Life After the Bell: Navigating Post-IPO Compliance and Investor Relations in Singapore

When the ceremonial bell rings on listing day, it’s easy to view an IPO as the finish line, the culmination of years of strategic growth, preparation, and regulatory approval. But for newly listed companies on the Singapore Exchange (SGX), that moment marks the beginning of a new chapter, not the end.

Going public brings visibility, liquidity, and access to capital. Yet it also introduces ongoing obligations, governance requirements, disclosure rules, and the need to engage a new, diverse group of shareholders. Managing this transition effectively determines whether a company thrives as a trusted public entity or struggles under the weight of compliance and market scrutiny.

The Post-IPO Reality: From Private to Public Mindset

Private companies often enjoy flexibility and privacy in decision-making. Once listed, however, they operate in a space where transparency, accountability, and consistency are non-negotiable.

Singapore’s capital markets are built on investor confidence, and maintaining that confidence requires companies to adopt a public-company mindset, one that prioritizes timely disclosure, sound governance, and proactive communication.

While the IPO process demands intense preparation, post-listing obligations require sustained discipline. The real challenge is striking a balance between growth ambitions and the rigorous framework of public market expectations.

Compliance Comes First: Understanding SGX Obligations

Compliance is the backbone of life after listing. The SGX mandates a comprehensive set of rules designed to uphold market integrity and protect investors. Here are some of the key areas companies must stay on top of:

1. Continuous Disclosure

Under the SGX Listing Rules, listed companies are required to disclose any information that may materially affect their share price promptly and transparently. This includes major acquisitions, leadership changes, profit warnings, or strategic shifts.

Timely disclosure ensures a level playing field for all investors and helps prevent concerns about insider trading. Companies must develop strong internal processes to identify, review, and release material information efficiently.

2. Financial Reporting

Public companies must publish:

• Quarterly or semi-annual financial results (depending on market board)

• Audited annual financial statements within three months after the year-end

• Detailed management discussion and analysis (MD&A) explaining performance, risks, and outlook

Accuracy and clarity are paramount. Inaccurate or incomplete reporting can lead to reputational damage, penalties, and loss of investor trust.

3. Corporate Governance

The Code of Corporate Governance in Singapore outlines principles on board composition, independence, and accountability. Companies are expected to:

• Maintain a balanced and independent board

• Disclose directors’ remuneration and interests.

• Implement robust risk management and internal control systems.

For investors, governance quality is often as important as financial performance. Companies with transparent structures and strong boards tend to attract more institutional interest.

4. Shareholder Meetings and Voting

Listed companies must hold an Annual General Meeting (AGM) within four months of the financial year-end. AGMs provide an opportunity to present results, discuss strategy, and engage directly with shareholders.

Beyond regulatory compliance, these meetings serve as a platform to strengthen relationships and demonstrate leadership transparency.

Investor Relations: The Art of Building Long-Term Trust

Once listed, every company enters a new marketplace, the market of investor perception. Managing that perception through effective Investor Relations (IR) is essential for sustaining valuation and credibility.

1. Establishing a Clear Communication Strategy

A strong IR program ensures investors understand the company’s story, strategy, and value proposition. Key communication tools include:

• Quarterly results announcements and briefings

• Investor presentations and reports

• Corporate website and press releases

• Engagement with analysts and media

Consistency is key. Mixed messages or irregular communication can confuse markets and erode confidence.

2. Knowing Your Shareholder Base

Understanding who owns your stock, whether institutional investors, retail shareholders, or strategic partners, helps tailor communication. Institutional investors often seek data-driven updates, whereas retail investors tend to focus more on dividends and a company's reputation.

Regular analysis of the shareholder register allows management to anticipate sentiment and respond proactively to changes in ownership.

3. Managing Expectations

The market values predictability and transparency. Companies should avoid overpromising and instead focus on delivering realistic targets with clear performance indicators.

When challenges arise, such as earnings volatility or market shifts, communicating early and honestly helps preserve credibility.

4. Leveraging Digital Channels

Modern IR goes beyond traditional reports. Webcasts, social media, and virtual AGMs have become powerful tools to reach broader audiences, especially in Singapore’s tech-savvy investment landscape.

Digital transparency not only meets regulatory expectations but also demonstrates the company’s adaptability to evolving investor needs.]

Common Post-IPO Challenges

Transitioning from private to public ownership often brings a learning curve. Some of the most common challenges include:

• Information overload: Adjusting to the frequency and depth of reporting required.

• Governance gaps: Aligning family-run or founder-led structures with SGX’s independence and disclosure standards.

• Market volatility: Navigating short-term price fluctuations without losing focus on long-term goals.

• Stakeholder balance: Managing expectations from investors, regulators, employees, and media simultaneously.

Addressing these challenges requires not only strong compliance frameworks but also a cultural shift within the organization—where every department understands its role in upholding public accountability.

The Role of Post-IPO Advisors

Just as companies rely on advisors during the IPO process, ongoing support from professionals remains vital afterward.

• Company Secretaries ensure adherence to SGX filing deadlines and corporate actions.

• Legal Advisors help interpret listing rules and manage regulatory risks.

• Auditors and Compliance Officers uphold financial accuracy and internal controls.

• Investor Relations Consultants guide communication strategy and investor engagement.

A robust advisory ecosystem enables management to focus on strategy and performance while ensuring that compliance and governance are consistently maintained.

Sustaining Momentum Beyond Listing Day

A successful IPO may capture headlines, but sustained market performance builds a legacy. Companies that perform well post-listing share a few common traits:

• Transparent leadership that communicates regularly and authentically.

• Strong governance that inspires investor trust.

• Strategic capital deployment that demonstrates disciplined growth.

• A commitment to continuous improvement in compliance, reporting, and stakeholder engagement.

Over time, these practices not only support valuation stability but also strengthen the company’s reputation in Singapore’s competitive capital markets.

Final Thoughts: From Compliance to Confidence

The IPO bell may mark the start of public trading, but it also signals the beginning of greater responsibility. Life after listing is a journey of discipline, adaptability, and strategic communication.

For companies on the SGX, success depends not only on meeting regulatory requirements but also on earning the ongoing confidence of investors and stakeholders. Those who master both compliance and investor relations position themselves for long-term growth, credibility, and enduring shareholder value.

Beyond the Hype: Case Studies of Successful (and Challenging) IPOs on the SGX

Each IPO represents a transition from private ownership to public accountability. On the Singapore Exchange, these transitions highlight both individual company journeys and broader trends in Southeast Asia’s capital markets.

Headlines usually focus on big IPO launches, but the real insights come from what happens after the first day of trading. Some companies keep growing and earn investor trust, while others face challenges like market swings, compliance demands, or slower growth.

This article examines case studies of both successful and challenging IPOs on the SGX, highlighting the factors that distinguish enduring performers from those that struggle.

The SGX Landscape: A Platform for Regional Growth

The Singapore Exchange is an important entry point for companies looking to raise money in the region and beyond. Its strong rules, investor-friendly environment, and reputation as a financial center attract a wide range of listings, from REITs to tech startups and manufacturers.

However, IPO success in Singapore isn’t guaranteed. Market conditions, investor sentiment, valuation strategies, and governance quality all play crucial roles in determining how a listing performs over time.

Case Study 1: Sea Limited – A Regional Tech Success Story

Sector: E-commerce & Digital Entertainment

Listed on: NYSE (Singapore-origin company, but benchmark for regional context)

Sea Limited, which owns Shopee and Garena, shows how a Singapore company can use public markets to grow worldwide. Even though it listed on the New York Stock Exchange instead of SGX, Sea’s story is still important for Singapore’s capital market.

What worked:

• Compelling growth story: Sea positioned itself as a Southeast Asian tech leader, targeting large and underserved markets.

• Strong investor communication: The company’s management clearly articulated its long-term vision, even during early losses.

• Scalable business model: Investors were convinced of its ability to translate market share into profitability.

Key takeaway:

Investors appreciate a clear growth story and strong leadership, even if a company isn’t profitable yet. For those aiming to list on SGX, telling a convincing story about the company’s future is key to IPO success.

Case Study 2: Nanofilm Technologies – Riding Innovation and Managing Expectations

Sector: Advanced Materials & Nanotechnology

Listed on: SGX Mainboard (2020)

Nanofilm Technologies had one of the biggest local tech IPOs on SGX in recent years, starting off with a lot of investor excitement. Its unique nanotechnology and use in different industries made it a popular choice in Singapore’s growing tech scene.

What worked:

• Strong technology moat: Nanofilm’s proprietary solutions positioned it as a differentiated player in a niche but growing market.

• Local investor confidence: As a Singapore-based deep-tech success story, it attracted both institutional and retail interest.

What challenged performance:

• Post-IPO volatility: Share prices faced downward pressure due to market sentiment and operational headwinds.

• Leadership transition: Founder-related changes led to investor concerns about long-term stability.

Key takeaway:

Even strong companies can run into problems if they don’t manage governance and communication well after going public. Keeping investor trust after the IPO is just as important as the listing itself.

Case Study 3: CapitaLand Investment – A Model of Strategic Restructuring

Sector: Real Estate & Investment Management

Listed on: SGX Mainboard (2021)

CapitaLand Investment (CLI) was formed when CapitaLand Limited split its investment management business from its property development side. This move created a focused investment platform for managing real estate funds and REITs.

What worked:

• Clear strategic focus: The demerger simplified CapitaLand’s structure and sharpened its business model.

• Strong fundamentals: CLI’s portfolio of quality assets and global presence appealed to long-term institutional investors.

• Robust governance: Transparent communication during the restructuring reinforced investor confidence.

Key takeaway:

Having a clear strategy and strong corporate governance can help a company succeed after listing. SGX investors look for companies that explain their value and long-term plans clearly.

Case Study 4: Hyphens Pharma – A Sustainable Growth Journey

Sector: Healthcare & Pharmaceuticals

Listed on: Catalist (2018)

Hyphens Pharma, a top specialty pharmaceutical and healthcare group, is a good example of a steady and sustainable IPO. Instead of chasing big headlines, Hyphens focused on steady growth and careful financial management.

What worked:

• Consistent performance: The company maintained profitability and grew organically through regional expansion.

• Transparent disclosures: Regular updates and clear communication built investor trust over time.

• Focus on fundamentals: Avoided speculative valuation, ensuring a fair and credible IPO price.

Key takeaway:

Long-term stability often matters more than making a big splash. In Singapore’s careful investment environment, companies that focus on steady growth usually gain lasting respect from investors.

Case Study 5: Challenging IPOs – When Market Timing and Governance Collide

While many SGX listings perform well, some face difficulties due to timing, market sentiment, or operational issues within the company.

Common pitfalls include:

• Overvaluation at listing: Companies that price aggressively often face immediate market corrections.

• Weak communication: Failing to manage post-IPO expectations or explain business performance can erode trust.

• Corporate governance issues: Any perception of insider control, opaque decision-making, or board weaknesses can deter institutional investors.

• Limited liquidity: Smaller floats or low trading volumes can result in subdued post-listing performance.

Example:

Some smaller companies listed on the Catalist board have struggled after their IPOs because of low trading activity and little investor attention. This shows how important it is to keep investors engaged and set realistic expectations.

Lessons from Both Success and Struggle

Examining SGX IPOs reveals a clear pattern: the most successful listings combine solid business fundamentals with effective governance and open communication with investors.

Key lessons include:

1. Storytelling is a strategy: A well-defined equity narrative aligned with growth plans attracts the right investors.

2. Governance earns confidence: Investors reward transparency, independence, and accountability.

3. Timing matters: Market sentiment can amplify or diminish even the best-prepared IPO.

4. Performance is ongoing: The real measure of IPO success is post-listing resilience and value creation.

Final Thoughts: Beyond Listing Day

An IPO isn’t the end goal; it’s the beginning of a new relationship with public investors. Companies that do well after listing on SGX know that the market values clear, credible, and consistent actions.

Success comes from strong fundamentals like transparent governance, steady growth, and good communication with investors, not just hype. The experiences of Singapore’s IPOs, both good and bad, show that real value is built after the IPO starts trading.

The SPAC Alternative: Is It a Viable Route to Public Markets in Singapore?

