Building Deep-Tech Startups in Singapore: The Role of SDTA Ventures
The world of deep-tech holds immense potential to drive transformative solutions that address some of society's most pressing challenges. Yet, turning groundbreaking research and complex technologies into scalable, successful businesses remains a significant hurdle for many entrepreneurs. This is particularly true in regions like Singapore, where a strong research foundation exists, but the pathway to commercialization is often less clear.
The Deep-Tech Opportunity in Singapore
Singapore has emerged as a hub for research and development (R&D), with significant investments made in the development of cutting-edge technologies across various industries. While the country has been successful in creating a strong foundation for scientific research, translating this research into real-world applications has proven to be more challenging. This gap between research and commercialization presents a huge opportunity for deep-tech ventures to thrive.
Deep-tech startups are unique because they are often based on scientific breakthroughs or engineering solutions that are difficult to replicate. These innovations can range from advanced manufacturing techniques to life-changing medical devices or clean energy solutions. However, deep-tech ventures come with higher risks compared to traditional tech startups. These risks include technological uncertainty, market entry challenges, and the need for substantial capital to bring products to market.
Given these complexities, there is a growing recognition that venture-building models could help overcome some of these challenges, offering support and structure for deep-tech entrepreneurs.
Venture Building: A Hands-On Approach
While venture capital (VC) has long been the dominant model for funding startups, it often doesn’t offer the level of involvement that deep-tech ventures require. Venture capitalists typically provide funding and take a step back, leaving entrepreneurs to navigate the complexities of technology development, talent acquisition, and market fit on their own.
For SDTA, this means playing an integral role in sourcing talent, finding the right technology, and building partnerships with key stakeholders, including research institutions, corporate partners, and government bodies. This approach significantly lowers the risks associated with deep-tech ventures and increases the chances of success.
One of the unique aspects of SDTA’s model is its collaboration with research institutions like A*STAR and universities. Instead of starting from scratch, SDTA works closely with these institutions to access technologies that are already being developed and vetted. This allows SDTA to create ventures based on proven scientific research, which accelerates the commercialization process.
Collaboration with Research Institutions and Corporates
One of the key components of successful venture-building models in the deep-tech space is collaboration. This is particularly true when it comes to working with research institutions and corporate partners. By tapping into existing research and technology, venture builders can ensure that the ventures they create are grounded in proven, high-potential technologies.
For example, rather than starting from scratch, venture builders can work closely with research institutes like A*STAR to access technologies that have already been developed and tested. This helps accelerate the commercialization process, allowing startups to bring products to market faster while reducing the inherent risks of developing new technologies from the ground up.
In addition, corporate partners play a vital role by offering real-world problem statements and opportunities for pilot projects. These early-stage collaborations ensure that the technologies being developed have a clear path to market, and startups are able to connect with potential customers early on. These relationships provide startups with both technological support and market validation, critical components for success.
The Importance of Ecosystem Support
A successful startup ecosystem is one that supports ventures at all stages of their journey. In the case of deep-tech ventures, this support must come from multiple stakeholders: entrepreneurs, research institutions, corporate partners, and government bodies. By creating a strong network of support, deep-tech startups are not only able to reduce risks but also increase their chances of building a sustainable, scalable business.
This ecosystem approach makes deep-tech ventures more market-ready from the start, providing access to the resources, guidance, and partnerships needed to thrive in a competitive landscape. Rather than relying on capital alone, deep-tech entrepreneurs gain a more holistic approach to startup growth.
A Systematic Approach to Innovation
SDTA Ventures’ approach to creating new ventures is both structured and systematic. The organization follows a process that begins with identifying promising technologies and problem statements from industry partners. These are then developed into viable business opportunities, with SDTA playing an active role in due diligence, talent acquisition, and business strategy development.
The goal is to create 5 new ventures per year, with a target of 25 ventures over the next five years. By focusing on quality over quantity, SDTA ensures that each venture has the right support, resources, and market opportunities to succeed.
Looking Toward the Future
As Singapore continues to foster its deep-tech ecosystem, the need for innovative approaches to entrepreneurship and venture creation will only increase. The rise of venture builders in deep-tech is helping to shape the future of innovation, ensuring that breakthrough technologies are not only developed but also successfully commercialized. As more entrepreneurs take on the challenge of creating deep-tech companies, the role of these support structures will be crucial in driving the next wave of technological advancements.
As the deep-tech landscape grows, the shift toward collaboration, ecosystem support, and hands-on venture building will be key factors in fostering the startups that will define the future of innovation.
Credits: Luuk Eliens, Managing Partner at SDTA Ventures