The National University of Singapore (NUS) is ramping up investments in its own spinouts as venture capital (VC) funding for early-stage companies in Southeast Asia plunges to a decade low.
NUS is striving to solidify its status as a hub for deep tech expertise through the expansion of NUS Enterprise, the university’s commercialization arm. With a focus on fostering innovation, NUS aims to navigate murky waters as venture capital funding dwindles in the region.
In a proactive response to the current funding landscape, NUS launched a $120 million fund within the past six months. This fund is earmarked for not only its spinouts but also for collaborations with early-stage VC funds. A key part of this initiative involves tapping into U.S. expertise, as NUS has recruited two seasoned VC advisors: Patrick Ennis and Donna See.
Furthermore, NUS has expanded its footprint internationally by setting up an office in Tokyo, targeting better access for its spinouts to the Japanese and Southeast Asian markets. Plans for additional locations in Silicon Valley and Europe are also in the works.
“We have a vision for Singapore to be recognized globally as a launch pad for deep tech ventures,” says Tan Sian Wee, senior vice president of innovation and enterprise at NUS. This vision encompasses establishing international outposts in various innovation hubs to drive venture-grade spinouts. The focus isn’t solely on financial returns; it’s about harnessing cross-border talent and intellectual property at the outset of each project.
Tan notes that the time is ripe for NUS to strive for global recognition, emphasizing that the university has invested approximately $60 billion over the last 30 years building out its research and academic infrastructure. This strategic investment places NUS in an advantageous position to fill the gap left by private markets as early-stage VC funding dwindles.
“It is very difficult to get venture capital now in Southeast Asia for long-term investments,” Tan comments. “We need to build out a launching capability to take these innovations into markets where they can be transformed into viable companies.”
Tan’s entrepreneurial background equips him with a unique perspective; he has co-founded two companies and worked extensively in fundraising and venture capital with Singapore’s Monk’s Hill Ventures and elev8.vc. His experience informs the strategic direction of NUS Enterprise as it seeks long-term partnerships.
The newly established NUS fund has an evergreen structure, reflecting the long-term investment needs essential for deep tech research, which often requires extended development timelines. With around 1,600 researchers working on cutting-edge technologies—including photonic-based semiconductor tech, mechanical and synthetic biology, and quantum computing—the fund is well-positioned to support a diverse range of innovations.
Among its spinouts, notable companies include B1Neuro, a firm specializing in MRI-guided transcranial magnetic stimulation for treating depression; Nanolumi, focusing on advanced materials based on perovskite quantum dot technology; and Roseco Technologies, which develops soft robotics for assisting patients with limb impairments.
Of the $120 million fund, $80 million will be allocated to support internal spinouts, while the remaining $40 million will be invested in six VC funds. Initial investments have been made in Granite Asia, a multi-asset investment firm, and 4BIO Capital, specializing in life sciences. Additionally, NUS intends to set aside $78 million for co-investment opportunities with these VC partners in NUS startups.
Strategic agreements with SG Growth Capital, a government investment fund in Singapore, and family office Lotus One Investment will further bolster financing for NUS spinouts, helping to capture available opportunities in the market.
With a robust pipeline of startups emerging from its programs, NUS is keen to access global VC markets not just for funding but also for attracting top talent. Tan emphasizes the significance of this as NUS navigates through the challenges of a changing investment climate.
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In July this year, NUS Enterprise made significant strategic hires. Patrick Ennis, previously a venture partner at Madrona Venture Group in the U.S., was brought on board to provide expertise on research translation policy, startup evaluation, incubation, and international expansion.
Additionally, they recruited Donna See, the CEO of deep tech investment firm Xora Innovation, who has a history of investing in NUS spinouts. Her focus will be on enhancing research translation and bolstering NUS’s competitive edge on the global stage.
Together, Tan and his team are ambitious, aiming for the NUS venture arm to generate over a billion dollars in financial returns and to see at least one venture emerge from its intellectual property that reaches over $100 million in annual revenue.
“We’re looking at the long term for this. This is a minimum 10-year journey,” Tan affirms, highlighting the university’s commitment to nurturing groundbreaking technologies and fostering a robust ecosystem for innovation.