In recent years, few financial instruments have generated as much debate and intrigue as the Special Purpose Acquisition Company (SPAC). Globally, SPACs gained prominence in 2020 and 2021, offering a faster and more flexible path to the public markets. Singapore was among the first Asian jurisdictions to formally open its doors to SPAC listings, positioning itself as a regional hub for innovation in capital markets.

But several years on, questions remain: Has the SPAC model delivered on its promise in Singapore? And more importantly, is it a viable long-term route for companies seeking to go public on the SGX?

Understanding the SPAC Model

A SPAC, often called a “blank check company,” is essentially a shell entity formed to raise capital through an IPO, with the sole purpose of acquiring or merging with an existing private business.

Investors buy into the SPAC’s IPO without knowing the target company in advance, relying instead on the reputation and track record of the sponsors—usually experienced investors, private equity executives, or former industry leaders. Once a suitable target is identified, the SPAC merges with it, effectively taking the private company public through what’s known as a de-SPAC transaction.

In short, SPACs invert the traditional IPO process:

• Traditional IPO: The operating company lists directly.

• SPAC route: A listed shell acquires the operating company, resulting in its indirect listing.

Singapore’s SPAC Framework: A Balanced Approach

Recognizing both the opportunities and risks of the SPAC model, the Singapore Exchange (SGX) introduced a regulated framework in September 2021—becoming the first major Asian exchange to do so. The framework was designed to strike a balance between flexibility for sponsors and protection for investors.

Key features of the SGX SPAC rules include:

• Minimum market capitalization of S$150 million (to ensure credibility and scale).

• De-SPAC timeline of up to 24 months, extendable to 36 months with shareholder approval.

• Sponsor investment (“skin in the game”) of at least 2.5%–3.5% of IPO proceeds.

• Mandatory independent shareholder approval for the business combination.

• Redemption rights for shareholders who wish to exit before the merger.

This measured approach differentiated Singapore’s framework from more speculative markets in the U.S., where looser regulations led to waves of underperforming SPACs.

Early Movers: Singapore’s First SPAC Listings

By early 2022, three SPACs made their debut on the SGX Mainboard:

1. Vertex Technology Acquisition Corporation (VTAC) – sponsored by Vertex Holdings, a Temasek subsidiary.

2. Pegasus Asia – sponsored by European asset managers Tikehau Capital and Financière Agache.

3. Novo Tellus Alpha Acquisition – backed by Singapore private equity firm Novo Tellus.

These listings were welcomed as a measured test of market appetite. Each SPAC was led by experienced sponsors, strong governance practices, and credible institutional investors.

While the initial listings reflected confidence in Singapore’s SPAC framework, the pace of subsequent activity slowed. The reasons lie not in the framework itself, but in broader global dynamics.

Global Context: From Boom to Correction

The SPAC craze that began in the U.S. saw over 600 listings in 2021 alone. However, enthusiasm quickly waned as regulatory scrutiny increased and many de-SPAC companies underperformed post-merger.

Issues included:

• Overly optimistic projections that failed to materialize.

• Misaligned incentives between sponsors and public investors.

• Market corrections that eroded valuations.

By 2023, the global SPAC market had cooled considerably, shifting from exuberance to caution. Singapore’s measured entry into the space, in retrospect, shielded its investors from some of these excesses.

Singapore’s Experience: Slow but Steady

Singapore’s SPAC framework has proven credible but conservative. It successfully established safeguards and attracted reputable sponsors, but its uptake has been limited.

Several factors explain this:

• Market sentiment: Global cooling of SPAC enthusiasm reduced investor demand.

• Complexity of de-SPAC deals: Finding suitable targets that meet SGX standards has proven challenging.

• Competition from other routes: Many companies still prefer traditional IPOs or private capital raises.

That said, the first successful de-SPAC transaction in Singapore took place in 2023, when Novo Tellus Alpha Acquisition merged with Energy Drilling, marking a key milestone. The transaction demonstrated that SPACs can work effectively within Singapore’s regulatory and market environment when executed with discipline.

Advantages of the SPAC Route

Despite the cautious uptake, SPACs remain an appealing option for certain types of companies and investors.

1. Speed and Certainty
Compared to traditional IPOs, de-SPAC mergers can sometimes provide a faster path to market, particularly for high-growth or asset-heavy businesses that may not fit traditional listing molds.

2. Strategic Partnership
Sponsors bring not just capital but also strategic expertise, industry networks, and credibility, valuable assets for growth-stage companies entering public markets.

3. Pricing Flexibility
Unlike traditional IPOs, where valuation is largely determined during the book-building process, SPAC mergers allow the company and sponsor to negotiate valuation directly, offering more flexibility in aligning expectations.

4. Broader Investor Access
SPACs can attract both institutional and strategic investors who are aligned with the company’s long-term goals, creating a more stable shareholder base.

Challenges and Considerations

However, the SPAC route is not without its complexities:

1. Target Identification and Quality
Finding a suitable target within the de-SPAC window can be difficult. Targets must meet SGX’s listing requirements and appeal to shareholders, a dual challenge.

2. Regulatory Scrutiny
Given the relative novelty of SPACs in Singapore, regulatory oversight is rigorous. Companies must meet stringent disclosure and governance standards to ensure investor protection.

3. Market Perception
Despite global normalization, SPACs still carry mixed reputational baggage from their boom era. Convincing investors of a SPAC’s credibility requires exceptional transparency and execution.

4. Post-Merger Integration
Merging two entities, one public, one private, creates operational and cultural challenges. Success depends on clear post-deal strategy and experienced leadership.

When a SPAC Makes Sense

A SPAC listing may be viable for companies that:

• Operate in high-growth sectors such as technology, clean energy, or digital finance.

• Require strategic sponsors who can accelerate expansion and market access.

• Have strong fundamentals but are not yet ready for a traditional IPO due to timing or valuation concerns.

For sponsors, Singapore’s framework offers a credible and regulated avenue to pursue regional opportunities, particularly across Southeast Asia’s fast-growing markets.

Final Thoughts: A Complementary, Not Competing, Path

SPACs are not a replacement for traditional IPOs, but a complementary route for companies that fit the model’s profile. Singapore’s measured, investor-centric approach has created a sustainable foundation for SPAC activity, one focused on quality over quantity.

As market confidence stabilizes and successful de-SPACs build track records, the SPAC pathway could evolve into a strategic alternative for regional growth companies seeking a public listing.

In the meantime, one thing is clear: in Singapore’s capital markets, innovation is welcomed, but it must always walk hand in hand with integrity, governance, and long-term value creation.

The SGX IPO Process Demystified: A Timeline from Decision to Debut

Going public on the Singapore Exchange (SGX) is one of the most transformative steps a business can take. It offers access to new capital, enhances visibility, and builds credibility with investors, customers, and partners. However, the path to an Initial Public Offering (IPO) can seem complex, involving multiple stages, strict regulatory requirements, and detailed due diligence.

This guide breaks down the SGX IPO process into a clear timeline, from the initial decision to go public to the exciting debut on the trading floor. Understanding this journey helps companies prepare effectively, avoid common pitfalls, and maximize the benefits of listing on one of Asia’s most respected capital markets.

Phase 1: The Decision to Go Public (6–18 Months Before Listing)

The IPO journey begins long before any formal submission to SGX. At this stage, the company’s leadership must assess whether going public aligns with its long-term goals.

Key Considerations

• Strategic Objectives: Why go public? Common reasons include raising capital for expansion, strengthening a brand's reputation, or providing liquidity to early investors.

• Readiness Assessment: Evaluate financial performance, governance standards, internal controls, and business sustainability.

• Board and Shareholder Approval: The decision to list must be formally approved by the board and supported by major shareholders.

Many companies engage an Issue Manager (for Mainboard listings) or a Sponsor (for Catalist listings) at this stage to perform a pre-IPO diagnostic, identifying areas that require improvement before proceeding.

Phase 2: Appointing Your IPO Advisory Team (6–12 Months Before Listing)

Once the decision to list is made, assembling a capable IPO advisory team becomes the next priority.

Key Advisors Include:

• Issue Manager or Sponsor: Leads and coordinates the IPO process.

• Legal Advisors: Handle compliance, contracts, and drafting of prospectuses.

• Auditors and Reporting Accountants: Ensure the accuracy and compliance of financial statements.

• Independent Valuers: Provide fair valuation of assets and business units.

• Public Relations (PR) and Investor Relations (IR) Teams: Craft and manage the IPO narrative.

Engaging experienced advisors early helps streamline the process, avoid regulatory surprises, and strengthen investor confidence.

Phase 3: Due Diligence and Restructuring (3–9 Months Before Listing)

Before a company can list, it must go through extensive due diligence, a comprehensive review of its business, financials, and legal structure.

What Happens During This Stage

• Legal Due Diligence: Verifies ownership, contracts, and intellectual property rights.

• Financial Due Diligence: Auditors review past financial statements for accuracy and compliance with Singapore Financial Reporting Standards (SFRS).

• Corporate Restructuring: The company may need to consolidate subsidiaries, establish a holding company, or refine its governance structure.

• Tax and Regulatory Review: Advisors ensure that all tax filings and licenses are up to date.

This phase is also when management begins preparing the prospectus, a detailed disclosure document required by SGX and the Monetary Authority of Singapore (MAS). The prospectus provides investors with key information about the company’s operations, financial performance, risks, and plans.

Phase 4: Preparing and Submitting the Application (2–4 Months Before Listing)

With due diligence complete, the company and its advisors proceed toward submitting a formal application.

Submission Process

1. Lodgment of Draft Prospectus: The Issue Manager or Sponsor submits a draft to SGX and MAS for review.

2. Feedback and Clarifications: Regulators may request revisions to ensure complete transparency and compliance.

3. Approval in Principle (AIP): Once SGX is satisfied, it issues an AIP, a conditional approval that allows the company to proceed with marketing and final preparations.

At this stage, the company also finalizes its corporate governance structure, appoints independent directors, and ensures adherence to the Singapore Code of Corporate Governance.

Phase 5: Marketing and Book-Building (1–2 Months Before Listing)

With the AIP in hand, the IPO moves into the marketing phase, often referred to as the roadshow.

What Happens Now

• Investor Roadshows: The company’s management presents to institutional and retail investors, highlighting its strengths, strategy, and growth potential.

• Book-Building Process: Underwriters gauge investor demand and determine the optimal pricing range for the shares.

• Public Communications: The PR and IR teams release press materials, conduct interviews, and secure media coverage to generate excitement and establish trust.

A well-executed marketing campaign can make a significant difference in the IPO’s success, influencing both pricing and post-listing performance.

Phase 6: Pricing, Allotment, and Listing Day (Week of the IPO)

This is the most exciting part of the journey, the transition from private to public.

Final Steps

1. Pricing and Allotment: Based on investor demand, the final offer price is set. Shares are then allocated to institutional and retail investors.

2. Final Prospectus Lodgment: The approved prospectus is registered with MAS.

3. Trading Commencement: The company’s shares officially debut on the SGX Mainboard or Catalist.

On listing day, senior management often participates in the Opening Bell Ceremony at SGX Centre,  a symbolic moment that marks the company’s official entry into public markets.

Phase 7: Post-Listing Obligations (Ongoing)

Going public is not the end of the journey; it’s the beginning of a new chapter. Once listed, the company must comply with ongoing regulatory and governance obligations.

Key Post-IPO Responsibilities

• Regular Reporting: Quarterly or semi-annual financial results must be disclosed to SGX and shareholders.

• Corporate Governance: Maintain transparency, board independence, and ethical standards.

• Investor Relations: Continuous engagement with investors and analysts helps sustain confidence and trading volume.

• Strategic Growth: Use IPO proceeds effectively to drive expansion and meet business objectives.

Strong post-listing performance is essential to maintaining share value and attracting long-term investors.

Conclusion: Clarity and Preparation Lead to IPO Success

The SGX IPO process may seem daunting, but with the proper preparation and advisory support, it becomes a structured and achievable journey. Every phase, from readiness assessment to public debut, plays a vital role in ensuring compliance, transparency, and investor trust.

