successfully.
Startup SG Equity expands to support growth-stage companies
As part of the changes, Startup SG Equity will be expanded to cover growth-stage companies, marking a shift in the focus of the scheme. Instead of concentrating mainly on early-stage startups, the programme will now support firms that are ready to scale operations, enter new markets, or invest further in technology and talent.
PM Lawrence Wong said that tightening growth-stage capital conditions globally have made it harder for companies to raise the larger sums needed for expansion. Investors have become more cautious, and funding cycles have lengthened, creating gaps for firms that are no longer early-stage but not yet ready for public markets.
By extending Startup SG Equity to later-stage companies, the government aims to catalyse more growth capital in Singapore. Public funding will continue to be used to crowd in private investment, rather than replace it, with the aim of reducing risk and encouraging co-investment from the private sector.
The expansion is also intended to help anchor companies with strong links to Singapore, even as they grow internationally. This is particularly relevant for technology-intensive firms, where research, development, and talent costs are higher and returns take longer to materialise.
To support this effort, Second Minister for Finance Chee Hong Tat will lead a new workgroup that will work with industry players. The group will develop strategies to position Singapore as a leading centre for growth capital, strengthening the ecosystem beyond early-stage funding.
Anchor Fund receives second S$1.5 billion tranche
Alongside support for private companies, the government will also strengthen efforts to attract and anchor high-quality public listings in Singapore. PM Lawrence Wong announced a second S$1.5 billion tranche for the Anchor Fund, which was first set up in 2021.
The Anchor Fund is co-invested by the government and Temasek, and is designed to attract companies with strong fundamentals to list on the Singapore Exchange. The new tranche matches the size of the initial S$1.5 billion allocation, bringing the total commitment to S$3 billion.
Since the fund’s launch, PM Lawrence Wong said there have been encouraging signs of renewed listing activity in Singapore. While global capital markets remain volatile, the government sees opportunities to strengthen Singapore’s role as a regional and international listing hub.
The fund forms part of a broader effort to ensure that companies which start and grow in Singapore also choose to list locally when they are ready. This includes efforts to deepen the pool of institutional investors and improve overall market liquidity.
He said: “When enterprises are ready to list, we want them to see Singapore as their listing venue of choice.”
Building a full pipeline from startup to listing
Budget 2026 is the first budget since Singapore’s most recent General Election, and the first under the current term of government. The emphasis on startups and capital markets reflects a broader push to strengthen economic resilience and support sustainable, long-term growth.
By addressing gaps in growth-stage funding, the government aims to create a more complete pipeline, from early innovation to public listing. This approach is intended to help retain high-quality companies and skilled talent in Singapore, even as regional competition for capital intensifies.
The combination of an expanded Startup SG Equity scheme and a larger Anchor Fund points to a more coordinated strategy. Early-stage support, growth capital, and public market development are being linked to support companies at every stage of their journey.
For startups, the changes may provide clearer pathways to scale without shifting key operations overseas. For investors, the measures are expected to create more opportunities to invest in high-growth companies anchored in Singapore.
As global economic conditions remain uncertain, the government’s approach is to use targeted public funding to crowd in private capital, rather than rely on broad-based stimulus. The focus remains on building quality businesses, strengthening capital markets, and positioning Singapore as a leading hub for innovation and listings in the region.