Whether you’re listing on the Mainboard or the Catalist, success comes down to one principle: plan early, engage the right experts, and communicate your story effectively. With discipline and vision, your IPO can mark not just a listing milestone, but the beginning of a powerful growth era for your company.

The new engine of national competitiveness: Why sovereign venture studios must prioritise sector focus to lead in global innovation

A changing global economic logic for Sovereign Wealth Funds

In late 2025, the global economy is defined by slower long-term growth and increasingly fragmented trade. The IMF projects the G20’s medium-term growth to average below 3 percent, the weakest trajectory since the 2009 financial crisis, while more than 40 percent of global goods and services trade is now affected by technology and industrial-sovereignty policies. In this environment, nations that rely solely on commodity exports, advantageous geography, or financial reserves risk structural decline. The new axis of competition is the ability to produce and export frontier technology, not merely access it.

Sovereign wealth funds (SWFs) have adapted accordingly. Their mandate now extends beyond intergenerational capital preservation to the development of national innovation capacity. Venture studios, organisations that systematically originate and build companies, offer SWFs a mechanism to do so. When these studios operate with focused sector strategy, they enable sovereign capital not only to invest in innovation but to architect innovation ecosystems in domains that will define the next era of global value creation.

Sectoral focus as a mechanism for export power, not just innovation volume

Traditional venture capital allocates capital toward the fastest scaling markets and highest liquidity windows. Sovereign venture studios operate under a fundamentally different logic: they seek not only financial returns but the construction of export-oriented capability. Data across 14 sovereign-aligned studio ecosystems shows that studios concentrated in two to five clearly defined strategic sectors generate more than twice as much IP per dollar invested as generalist counterparts, sector-focused portfolios achieve ~74 percent seed-to-Series-A conversion, compared with ~46 percent in broad thematic portfolios, and countries with clear sector alignment experience significantly higher export uplift from venture creation than those attempting broad diversification.

Sector precision is therefore not restrictive. It compounds learning, infrastructure, and capability development, turning venture studios into industrial-competitiveness engines, rather than merely startup generators.

Why these sectors, and why they matter for export competitiveness

Although sovereign innovation ecosystems differ in size and economic structure, their sector priorities converge because certain domains determine who will lead the global economy.

Artificial Intelligence and Data Infrastructure

AI is not prioritised because it is fashionable, but because it is a general-purpose technology with economy-wide spillovers. The global AI opportunity is projected to add USD 15.7 trillion to GDP by 2030, with the AI infrastructure market growing from USD 35 billion in 2023 to more than USD 220 billion by 2030. Countries that do not control compute, data pipelines, and core models risk dependence on foreign vendors across virtually every industry. Venture studios focused on AI and data infrastructure allow SWFs to export AI-native capability rather than import it, securing an early position in a sector poised to dominate global productivity growth.

Agri-Tech and Food Systems

Food-system fragility has become a structural economic risk. The GCC imports roughly 85 percent of its food, and urbanising emerging markets are experiencing rising demand against finite arable capacity. Agri-tech is therefore a 9 percent compound-growth sector, driven by precision farming, controlled-environment systems, and water-efficiency technologies. Sector-focused venture studios transform food reliance into a competitive advantage: they reduce national exposure while producing technologies that other food-insecure markets demand.

Climate Technology and Industrial Decarbonisation

Decarbonisation has become a determinant of market access. Between now and mid-century, USD 7–9 trillion of additional climate-technology investment will be required to support the global transition. By 2030, most cross-border trade is expected to be conditioned by carbon-intensity regulations. Venture studios building hydrogen systems, electrified industrial processes, carbon-management tools, and low-carbon materials enable SWFs to convert the climate transition from compliance cost into an industrial export opportunity.

Digital Infrastructure and Cyber-Resilient Systems

Digital infrastructure, such as fibre, cloud, edge networks, identity, and cyber platforms, has a measurable effect on productivity and trade participation. It is also deeply geopolitical: digital dependency becomes economic and cybersecurity dependency. Studios focused on digital infrastructure allow SWFs to build foundational layers that increase productivity across all other tech-intensive sectors while developing cyber-resilient platforms that are globally licensable.

Health, Life Sciences, and Biotechnology

Life sciences represent one of the largest expanding technology markets: valued at USD 1.7–1.8 trillion in 2025, and projected to exceed USD 5 trillion by 2034. R&D spending, approaching USD 200 billion annually, reflects both high barriers to entry and durable demand. Venture studios in health analytics, diagnostics, therapeutics platforms, and bio-manufacturing create exportable deep-tech IP in a sector that compounds national capability and economic influence.

Financial Technology and Digital Financial Infrastructure

Fintech has become a structural pillar of the global financial system. Cross-border payments total nearly USD 200 trillion annually and are projected to rise toward USD 300 trillion by the early 2030s. Digital transaction systems could reduce global costs by ~USD 500 billion, disproportionately benefiting emerging economies. Venture studios specialising in payment rails, identity-linked transactions, risk analytics, and tokenisation enable SWFs to export digital financial architecture, extending both economic reach and geopolitical influence.

Across all six domains, the rationale is the same: sovereign venture studios focus on the sectors that other nations will eventually pay for.

How sector focus becomes global competitiveness

Sector-focused venture studios translate innovation into export advantage through four reinforcing mechanisms:

1. Talent concentration: specialised technical and commercial expertise accumulates, increasing ecosystem productivity and lowering venture-building cycle time.

2. Shared industrial infrastructure: labs, pilot sites, regulatory pathways, and specialised manufacturing become feasible and reusable across ventures.

3. Demand access and scale pathways: coordinated anchor-customer relationships accelerate adoption, shortening time to revenue and global entry.

4. IP and know-how compounding: scientific and digital assets remain domestic while scaling globally, increasing bargaining power in trade and partnerships.

The result is not incremental startup growth but the construction of an industrial capability that is internationally competitive.

Evidence from leading sovereign innovation ecosystems

This pattern becomes clearest when sovereign ecosystems are evaluated longitudinally.

• Singapore concentrated venture building in semiconductors, cybersecurity, and health analytics, producing companies now exporting deep technology across Asia and Europe.

• United Arab Emirates focused on industrial decarbonisation, maritime logistics, and industrial AI, shifting from commodity-driven growth toward the export of industrial technology and platforms.

• Saudi Arabia prioritised food systems, biotech and energy transition solutions, resulting in IP accumulation, high-skill employment and manufacturing capacity that serve regional and emerging markets.

In each case, capital alone was not the differentiator, but the sectoral clarity was.

Conclusion

Sovereign venture studios are no longer tools for launching startups; they are instruments for anchoring a country’s competitive position in the global economy. Sector focus is the mechanism that transforms venture building from entrepreneurial activity into an export-oriented industrial strategy. In a time defined by technological sovereignty, protectionism, and slow macroeconomic growth, the sovereign wealth funds that will shape the next phase of global competition are not those deploying capital broadly in innovation, but those deploying it precisely in the sectors that will define global value creation, and building companies capable of exporting that value to the world.

References

• Venture Studio Index — Sectoral Concentration and Innovation Efficiency Study (2024)

• International Forum of Sovereign Wealth Funds — National Priorities and Innovation Allocation Trends (2023–2025)

• OECD Science, Technology and Industry Outlook (2024)

• Boston Consulting Group — Industrial Strategy and Venture Studio Operating Models (2022)

Governance as an innovation enabler: How sovereign wealth fund venture studios can design for long-term success

A shift in the role of sovereign capital

Sovereign wealth funds (SWFs) were historically evaluated based on their financial stewardship, including prudent diversification, intergenerational wealth protection, and risk-adjusted returns. Today, their performance is evaluated along an expanded axis. In economies defined by artificial intelligence, energy transition, water and food resilience, logistics automation, and cybersecurity, national competitiveness is determined not only by financial strength but also by the capacity to produce innovation domestically.

This new expectation has prompted many SWFs to shift from passive participation in global innovation through VC commitments to direct creation of domestic innovation capacity. Venture studios, which systematically originate and build companies from the ground up, have therefore become strategic instruments. They allow sovereign funds not just to benefit from emerging technologies, but to create the companies, capabilities, and IP that anchor those technologies at home.

Yet this evolution introduces a unique design tension. A sovereign venture studio must innovate with the speed of a private venture builder while operating under the accountability, transparency, and long-horizon responsibility of sovereign capital. In this setting, governance is not administrative; it is the core mechanism that determines whether innovation velocity is enabled or restrained.

The performance paradox in sovereign innovation

Sovereign venture studios operate at the intersection of innovation logic and public capital logic. Without careful governance design, the two can work against one another. Data from 47 international venture studios, including sovereign ecosystems in Singapore, the UAE, Saudi Arabia, Finland, and Norway, reveals a recurring pattern:

1. Studios with high procedural oversight (frequent approvals, committee-based decision-making, constrained autonomy) demonstrate 36–48% longer validation cycles, lower seed-to-Series-A conversion (≈48% vs ≈72% in autonomous studios), and 3–5x slower customer adoption due to procurement or compliance delays

2. Studios with excessive autonomy but limited sovereign alignment show strong financial performance, but <20% retention of IP and specialised talent domestically, and negligible contribution to long-term national competitiveness.

Innovation underperforms when governance protects capital by restricting autonomy; national outcomes underperform when autonomy is unconstrained by strategic guardrails.

The implication is clear: sovereign venture studios do not fail because governance is strong or weak; they fail when governance is structured in a way that structurally slows innovation or structurally decouples innovation from national strategy.

Effective governance is therefore not about control; it is about enabling innovation to occur repeatedly, quickly, and strategically.

Operating models: the real enabler is decision-cycle design

Sovereign venture studios typically adopt one of three models, but academic research suggests the model labels themselves are less important than their impact on decision-cycle time, talent autonomy, and venture selection logic.

1. Integrated model (fully embedded within sovereign or state institutions) delivers strong national alignment and policy integration but tends to introduce multi-layered approvals. In deep-tech studios, where technological windows narrow quickly, every additional four weeks of approval latency reduces Series-A probability by 9–11% because customer pilots, talent attraction, and capital syndication are time-sensitive.

2. Semi-autonomous model (sovereign-funded but independently governed) consistently exhibits the highest innovation velocity. Validation-to-incorporation cycles average 18–24 months, compared with 36–48 months in integrated systems. Co-investment uplift is stronger as well: 1 sovereign dollar attracts ≈ 2.4 private dollars, compared with ≈ 1.1 in non-autonomous studios.

3. Joint public–private model provides privileged access to research (universities), infrastructure (sovereign entities), or early demand (corporates), powerful enablers of applied innovation. However, unless responsibility and decision rights are clearly apportioned, strategic dilution emerges, and commercial imperatives can crowd out sovereign priorities, or vice versa.

What differentiates the highest-performing sovereign venture studios is not the organisational type, but whether governance enables rapid, evidence-based decision cycles within clearly defined strategic boundaries.

Governance as the Infrastructure of Innovation Velocity

Across the highest-performing sovereign venture studios globally, five governance mechanisms repeatedly correlate with innovation speed and portfolio resilience.

1. Boards built for capability, not representation
   The strongest predictor of venture success is board competence in venture development. Studios governed by boards dominated by finance and policy professionals, without deep-tech or venture-building expertise, show 2.5x higher post-Series-A failure rates. High-performing boards combine sovereign stewardship with operators who have scaled companies in relevant sectors.

2. Strategic guardrails and operational autonomy
   The most successful sovereign studios use governance to define what must be achieved, not how it must be done. Strategy committees set thematic priorities (e.g., cybersecurity, agri-biotech, climate tech) and ethical boundaries (e.g., IP sovereignty, talent retention), while day-to-day venture decisions remain independent. Innovation velocity rises because decisions follow evidence, not permission chains.

3. Balanced performance metrics that capture capability creation.
   If IRR is the dominant KPI, studios drift toward commercial optimisation at the expense of capability creation. If national outcomes dominate, they drift toward research orientation. Balanced scorecards, capital leverage, IP retained domestically, high-skill jobs, export readiness, and Series-A success which correlate with 40–60% greater portfolio resilience after five years.

4. Risk management is designed for experimentation, not risk elimination.
   Innovation failure cannot be avoided; what matters is where failure occurs. Milestone-based funding, stage-gate resource allocation, and independent validation reduce capital at risk while protecting innovation speed. Sovereign studios that delay pivots or terminations due to bureaucratic pressure consume 2–3x more capital per failed venture.

5. Incentives that reward venture-building outcomes.
   When compensation and promotion are tied to compliance milestones, leadership behaviour becomes administrative. When incentives reward validated traction, co-investment attraction, IP generation, and talent development, leadership behaves like venture builders, with a direct impact on portfolio performance.

Together, these mechanisms demonstrate that governance is not about constraining innovation; it is the operating architecture that makes innovation repeatable, accountable, and fast.

Evidence from sovereign innovation ecosystems

The causal relationship between governance and innovation velocity is visible in sovereign ecosystems that have already scaled venture-building.

1. Singapore demonstrates the power of strategic alignment with autonomy. After introducing venture-building programmes designed to commercialise national research strengths, the conversion of publicly funded deep-science into domestic commercial ventures increased significantly, especially in cybersecurity, medical analytics, and industrial AI. Venture capital did not disappear; rather, VC entered later, after validation, reducing sovereign capital at risk and accelerating scaling.

2. United Arab Emirates illustrates governance for demand-driven innovation. Semi-autonomous studios launched with structured early-customer access to national champions, shrinking time-to-revenue from 3–5 years to 12–24 months. Innovation velocity increased not through subsidy, but through governance that enabled customer access, rapid decision cycles, and commercial agility.

3. Saudi Arabia and Qatar demonstrate capability-formation governance. By aligning incentives and KPIs around domestic IP creation, talent development, and supplier emergence, not financial return alone, sovereign studios accelerated capacity in biotech, food security, and industrial decarbonisation. Over five years, these studios delivered more than 220 patents, 14,000 high-skill jobs, and measurable import-dependence reductions in priority sectors.

Across all three cases, innovation outcomes vary, but the presence of governance that enables innovation is the common determinant of success.

Conclusion

The transition from sovereign investing to sovereign innovation is reshaping the role of SWFs. The determining factor in sovereign venture studio performance is not capital volume, sector targeting, or deal flow; it is governance design. When governance restricts studio autonomy through procedural oversight, innovation slows. When studios are left entirely unconstrained, sovereign value dissipates. When governance is structured to create strategic focus while empowering evidence-based autonomy, venture studios become repeatable engines of innovation and capability formation.

For sovereign wealth funds, the underlying realisation is increasingly clear: governance is not the cost of innovation, governance is the infrastructure that makes innovation possible.

As the next decade of economic competition is defined not by access to innovation but by the ability to produce it domestically and repeatedly, the sovereign funds that succeed will be those that design venture studios capable of operating with the discipline of financial stewards and the agility of entrepreneurial builders.

References

• Venture Studio Index — Global Operational Benchmarking Report (2024)

• IN-Depth Sovereign Innovation Consortium — Governance & Operating Models for Sovereign Venture Studios (2023)

• Big Venture Studio Research — Survival Ratio & Capital Efficiency Study (2024)

• International Forum of Sovereign Wealth Funds (IFSWF) — Innovation Allocation and Direct Venture Participation (2022–2024)

• Boston Consulting Group — The Venture Builder Model for Principal Investors (2022)

The Corporate Governance Gap: Getting Your House in Order for an SGX Listing

For companies aspiring to list on the Singapore Exchange (SGX), strong financial performance and growth potential are just the starting points. What increasingly separates successful IPO candidates from those that fall short is something less tangible but far more fundamental: corporate governance.

Corporate governance defines the structures, systems, and values through which a company is directed and controlled. It ensures that leadership decisions serve not only the founders or executives, but also shareholders, employees, customers, and society at large. As global investors become more discerning and regulatory expectations continue to rise, good governance has become a non-negotiable foundation for accessing public capital, especially in Singapore’s highly transparent marketplace.

This article explores why corporate governance matters so much for an SGX listing, what the key expectations are, and how companies can bridge governance gaps before going public.

1. Why Corporate Governance Matters in the SGX Context

Singapore is recognized worldwide for its robust legal system, transparent capital markets, and investor protection frameworks. The SGX Listing Rules and the Singapore Code of Corporate Governance set a high bar not as a barrier, but as a benchmark that fosters long-term trust and resilience.

For investors, governance equals confidence

Investors in Singapore, from sovereign wealth funds like GIC and Temasek to institutional and retail investors, view governance as a signal of credibility and sustainability. A company with strong governance is seen as better equipped to handle risks, protect shareholder interests, and deliver consistent returns.

For issuers, governance reduces risk

Good governance practices also benefit companies directly. They:

• Minimize legal and reputational risks.

• Improve decision-making transparency.

• Strengthen internal controls and accountability.

• Attract quality institutional investors who value compliance and ethics.

In essence, governance is not just about ticking boxes, it’s about building a resilient, investable organization.

2. Understanding the “Governance Gap”

Many private or family-owned companies aiming for an IPO face what’s called a “governance gap.” This gap arises when internal structures, policies, or controls are not yet aligned with public market expectations.

Common governance gaps include:

• Founder-dominant boards with limited independent oversight.

• Lack of documented internal controls or risk management systems.

• Inadequate disclosure practices around financial or ESG performance.

• Unclear succession planning or leadership accountability structures.

Bridging this gap before listing isn’t optional; it’s essential. The SGX conducts rigorous due diligence, and investors scrutinize governance standards as part of their valuation and risk assessments.

3. Key Governance Requirements for an SGX Listing

The SGX Listing Manual and the Code of Corporate Governance (2018) outline the key expectations for listed companies. While not all rules apply equally to Mainboard and Catalist listings, the guiding principles remain the same.

a) Board Independence and Diversity

At least one-third of the board should be independent directors, ensuring objective oversight. Increasingly, SGX promotes board diversity in terms of gender, expertise, and experience to enhance decision-making.

b) Accountability and Transparency

Listed companies must maintain timely, accurate, and balanced disclosure of material information, including quarterly or semi-annual financial results, related party transactions, and risk exposures.

c) Internal Controls and Risk Management

Robust systems for financial reporting, internal audits, and risk assessment are mandatory. Boards must ensure that internal controls are effective and regularly reviewed.

d) Remuneration and Alignment

Executive and board remuneration should be transparent and aligned with the creation of long-term shareholder value. Excessive or poorly structured pay packages can raise red flags.

e) ESG and Sustainability Reporting

Since 2022, the SGX has required mandatory climate-related disclosures for certain sectors and encourages comprehensive ESG reporting. Sustainability governance is fast becoming a mainstream investor requirement.

4. How to Get Your House in Order

Preparing for an SGX listing involves transforming governance culture from informal to institutional. Here’s how companies can get started:

Step 1: Conduct a Governance Audit

Begin by assessing your current practices against SGX requirements. Identify gaps in board composition, internal policies, reporting structures, and compliance procedures. External consultants or legal advisors can assist with this review.

Step 2: Professionalize the Board

Appoint independent directors with relevant industry, legal, or financial expertise. Ensure board committees' audit, risk, and remuneration are appropriately structured and chaired by qualified members.

Step 3: Strengthen Internal Controls

Implement standardized processes for financial management, risk monitoring, and compliance. Adopt internal audit frameworks that ensure accountability at all levels.

Step 4: Enhance Disclosure and Communication

Invest in transparent investor relations (IR) systems. Train leadership to communicate with clarity and consistency both during the IPO process and post-listing.

Step 5: Embed ESG Governance

Integrate sustainability into strategy and operations. Establish an ESG committee to oversee metrics, goals, and reporting. This signals a forward-looking, responsible business model to investors.

5. Case Example: From Family Business to Public Company

Consider a mid-sized logistics company in Southeast Asia preparing for a listing on the SGX Catalist. Initially, decision-making was centralized around the founder, with limited documentation or external oversight.

Through a structured pre-IPO governance program, the company:

• Reconstituted its board to include independent directors.

• Adopted a whistleblower policy and internal audit framework.

• Published its first ESG report highlighting carbon reduction goals.

• Established a transparent performance-based remuneration structure.

The result? It not only secured SGX approval but also attracted strong investor interest during its IPO roadshow, thanks to improved credibility and professional governance standards.

6. The Payoff: Governance as a Value Driver

Strong corporate governance doesn’t just reduce risk, it actively enhances value. Research shows that well-governed companies enjoy:

• Lower capital costs due to investor trust.

• Higher valuation multiples are associated with greater transparency and accountability.

• Better long-term performance through sustainable decision-making.

In Singapore’s market, where integrity and compliance are deeply valued, governance excellence can become a competitive advantage rather than a regulatory burden.

Final Thought: Building Trust Before You Go Public

An SGX listing is not merely a financial event; it’s a trust event. Companies that demonstrate strong governance send a powerful message: they are prepared to be held accountable, operate transparently, and create long-term value for all stakeholders.

Bridging the corporate governance gap is therefore more than a compliance exercise; it’s an investment in your company’s future reputation and resilience.

In a world where capital follows confidence, getting your house in order isn’t just preparation, it’s the key to unlocking sustainable success in Singapore’s trusted capital markets.

Valuation Realities: How Companies are Priced for an IPO in Singapore

Going public on the Singapore Exchange (SGX) is a significant milestone that signifies maturity, ambition, and readiness for regional and global expansion. However, before the bell rings on listing day, one of the most crucial and often misunderstood steps in the IPO journey is determining the company's actual worth.

Valuation is not just a number; it’s a narrative supported by financial evidence, market context, and investor perception. For founders, CFOs, and investors alike, understanding how valuation is established in the Singapore IPO market can make the difference between a successful debut and a disappointing reception.

Why Valuation Matters

IPO valuation determines the offer price at which shares are sold to investors. It directly affects the amount of capital a company raises and how the market perceives its potential. A valuation that is too high can result in poor post-listing performance if investor expectations aren’t met. Too low, and the company leaves significant value on the table.

In Singapore’s capital markets, where institutional investors dominate early allocations, valuation isn’t just about numbers; it’s about credibility, governance, and long-term growth prospects.

Valuation Approaches in Singapore IPOs

The SGX doesn’t prescribe a single method for determining valuation. Instead, advisors, underwriters, and investors rely on multiple techniques to triangulate a fair and market-acceptable price. The most common approaches include:

1. Comparable Company Analysis (Comps)

This method benchmarks the IPO candidate against similar listed companies, ideally in the same sector and region. Analysts compare valuation multiples such as Price-to-Earnings (P/E), EV/EBITDA, or Price-to-Book (P/B) ratios to arrive at a relative valuation.

For example, a Singapore tech firm can be compared to its peers in other Southeast Asian countries or those listed on the Hong Kong Stock Exchange with similar business models and growth profiles. Adjustments are then made to account for size, market share, or risk differentials.

2. Discounted Cash Flow (DCF) Analysis

DCF analysis projects a company’s future cash flows and discounts them back to their present value using a risk-adjusted rate. This method is widely used when companies have stable and predictable earnings or strong visibility into their future performance.

However, it’s also susceptible to assumptions such as growth rates, discount rates, and terminal values, making it less reliable for early-stage or fast-evolving businesses.

3. Precedent Transaction Analysis

This approach examines recent M&A or IPO transactions in the same industry to understand the multiples that investors have been willing to pay. While useful, the data can be limited, especially in niche sectors or volatile markets.

4. Book-Building and Market Testing

In Singapore, IPO pricing often incorporates a book-building process, where institutional investors indicate the price and quantity of shares they’re willing to purchase. The final offer price is determined based on this demand, ensuring alignment with market sentiment.

Factors That Influence IPO Valuation

Beyond the pure numbers, a variety of qualitative factors influence how investors perceive value. In the SGX context, these include:

1. Financial Performance and Growth Potential

Revenue trajectory, profit margins, and return on equity continue to be key benchmarks. Companies with strong earnings visibility or recurring revenue models often attract premium valuations.

2. Corporate Governance and Transparency

Singapore’s capital markets place a high premium on robust governance structures, independent boards, and transparent reporting. Investors are more likely to reward companies that demonstrate ethical practices and substantial compliance with SGX’s governance standards.

3. Industry Trends and Sector Outlook

Sectors aligned with macroeconomic tailwinds, such as green finance, fintech, healthcare, and logistics, tend to command stronger valuations. Companies positioned as market leaders in emerging industries often benefit from scarcity premiums.

4. Brand Credibility and Market Perception

Investor confidence can also hinge on brand reputation, customer loyalty, and the perceived leadership quality of the management team. A trusted brand with a clear vision can meaningfully influence valuation multiples.

5. Market Timing

Global and regional market sentiment can significantly shift valuation dynamics. During bullish cycles, investor appetite for new listings increases, leading to higher valuations. Conversely, in uncertain economic conditions, conservative pricing tends to prevail.

SGX Mainboard vs. Catalist: Valuation Implications

Companies listed on the Mainboard generally have established track records and profitability, resulting in valuations supported by their historical performance.

By contrast, Catalist, the exchange’s growth board for high-potential but smaller companies, tends to focus more on growth prospects than earnings history. Valuation discussions here are often more forward-looking, emphasizing scalability, innovation, and market opportunity.

For both boards, transparency and a well-communicated equity story are key to achieving investor trust and fair valuation.

Role of Advisors in the Valuation Process

Valuation is rarely determined in isolation. It’s a collaborative process involving multiple stakeholders:

• Financial Advisors and Underwriters: Conduct financial modeling, peer analysis, and investor soundings to guide pricing strategy.

• Legal and Regulatory Advisors: Ensure disclosures and governance meet SGX and MAS (Monetary Authority of Singapore) requirements.

• Investor Relations Teams: Help shape and communicate the equity story effectively to the investment community.

Together, this team ensures that valuation is defensible, transparent, and aligned with long-term investor expectations.

Common Valuation Pitfalls

Several pitfalls can derail even the most promising IPO:

• Over-optimistic projections leading to inflated valuations and post-listing corrections.

• Ignoring governance and compliance issues which can erode investor trust.

• Underestimating market conditions, particularly during periods of volatility or rising interest rates.

• Lack of clear communication about growth drivers, risks, or use of proceeds.

Companies that avoid these pitfalls often find themselves better positioned for sustainable post-IPO performance.

Balancing Ambition with Realism

The art of IPO valuation lies in balancing ambition with realism. Companies must tell a compelling growth story, supported by credible financials and a transparent governance framework. Investors, on the other hand, seek evidence that management can deliver on their promises.

In the Singapore context, where investor sophistication and regulatory rigor are high, a fair and justifiable valuation enhances credibility and long-term shareholder confidence.

Final Thoughts: Beyond the Listing Day

Ultimately, valuation is not an endpoint but a starting point. The actual test of a company’s worth unfolds after listing, through its ability to execute strategy, deliver earnings, and maintain transparent communication with investors.

For companies aspiring to list on the SGX, understanding the realities of valuation is essential. It ensures that when the market opens on the debut day, the price on the screen reflects not only the financial potential but also the trust and confidence of investors who believe in the company’s story.

Why sovereign wealth funds are turning toward venture building: The new playbook for economic competitiveness

A new mandate for sovereign investment

For most of their history, sovereign wealth funds (SWFs) have been evaluated by a narrow set of financial metrics: risk-adjusted returns, capital preservation, and global portfolio diversification. Technology investing entered its remit gradually, initially through private equity, and later through venture capital, as innovation became the world’s most reliable source of value creation. But in the last decade, expectations placed on sovereign funds have shifted profoundly. Financial performance remains essential, yet it is increasingly necessary, but not sufficient. In the era defined by technological rivalry, supply-chain fragility, and rapid industrial transformation, sovereign funds are now judged not only by the capital they generate but also by the capabilities they help build at home.

The shift is driven by a simple reality: national prosperity today depends less on access to advanced technologies than on the capacity to produce them domestically. While venture capital exposure has delivered strong returns for sovereign funds, it has not consistently built domestic innovation ecosystems. The problem is not performance; it is where that performance accrues.

The geography of venture capital and its value creation

The startups that receive sovereign funding generate economic opportunity where they operate, not where the capital originates. Between 2012 and 2020, Temasek more than doubled its participation in foreign VC investments. Yet Singapore’s contribution to global deep-tech commercialisation remained below 3%, and most breakthroughs produced in the country’s research institutions were commercialised elsewhere. Saudi Arabia deployed more than USD 5 billion into global VC and growth funds within the same period, producing excellent financial outcomes; however, over 90% of the resulting patents, specialist R&D labor, and supplier networks were formed abroad rather than domestically.

This is not a flaw in venture capital; it is a feature. VC allocates capital to the fastest-scaling markets, not to the markets that most need capability development. It rewards liquidity, not industrial strategy. Venture capital helps sovereign funds profit from innovation, but it does not help their economies become the source of innovation.

Why venture building offers a structural alternative

Venture building, also known as the venture studio model, has emerged as a strategic instrument for sovereign investors because it reverses the causality of innovation. Instead of waiting for entrepreneurs to propose ideas, venture studios originate, validate, and construct companies from scratch, based on demonstrable market evidence and aligned to domestic economic priorities. The model filters failure early, when it is still inexpensive, and concentrates capital only once validation has occurred.

The performance gap is substantial. Across multiple international benchmarks, studio-built ventures achieve portfolio IRRs averaging ~53%, compared with ~21% for traditional VC-backed startups, seed-success rates of ~84% (versus ~55%), series-A conversion of ~72% (versus ~42%), and time to Series-A of ~25 months (versus ~56 months).

The difference is not marginal. It reflects a different risk architecture: venture capital deploys money to discover evidence; venture studios generate evidence before deploying money. For sovereign funds, whose investments face public accountability and long-horizon national implications, that sequencing matters.

Singapore: From research power to commercial power

Singapore offers a striking example of how venture building can change the economic trajectory of innovation. Between 2017 and 2023, the country generated over SGD 20 billion in deep-science research output, yet a small fraction translated into Singapore-headquartered commercial ventures. The bottleneck was not the quality of science; it was the absence of a mechanism connecting scientific breakthroughs to commercial and industrial outcomes.

Sovereign-backed venture studios were introduced to close this gap by systematically designing companies around the areas in which Singapore has scientific leadership, for example, semiconductors, cybersecurity, medical analytics, and industrial AI. These ventures were structured not only for growth but to retain IP domestically, create specialised high-wage employment, and position Singapore as an exporter rather than consumer of frontier technology. Venture capital did not disappear in this system. It entered later, once customer traction had been established, turning deep-tech research from a long-term cost into a source of internationally competitive capability.

UAE: Building the suppliers of the future industrial economy

United Arab Emirates adopted venture building with a different ambition: to create domestic suppliers for the industries that will anchor its future economic model. National champions in energy, logistics, and aviation are already globally competitive, but future industrial value chains, such as in hydrogen technology, robotics, automation, and maritime digitisation, require a level of innovation density that the domestic startup ecosystem could not yet produce organically.

Venture studios addressed this gap by building companies to serve these strategic industries and launching them with guaranteed early-stage demand from large sovereign customers. Where a deep-tech startup elsewhere might take three to five years to secure its first enterprise contract, UAE-backed studio ventures have achieved revenue in 12–24 months because pilot environments with ADNOC and DP World were engineered from inception. Venture building thus became not merely an innovation initiative, but a commercial-proof industrial-diversification strategy.

Saudi Arabia and Qatar: accelerating capability formation

Saudi Arabia and Qatar pursued venture building as a way to shorten the time required to build frontier-sector capabilities. Rather than wait decades for ecosystems to develop organically, venture studios were used to generate repeated entrepreneurial cycles that accumulate technical talent, IP, and supplier bases far more rapidly.

In Saudi Arabia, venture building in food security, biotech, and climate technology has produced more than 14,000 high-skill jobs and over 220 patents across five years, while reducing dependency on imported industrial technology in targeted segments. In Qatar, studio initiatives in irrigation systems, logistics, and energy storage contributed to import-dependence reductions of 18–32% in selected categories within four years. These are not startup metrics but macroeconomic outcomes.

The strategic realisation among sovereign funds

Although Singapore, the UAE, Saudi Arabia, and Qatar deploy venture building for different reasons, commercialising research, developing domestic suppliers, and accelerating capability formation, the insight underlying their decisions is the same that venture capital allows sovereign funds to benefit from innovation generated elsewhere, and to create innovation capacity within their own economies.

The implication is that the question facing sovereign funds is not whether VC is attractive; it is whether VC alone is sufficient to deliver long-term strategic advantage. The evidence increasingly suggests it is not. Venture capital captures value from innovation. Venture building creates the conditions under which innovation, including its economic benefit, can be domestically anchored.

Conclusion

The global economy is entering a phase in which competitive advantage will depend less on the ability to import advanced technologies and more on the ability to produce frontier innovation domestically and repeatedly. For sovereign wealth funds, the rise of venture building is not a deviation from traditional investment logic but its evolution. As energy systems transform, as food security and industrial resilience rise in strategic importance, and as artificial intelligence reshapes every value chain, the sovereign funds shaping the next decade will be those that use capital not only to generate returns but to generate capability.

References

• Venture Studio Index: Global Performance Benchmark Report (2024)

• Bundl: Venture Building Benchmark and Series-A Conversion Report (2023)

• Big Venture Studio Research: Survival Ratio Analysis of Venture-Built Startups (2024)

• International Forum of Sovereign Wealth Funds (IFSWF): Innovation, Allocation, and Domestic-Capability Trends (2022–2024)

Boston Consulting Group: The Venture Builders Strategy for Principal Investors (2022)

Telling Your Story: Crafting a Compelling Equity Narrative for Singaporean Investors

In today’s investment landscape, capital flows not just to numbers, but to stories. A company’s equity narrative has become as important as its financial performance. Whether you are a growing SME preparing for an SGX listing or a multinational expanding your presence in Asia, how you present your story to investors in Singapore can greatly influence your valuation, investor trust, and long-term market perception.

Singapore’s capital markets are renowned for their sophistication, transparency, and data-driven decision-making. Even in such a rational environment, a strong narrative serves as the bridge between financial metrics and investor confidence. This article explores the importance of an equity narrative, how to construct one effectively, and what Singaporean investors seek when evaluating a company's story.

1. Why an Equity Narrative Matters

An equity narrative is the strategic story a company tells to convey its purpose, potential, and positioning in the market. It goes beyond the financial statements to explain why the company exists, how it creates value, and what its growth journey looks like.

A compelling equity narrative:

1. Builds investor confidence: It connects data to vision, helping investors understand the company’s direction.

2. Differentiates your brand: In a market crowded with similar financial profiles, your story can set you apart.

3. Supports valuation: A strong narrative can justify premium valuations by articulating long-term strategic potential.

4. Engages diverse stakeholders: From analysts to institutional investors, a unified story ensures consistent messaging across all audiences.

In Singapore’s tightly knit investment community, clarity and credibility in communication are often what distinguish a promising company from a trusted one.

2. Understanding Singaporean Investors

Before crafting your story, it’s essential to understand your audience. Singapore’s investor base includes institutional funds, family offices, sovereign wealth entities, and an active network of retail investors. These stakeholders share some key traits:

1. Analytical Thinking: Investors expect stories grounded in facts and financial discipline.

2. Focus on Sustainability: ESG (Environmental, Social, Governance) values play a growing role in investment decisions.

3. Regional Perspective: Singaporean investors think regionally, valuing companies with scalable growth strategies in Asia.

4. Trust in Transparency: Clear disclosures and consistent performance updates reinforce credibility.

In short, investors in Singapore are drawn to stories that are ambitious yet accountable — visionary but backed by measurable execution.

3. The Core Elements of a Strong Equity Narrative

A successful equity story rests on three pillars: Purpose, Performance, and Potential. Together, they form the backbone of your communication strategy.

Purpose: Why You Exist

Investors want to understand your company’s mission beyond profits. What problem are you solving? Why does your company matter in the market?
Example: A renewable energy company might position itself as “empowering Southeast Asia’s transition to sustainable energy independence.”

Performance: How You Deliver

This is where data and credibility converge. Share evidence of execution — revenue growth, margins, partnerships, or user adoption — to validate your story.
Example: “Over the past three years, we’ve achieved a 25% compound annual growth rate while maintaining a 40% reinvestment into R&D.”

Potential: Where You’re Going

This section captures your future vision. Define your roadmap — market expansion, product innovation, or regional scaling — and link it to measurable milestones.
Example: “Our goal is to expand into three new ASEAN markets by 2026, leveraging Singapore as our financial and strategic hub.”

When these three elements are woven together authentically, investors see not just a company, but a coherent journey.

4. Tailoring Your Narrative for the Singapore Market

Singaporean investors appreciate precision, governance, and a regional perspective. To connect effectively, companies should craft messages that align with local expectations and values.

Speak the Language of Governance

Highlight your commitment to strong governance, compliance, and transparency. These values resonate deeply in Singapore’s investor culture and align with SGX requirements.

Example: “We operate under robust internal controls and independent board oversight to ensure accountability and protect shareholder interests.”

Showcase Regional Scalability

Investors in Singapore often look for regional growth stories that start locally but expand across Asia.

Example: “From our base in Singapore, we’re building scalable solutions for the wider ASEAN market — where digital adoption is growing at double-digit rates.”

Integrate ESG into the Story

Singapore has emerged as a regional leader in ESG finance. Investors increasingly expect ESG integration, not as a checkbox, but as a value driver.

Example: “Our sustainability initiatives are not only ethical choices but strategic levers to attract long-term, quality capital.”

Humanize the Vision

Numbers alone don’t inspire; people do. Introduce your leadership team, including their values and strategic disciplines. Humanizing your story creates a relatable, trustworthy impression.

5. Channels for Telling Your Equity Story

Your equity narrative should be consistent across all touchpoints — from investor roadshows to annual reports and media engagements. Consider these communication channels:

1. Investor Presentations: Blend financial highlights with storytelling visuals.

2. Annual and Sustainability Reports: Reinforce credibility through detailed disclosures and impact metrics.

3. Media and Thought Leadership: Publish op-eds or participate in panels to shape perception.

4. Digital Platforms: Utilize your website, LinkedIn, and investor relations pages to regularly communicate updates.

Consistency across channels strengthens recognition and investor confidence.

6. Common Mistakes to Avoid

Even strong companies can undermine their narrative through missteps. Watch out for:

1. Overpromising: Avoid exaggerated projections or unverified claims.

2. Inconsistency: Sending contradictory messages across teams can erode credibility.

3. Neglecting Follow-Up: Investors value updates; silence after the IPO can create uncertainty.

4. Ignoring Feedback: Singaporean investors appreciate dialogue — listen, adapt, and evolve your story over time.

Remember, trust is built gradually through authenticity and reliability.

7. The Payoff: Why a Strong Equity Narrative Drives Long-Term Value

A compelling narrative doesn’t just attract investors, it keeps them. When your story aligns with financial results and long-term vision, it creates loyal shareholders, smoother fundraising rounds, and resilience during market fluctuations.

Moreover, companies with clear, credible stories tend to outperform peers in valuation multiples, as investors reward clarity of purpose and direction.

In Singapore’s dynamic financial hub, where capital is both plentiful and discerning, storytelling becomes a strategic differentiator. The best narratives combine substance, strategy, and sincerity.

Conclusion: Turning Numbers into Narrative

Ultimately, your equity narrative is the lens through which investors perceive your value. In a market like Singapore, where governance, growth, and innovation intersect, the story you tell determines the confidence you earn.

A well-crafted narrative transforms financial data into a vision investors can believe in. It shows not just what your company does, but why it matters, and how it will grow.

In the world of equity markets, facts inform but stories inspire. In Singapore’s vibrant financial ecosystem, inspiration is often the spark that turns investment interest into a long-term capital commitment.

Comprendre le modèle VC-as-a-Service : au-delà du simple capital

Le capital-risque ne se résume plus à injecter de l’argent. Le modèle VC-as-a-Service offre un soutien aux startups qui va bien au-delà du simple capital. Vous allez comprendre comment cette approche combine innovation stratégique et croissance durable pour changer la donne. Suivez le guide pour saisir les avantages concrets de ce modèle.

Le Modèle VC-as-a-Service

Le modèle VC-as-a-Service redéfinit la manière dont le capital-risque soutient les startups. Allons plus loin pour voir comment cette approche innovante transforme la relation entre investisseurs et entrepreneurs.

Comprendre le Concept de VC-as-a-Service

Le VC-as-a-Service n’est pas juste un concept, c’est une révolution. Il offre aux startups bien plus que des fonds. Ici, les investisseurs agissent comme partenaires stratégiques. Imaginons une startup en pleine croissance. Vous recevez du capital, mais aussi des conseils stratégiques pour naviguer dans un marché complexe. Avec des fonds spécialisés, vous êtes armés pour affronter les défis avec un soutien complet. Ce modèle est en train de transformer l'industrie. Apprenez comment ici.

Pourquoi Choisir VC-as-a-Service ?

Pourquoi ce modèle séduit-il tant ? Car il va au-delà des attentes traditionnelles. Le VC-as-a-Service offre une flexibilité inégalée. Pour une startup, choisir ce modèle, c'est opter pour une trajectoire de croissance rapide et soutenue. Les investisseurs bénéficient également d'une vision claire et d'un alignement stratégique. Si vous êtes un entrepreneur cherchant à maximiser vos chances de succès, ce modèle vous donne les outils pour réussir. Lisez comment cela fonctionne.

Avantages pour les Entrepreneurs

Passons aux avantages concrets pour les entrepreneurs. Avec le VC-as-a-Service, vous sentez immédiatement la différence.

Accès au Capital-Risque et au Soutien

Ce modèle offre un accès privilégié à des capitaux tout en fournissant un soutien continu. Imaginez un entrepreneur qui lutte pour lever des fonds tout en naviguant sur des marchés compétitifs. Grâce au VC-as-a-Service, vous obtenez non seulement des ressources financières, mais aussi des conseils d'experts pour vous aider à surmonter les obstacles. En vous associant à des partenaires qui comprennent vos besoins, vous pouvez concentrer vos efforts sur ce qui compte vraiment : innover et croître. Participez à nos événements pour en savoir plus.

Innovation Stratégique pour la Croissance Durable

L’innovation stratégique est au cœur de ce modèle. Cela signifie que vous ne vous contentez pas de suivre des tendances, vous les créez. Avec le soutien adéquat, votre startup peut explorer de nouvelles voies et repousser les limites. Pensez à Mandalore Partners, qui se spécialise dans l'InsurTech et l'IndustryTech. En utilisant leur expertise, vous pouvez transformer votre vision en réalité. Ce partenariat ne se limite pas à la finance, il s’étend à une véritable collaboration pour un impact durable. Découvrez notre approche ici.

Avantages pour les Investisseurs

Les investisseurs, ce modèle n'est pas seulement une opportunité, c’est une nouvelle norme.

Opportunités dans les Startups Prometteuses

Investir dans des startups prometteuses offre de grandes opportunités. Le modèle VC-as-a-Service vous permet de diversifier vos investissements en donnant accès à des entreprises à fort potentiel. En travaillant avec des experts qui connaissent le marché, vous pouvez identifier les meilleures opportunités. Cela réduit les risques et augmente vos chances de succès. De plus, avec des fonds spécialisés, vous bénéficiez d’une meilleure visibilité sur l’avenir. En savoir plus sur l'impact potentiel.

Soutien aux Startups et Collaboration 🤝

La collaboration est au cœur du succès. Avec le VC-as-a-Service, vous ne financez pas seulement une entreprise, vous soutenez son développement. Cela crée une relation symbiotique où les deux parties prospèrent ensemble. Votre rôle ne se limite pas à un simple financement ; vous êtes un partenaire actif dans la croissance de l'entreprise. Dans un monde où l'innovation est clé, être un investisseur proactif peut faire toute la différence. Découvrez comment vous pouvez contribuer.

🎯 Profitez de nos services de conseil stratégique pour booster votre croissance ! 🚀

Dans l'écosystème actuel, le modèle VC-as-a-Service est plus pertinent que jamais. En adoptant cette approche, vous vous positionnez pour une croissance durable tout en favorisant l'innovation. Ne laissez pas passer cette chance d'être à la pointe du changement.

Assembling Your A-Team: The Key Advisors for a Successful Singapore IPO

Going public is one of the most significant milestones in a company's growth journey. An Initial Public Offering (IPO) not only opens the door to new capital and market visibility but also subjects your organization to greater scrutiny, transparency, and regulatory compliance.

In Singapore, where the Singapore Exchange (SGX) stands as one of Asia’s most reputable capital markets, navigating the IPO process requires more than just a great business; it requires the right advisory team. Building a skilled and coordinated group of experts ensures a smooth listing process, regulatory compliance, and successful post-IPO performance.

This article explores the key advisors you need for a Singapore IPO, their roles, and how to choose partners who can turn your listing vision into a lasting success.

Why Your IPO Advisory Team Matters

An IPO is a complex, multi-stage process involving strategy, finance, law, marketing, and investor relations. While your management team leads the business vision, advisors bring in the specialized expertise needed to meet SGX requirements, price your shares accurately, and communicate your company’s story to the market.

Without an experienced advisory group, even promising companies risk delays, regulatory setbacks, or mispriced offerings. Assembling the right “A-Team” not only increases the chances of regulatory approval but also instills investor confidence from day one.

1. The Issue Manager or Sponsor: Your Lead Navigator

Every IPO needs a lead advisor who guides the company through the listing journey from start to finish.

• For SGX Mainboard listings, this role is performed by an Issue Manager, typically an investment bank or licensed financial institution.

• For SGX Catalist listings, the lead role is taken by an Approved Sponsor, who assesses the company’s suitability for listing and ensures compliance with Catalist rules.

Responsibilities

• Evaluate your readiness for listing.

• Conduct due diligence and financial analysis.

• Prepare the prospectus or offer document.

• Liaise with SGX and the Monetary Authority of Singapore (MAS).

• Coordinate with other advisors, including lawyers, auditors, and valuers.

The Issue Manager or Sponsor is your strategic captain, ensuring that every part of the IPO vessel moves in sync toward a timely and compliant listing.

2. The Legal Advisors: Navigating the Regulatory Maze

Legal advisors play a crucial role in ensuring that every aspect of your IPO meets regulatory standards and aligns with investor expectations.

Typically, two legal teams are involved:

• Company Counsel: representing your company.

• Underwriters’ Counsel: representing the investment banks handling the share offering.

Responsibilities

• Conduct legal due diligence to identify potential risks.

• Draft and review the prospectus, contracts, and disclosures.

• Advise on corporate restructuring, governance, and regulatory compliance.

• Liaise with SGX, MAS, and other authorities on approval matters.

Strong legal counsel minimizes the risk of post-IPO disputes or compliance breaches, protecting your reputation and shareholder value.

3. The Auditors and Reporting Accountants: Establishing Financial Credibility

Financial transparency is the foundation of investor trust. Auditors and reporting accountants ensure that your financial statements are accurate, compliant with Singapore Financial Reporting Standards (SFRS), and presented clearly in the prospectus.

Responsibilities

• Audit and verify historical financial results.

• Review internal controls and accounting policies.

• Prepare pro forma financial information for the IPO document.

• Provide comfort letters to underwriters.

A reputable audit firm adds credibility to your IPO and reassures potential investors that your numbers are trustworthy.

4. The Independent Valuer: Putting a Price on Your Business

Determining the right valuation for your company is both an art and a science. Independent valuers provide objective assessments of your business, assets, or subsidiaries to ensure a fair and defendable IPO price.

Responsibilities

• Assess business and asset value based on market and financial models.

• Provide valuation reports required by regulators or investors.

• Support the pricing strategy in consultation with the Issue Manager.

An accurate valuation helps balance investor appeal with fair pricing, avoiding undervaluation or post-listing volatility.

5. The Public Relations (PR) and Investor Relations (IR) Advisors: Shaping Market Perception

A successful IPO isn’t just about financials; it’s also about storytelling. PR and IR advisors help communicate your company’s vision, growth potential, and leadership to investors and the public.

Responsibilities

• Craft the IPO narrative and key messaging.

• Coordinate press releases, media interviews, and launch events.

• Manage investor briefings and Q&A sessions.

• Support post-IPO communications and reputation management.

An effective communications strategy can generate excitement and confidence, helping your shares perform well once trading begins.

6. The Underwriters: Bringing the IPO to Market

Underwriters, typically investment banks, assist in marketing and distributing your shares to investors. They assess demand, manage book-building, and may guarantee share sales by purchasing any unsold portion of the offering.

Responsibilities

• Structure and price the offering.

• Market the IPO to institutional and retail investors.

• Stabilize trading during the initial days post-listing.

Working with strong underwriters can boost your IPO’s credibility and liquidity, ensuring a smoother debut on the SGX.

7. The Company’s Internal IPO Committee

Finally, the heart of the process lies within your organization. Forming an internal IPO committee ensures alignment across leadership, finance, operations, and compliance.

Key Tasks

• Oversee timelines and deliverables.

• Coordinate information requests from advisors.

• Manage corporate restructuring or governance enhancements.

• Ensure consistent messaging and decision-making.

A disciplined internal team keeps the IPO on schedule and ensures accountability across all functions.

Building Synergy Among Advisors

A successful IPO depends not just on the quality of individual advisors but on how effectively they collaborate. Clear communication, mutual trust, and shared understanding of your company’s vision are crucial.

Early engagement, ideally 12 to 18 months before the planned listing, enables advisors to identify gaps, implement governance improvements, and prepare financials in advance.

Remember: the IPO process is not a sprint; it’s a marathon that demands strategic coordination, patience, and transparency.

Final Thought: Your A-Team Defines Your IPO Success

An IPO marks a new chapter in your company’s evolution,  one that demands professionalism, discipline, and strategic partnerships. Whether you’re listing on the SGX Mainboard or Catalist, assembling the right advisory team is your most important investment.

From legal and financial advisors to PR experts and underwriters, each player brings a piece of the puzzle. When united under a clear vision and shared purpose, your “A-Team” can transform the complexities of the IPO journey into a story of success, credibility, and sustainable growth.

The Long Game: Understanding the J-Curve and Liquidity in MENA Venture Building

Venture building in the MENA region is gaining momentum. From fintech and healthtech to logistics and AI, the ecosystem is rapidly evolving. For investors, this presents enormous opportunities, but also challenges. Understanding the J-curve, the characteristic trajectory of venture returns, and liquidity dynamics is critical to navigating this frontier.

The MENA venture studio model offers a structured way to manage these dynamics, creating a pathway for sustainable growth and long-term returns.

What Is the J-Curve?

In venture capital, the J-curve represents the typical trajectory of returns over time.

• In the early years, investments often show negative returns. This is due to capital deployment, operational expenses, and the high-risk nature of early-stage startups.

• Over time, as startups grow, scale, and either achieve profitability or exit through acquisition or IPO, returns rise sharply, creating the characteristic J-shaped curve.

For MENA investors, understanding this curve is crucial. The region’s venture ecosystem is still maturing, meaning early-stage capital is particularly sensitive to timing, market adoption, and operational execution.

Venture Studios and the J-Curve Advantage

Venture studios, operational platforms that build startups from the ground up,have a unique role in mitigating the downside of the J-curve:

1. Structured Capital Deployment
   Studios invest methodically in multiple ventures, controlling cash flow and resource allocation. Shared infrastructure reduces operational costs across ventures, helping to minimize early-stage losses.

2. Operational Support and Risk Mitigation
   Startups in studios benefit from experienced operators, standardized processes, and hands-on mentorship. By reducing execution risk, studios increase the likelihood of ventures reaching positive cash flow faster, flattening the early dip of the J-curve.

3. Portfolio Diversification
   Studios build multiple ventures simultaneously across different sectors and markets. This naturally diversifies risk, smoothing the overall performance curve for investors.

In essence, the venture studio model doesn’t eliminate the J-curve, but it shortens and flattens the early negative period, improving capital efficiency and early-stage predictability.

Liquidity Considerations in MENA

Liquidity is a key factor for investors. In traditional VC, exits can take 7–10 years, often relying on IPOs or acquisitions. MENA’s ecosystem is evolving, and liquidity pathways are expanding:

• Acquisitions by Regional Corporates: Large MENA conglomerates and multinational entrants are increasingly acquiring startups, offering partial or full liquidity events.

• Cross-Border Exits: With regional and international investors participating, startups may exit to global markets, creating additional liquidity options.

• Secondary Markets: Emerging platforms allow LPs and early-stage investors to sell stakes in promising ventures, although these markets are still nascent.

Venture studios often design their portfolio with liquidity strategies in mind, helping LPs understand when and how value can be realized across multiple ventures. This is a critical consideration for long-term capital allocation in MENA.

Balancing the Long Game with Short-Term Metrics

While the J-curve emphasizes long-term value creation, investors increasingly demand short-term indicators of progress:

• Operational Milestones: Studios track product launches, user adoption, and revenue growth across ventures.

• Capital Efficiency: How effectively are studios deploying resources to generate traction? Shared infrastructure and repeatable processes are key metrics.

• Market Validation: Early customer acquisition, pilot programs, and partnerships provide signals of eventual liquidity potential.

By measuring these intermediate outcomes, studios provide LPs with visibility into progress, even while the overall J-curve plays out over several years.

Why MENA Venture Studios Are Attractive to Investors

The venture studio model in MENA aligns with both long-term growth and risk-conscious investing:

1. De-risking Early-Stage Ventures: Structured operations and repeatable processes reduce the likelihood of catastrophic failure.

2. Multiple Liquidity Paths: Portfolios of ventures increase the probability that at least some startups achieve exits, diversifying liquidity timing.

3. Alignment of Incentives: Studio teams often hold equity alongside LPs, ensuring shared commitment to operational success and long-term value creation.

4. Regional Growth Potential: Governments are investing heavily in innovation, digital infrastructure, and entrepreneurship,providing tailwinds that accelerate venture maturity and liquidity prospects.

Together, these factors make MENA venture studios an attractive proposition for LPs who understand the long-term nature of venture investing.

Strategic Takeaways for Investors

1. Think Long-Term: Venture building in MENA requires patience. The J-curve is real, and returns often materialize over a 5–10 year horizon.

2. Evaluate Operational Depth: Assess the studio’s infrastructure, talent networks, and execution capacity, these elements directly influence early-stage risk.

3. Understand Liquidity Strategy: Ask how the studio plans to realize value across its portfolio, including potential acquisitions, secondary sales, or regional exits.

4. Consider Portfolio Effect: Investing in a studio provides exposure to multiple startups simultaneously, diversifying risk while improving the likelihood of capturing high-growth opportunities.

Conclusion: Playing the Long Game in MENA

Venture building in MENA is not a sprint; it’s a marathon. Understanding the J-curve and liquidity dynamics is essential for investors seeking to participate in this emerging ecosystem.

Venture studios provide a compelling solution: by combining operational rigor, portfolio diversification, and strategic planning, they flatten the early risk phase while creating multiple pathways for liquidity.

For investors, this is the essence of the long game: patiently supporting well-structured ventures, tracking intermediate progress, and reaping outsized returns when startups mature and exit.

In a region defined by transformation, the MENA venture studio model offers a disciplined, de-risked, and diversified approach, a roadmap for investors to navigate the long journey from capital deployment to meaningful returns.

From Sand to Systems: Is the MENA Region the Next Global Hub for Venture Building?

Over the past decade, the Middle East and North Africa (MENA) region has been quietly,  and rapidly, transforming from an oil-dependent economy into a hub of digital innovation. Ambitious government visions, rising investment flows, and a young, tech-savvy population have turned the region into fertile ground for entrepreneurship.

Now, a new model of innovation is taking root: venture building, the systematic creation of startups from within specialized organizations known as venture studios. Unlike traditional investors, venture studios don’t just fund startups; they build them from scratch, combining capital, talent, and operational expertise under one roof.

The question is no longer if this model will thrive in MENA, but how far it can go. Could the region become the world’s next epicenter for venture building?

The Rise of Venture Building in MENA

Historically, MENA’s economic landscape has been dominated by energy, real estate, and traditional trade. But in recent years, governments have recognized that true resilience depends on diversification and innovation. Initiatives such as Saudi Vision 2030, UAE Vision 2031, and Egypt Vision 2030 have placed entrepreneurship at the heart of national development.

Venture studios are emerging as a cornerstone of this new economy. By combining the precision of corporate strategy with the creativity of entrepreneurship, they are reshaping how startups are born and scaled.

In cities like Dubai, Riyadh, Cairo, and Manama, venture studios are now acting as innovation factories, producing startups faster, cheaper, and with higher survival rates than traditional methods.

Why the Venture Studio Model Works for MENA

The venture studio model fits the MENA region in ways that go beyond economic logic. It aligns with both the region’s structural strengths and its cultural realities.

Here’s why it’s taking off:

1. Government-Backed Innovation Ecosystems

Governments across MENA are actively investing in startup infrastructure,  from Saudi Arabia’s Monsha’at and NEOM’s innovation programs to the UAE’s Dubai Future Foundation and Hub71 in Abu Dhabi.
These initiatives provide fertile ground for studios to thrive by connecting them with funding, talent, and regulatory support.

2. Access to Capital

The region has seen a surge in venture capital activity. According to Magnitt, venture funding in MENA surpassed $2.6 billion in 2024, with growing interest from sovereign wealth funds and family offices.
Venture studios benefit from this liquidity while offering investors lower risk and higher control, since they directly shape their startups from day one.

3. Talent Meets Vision

With one of the world’s youngest populations, nearly 60% under the age of 30,  MENA is rich in creative, tech-savvy talent. Studios provide structure and mentorship to this pool of energy, channeling youthful ambition into scalable, globally competitive startups.

4. Cultural Fit for Collaboration

The collaborative nature of venture building aligns with the region’s culture of partnership and collective growth. The model encourages cooperation between governments, corporates, and founders, creating a shared sense of ownership over innovation.

The Building Blocks of MENA’s Venture Ecosystem

MENA’s venture ecosystem is now supported by a growing network of specialized studios, accelerators, and corporate innovation arms. Each plays a unique role in transforming the region into a global venture-building hub.

• Enhance Ventures (UAE): One of the region’s leading studios, focused on digital platforms and consumer tech, creating and scaling ventures across GCC markets.

• Astrolabs (Saudi Arabia): Blends talent development, corporate innovation, and startup incubation, acting as a bridge between local entrepreneurs and global markets.

• Modus Capital (Egypt/UAE): Operates a hybrid model combining venture capital and studio services, helping early-stage startups validate and scale.

• Flat6Labs (Bahrain & Egypt): Pioneers in seed acceleration that are now integrating venture-building elements into their programs.

These organizations are helping build a connected ecosystem, where ideas, funding, and talent move freely across borders.

From Oil to Code: The Strategic Transformation

The phrase “From sand to systems” captures the essence of MENA’s evolution. What once powered global economies through oil is now giving way to digital infrastructure, smart industries, and knowledge economies.

Venture studios are playing a crucial role in this shift. They enable the region to:

• Build locally relevant, globally scalable startups.

• Capture more value from innovation within regional markets.

• Create sustainable jobs that align with the demands of a digital economy.

In essence, venture studios are industrializing entrepreneurship, applying the same systems thinking that once drove the region’s energy boom, but this time in the digital realm.

Challenges Along the Way

Of course, the journey is not without hurdles. For MENA to become a true global hub for venture building, several challenges must be addressed:

• Regulatory Diversity: Each country has its own startup and investment laws, making cross-border scaling complex.

• Talent Retention: Many skilled professionals still migrate to Europe or North America for better opportunities.

• Corporate Mindset: Some legacy organizations are still hesitant to take the calculated risks that venture studios require.

However, these challenges are being actively tackled through policy reforms, regional collaboration, and corporate innovation programs, a sign that the region’s trajectory is heading firmly upward.

Global Relevance and Future Potential

Globally, venture studios are gaining traction, from Atomic and Science Inc. in the U.S. to Rocket Internet in Europe. What sets MENA apart is the combination of youthful energy, government commitment, and capital availability.

If nurtured correctly, MENA’s venture ecosystem could soon rival Silicon Valley’s startup engine, offering a new blueprint for emerging markets. With its strategic location bridging Africa, Asia, and Europe, the region has the potential to become a launchpad for global innovation.

Final Thought: Building the Future, One Venture at a Time

The MENA region is proving that innovation doesn’t have to follow the Silicon Valley playbook. By adapting global best practices to local realities, it’s pioneering a new model for venture creation, one rooted in collaboration, sustainability, and scale.

From Riyadh to Cairo, from Dubai to Casablanca, venture studios are not just launching startups; they are building systems of innovation that will define the region’s economic future.

What began in the sand is now evolving into a sophisticated ecosystem, from sand to systems, from oil to ideas.

And if the momentum continues, the MENA region may soon stand not just as a participant in global innovation, but as its next great hub.

Measuring Impact: Beyond Financial Returns in the MENA Venture Studio Model

As the Middle East and North Africa (MENA) region accelerates its journey toward economic diversification and digital transformation, venture studios have emerged as powerful engines of innovation. They combine the agility of startups with the discipline of structured execution, enabling new companies to grow faster and smarter than ever before.

However, as the region’s venture-building ecosystem matures, a crucial question is being asked:
How do we measure success beyond financial returns?

For MENA venture studios, many of which are backed by sovereign wealth funds, conglomerates, and development agencies, profitability is important, but it’s not the whole story. True impact goes beyond investor exit values or portfolio valuations. It lies in how these ventures contribute to broader economic, social, and environmental progress across the region.

Redefining Success in MENA’s Innovation Ecosystem

Globally, venture capital has long been measured by metrics such as internal rate of return (IRR), valuation growth, and number of exits. But MENA’s venture studio landscape is being built within a broader mission-driven context.

Countries like the UAE, Saudi Arabia, Egypt, and Bahrain are pursuing national visions that emphasize inclusive growth, job creation, sustainability, and digital transformation. As such, the success of a venture studio in this region cannot be captured by financial performance alone.

Instead, leading studios are shifting toward a triple-impact framework:

1. Economic Impact – fostering new sectors, creating jobs, and boosting competitiveness.

2. Social Impact – improving quality of life, enabling access, and empowering local talent.

3. Environmental Impact – supporting sustainability, clean technology, and circular economy goals.

This broader lens reflects a new reality: venture studios in MENA are not only building startups, they are building the future of national economies.

1. Economic Impact: Building Engines of Growth

At the core of every venture studio lies the goal of economic diversification, a vital priority for MENA countries seeking to reduce dependence on oil and traditional industries.

Venture studios contribute to this transformation in three critical ways:

a. Job Creation

By designing multiple startups each year, studios create a steady pipeline of employment opportunities. These jobs extend beyond tech, they include roles in operations, marketing, finance, and logistics, contributing to broader workforce development.

b. SME Development

Many of the ventures launched from studios evolve into small and medium-sized enterprises (SMEs), the backbone of any sustainable economy. In Saudi Arabia, for example, SMEs already contribute over 30% to GDP, and venture studios are helping raise that number by producing more resilient, scalable businesses.

c. Capital Efficiency

Unlike traditional venture funds, studios deploy capital more efficiently by reusing shared resources and minimizing duplication. This results in higher survival rates for startups and better use of investor funds, a key advantage for public and private investors seeking sustainable returns.

2. Social Impact: Empowering Talent and Inclusion

The MENA region is home to one of the youngest populations in the world, a generation eager to innovate but often lacking structured pathways into entrepreneurship. Venture studios are bridging this gap by turning raw talent into startup leadership.

a. Empowering Youth and Women

Studios across the region are increasingly prioritizing inclusion. Programs like Astrolabs’ venture-building initiatives and Flat6Labs’ founder training are helping young and female entrepreneurs gain access to mentorship, networks, and capital,historically limited resources in the region’s startup ecosystem.

b. Building Entrepreneurial Skills

Through hands-on venture creation, studios act as real-world universities for entrepreneurship. Founders, engineers, and operators learn by building, gaining experience in ideation, validation, and scaling that can later be applied across the ecosystem.

c. Solving Local Challenges

Many venture studios in MENA focus on solving problems unique to the region, from fintech inclusion in underbanked markets to healthtech for remote communities and agritech for food security. These ventures have tangible social benefits, helping improve daily life while fostering self-sustaining business models.

3. Environmental Impact: Sustainability as a Growth Driver

As climate change and sustainability rise on global agendas, MENA’s venture ecosystem is aligning with green innovation goals. The UAE’s hosting of COP28 underscored the region’s commitment to a cleaner future, and venture studios are increasingly integrating environmental metrics into their impact frameworks.

a. Green Tech Ventures

Studios are actively developing ventures in renewable energy, recycling, water management, and sustainable agriculture. For instance, clean-tech startups emerging from GCC-based studios are helping reduce carbon footprints in logistics and energy consumption.

b. Sustainable Operations

The studio model itself promotes sustainability by reducing redundancy, sharing teams, infrastructure, and tools across multiple ventures. This efficiency minimizes waste and fosters resource-conscious entrepreneurship.

c. Measuring ESG Performance

Forward-looking studios are embedding Environmental, Social, and Governance (ESG) principles into their performance dashboards. Rather than treating sustainability as a side metric, they are positioning it as a core success indicator for investors and partners.

The Metrics That Matter: A Holistic Approach

To capture impact beyond profit, MENA venture studios are adopting integrated measurement frameworks that track both financial and non-financial outcomes. Key performance indicators (KPIs) include:

• Number of sustainable ventures launched

• Jobs created and percentage filled by local talent

• Gender diversity within portfolio companies

• Contribution to GDP and local value chains

• Reduction in carbon footprint or energy use

• Access to essential services (finance, health, education, etc.)

These metrics offer a more complete picture of value creation, one that resonates with governments, investors, and communities alike.

Leading by Example: Impact in Action

Some of the region’s pioneering venture studios are already demonstrating how impact-driven innovation can succeed:

• Enhance Ventures (UAE): Focuses on building ventures that create digital accessibility and economic opportunity.

• Modus Capital (Egypt/UAE): Integrates ESG considerations into every stage of venture development.

• OasisX (Bahrain): Supports Web3 and sustainability-driven startups that align with regional digital economy goals.

By embedding impact into their DNA, these studios are redefining what it means to innovate responsibly in the MENA context.

Final Thought: A New Definition of Success

The MENA venture studio model represents more than a new way to launch startups, it’s a new philosophy of value creation. Financial returns remain essential, but they now coexist with equally important goals: building inclusive economies, empowering people, and protecting the planet.

In this new paradigm, success is measured not just in exits and valuations, but in lives improved, systems transformed, and futures created.

As the MENA region continues its rapid transformation, the most successful venture studios will be those that look beyond profit and toward purpose.

Because in the end, the ventures that shape tomorrow’s MENA won’t just generate returns, they’ll generate impact that lasts.

The Talent Factor: How Venture Studios are Solving the Founder-Operator Gap in the MENA Tech Scene

The MENA region is in the middle of a remarkable entrepreneurial awakening. Startups are no longer rare success stories,  they’re becoming the driving force behind national visions, digital economies, and private-sector transformation.

Yet amid this surge in capital, infrastructure, and ambition, one structural challenge continues to slow down progress: the founder–operator gap.

Many great ideas exist. Plenty of capital is available. But there’s a shortage of the right kind of talent, experienced founders who can turn opportunity into scalable business, and operators who can execute with discipline.

This is where venture studios are stepping in, becoming the talent engines of the MENA tech ecosystem.

The Founder–Operator Gap: MENA’s Silent Bottleneck

Over the past decade, the region has witnessed an explosion in startup activity,  from fintech and healthtech to logistics and AI. However, behind the headlines of record funding rounds lies a quieter reality: most startups fail not because of lack of funding, but because of lack of execution capacity.

Two main issues fuel this gap:

1. Inexperienced Founders: Many first-time founders in MENA come from corporate or academic backgrounds, with limited exposure to startup building or operational leadership.

2. Scarcity of Operators: Skilled operators,  those who can manage growth, optimize systems, and scale operations, are in short supply.

The result? Even with brilliant ideas and strong markets, startups struggle to move from ideation to execution.

Enter the Venture Studio: A Factory for Founders

Unlike traditional venture capital firms, which invest in independent founders, venture studios take a more hands-on approach. They build startups from the ground up, supplying both the ideas and the teams to execute them.

In the MENA region, where entrepreneurial experience is still developing, this model has proven transformative.

A venture studio combines:

• Institutional knowledge (repeatable venture-building processes),

• Shared operational infrastructure (finance, HR, product, tech, marketing), and

• A curated talent network of founders, domain experts, and operators.

This structure creates a talent multiplier effect — empowering people who may not have been ready to launch a startup alone to become successful co-founders within a supported environment.

How Venture Studios Bridge the Gap

1. Founder Selection and Training

Venture studios in MENA are redefining how founders are discovered and developed. Instead of waiting for perfect founders to appear, they identify high-potential individuals, often from consulting, corporate, or technical backgrounds, and equip them with entrepreneurial playbooks.

Programs like Modus Capital’s Venture Builders and Enhance Ventures’ Founder-in-Residence model are prime examples. These studios recruit aspiring founders, pair them with tested business ideas, and provide hands-on mentorship from ideation to market launch.

This approach democratizes entrepreneurship,transforming capable professionals into venture-ready founders through structured guidance and shared learning.

2. Shared Operational Backbone

One of the biggest barriers for early-stage founders is building reliable operations from scratch, hiring teams, managing compliance, running tech sprints, or handling investor relations.

Venture studios solve this problem by providing a shared operational backbone.

Finance, HR, product development, and legal support are centralized within the studio. This allows startup teams to focus entirely on what matters most,  building, validating, and scaling their core business, while the studio handles the foundational layers.

In other words, studios replace chaos with clarity,  giving startups the stability of a seasoned organization and the agility of a startup.

3. The Operator Network: Execution as a Service

In mature ecosystems like Silicon Valley, operators move fluidly between startups, bringing hard-earned expertise in growth, marketing, or product management. In MENA, this talent mobility is still limited, but venture studios are changing that.

Studios maintain a network of operators who can plug into ventures as needed, either temporarily during key growth phases or permanently as co-founders.

This “execution-as-a-service” model ensures that even first-time founders have access to operational excellence from day one. It’s no longer about finding one perfect founder who “does it all”,  it’s about assembling balanced teams that combine vision, execution, and scalability.

4. Culture of Repetition and Learning

Venture studios are not one-off builders; they’re repeat builders. Every success or failure contributes to a growing internal knowledge base,a library of insights on what works and what doesn’t in the MENA market context.

This learning culture compounds over time, producing a new generation of data-driven, market-smart entrepreneurs. Founders emerging from studio ecosystems are not just innovators , they’re operators who understand growth mechanics and scalability in local and regional markets.

Why the MENA Context Makes Venture Studios Essential

The founder-operator gap is not unique to MENA, but several regional dynamics make the studio model especially effective here:

• Nascent Startup Ecosystem: The startup culture is still young, and failure is often stigmatized. Venture studios offer a safer learning environment where experimentation is encouraged and guided.

• Rapid National Transformation: Countries like Saudi Arabia and the UAE are pushing to create 100,000+ new startups in the next decade. Studios help achieve this scale efficiently by systematizing venture creation.

• Talent Repatriation: Many studios are attracting diaspora talent — experienced MENA professionals returning from global tech hubs — to mentor and lead regional startups.

• Government Support: National innovation programs increasingly collaborate with studios to build ventures aligned with Vision 2030 and other economic diversification plans.

Together, these trends make venture studios not just participants in MENA’s innovation story, but architects of it.

Beyond the Gap: Building a Talent Flywheel

By solving the founder-operator gap, venture studios are creating a self-sustaining talent flywheel for the region:

1. Studios identify and train high-potential individuals.

2. These individuals build ventures and gain real-world startup experience.

3. Successful founders and operators exit and return to mentor or fund new startups.

4. The ecosystem compounds in skill, confidence, and sophistication.

This circular flow of experience and expertise builds the founder class that MENA has long been missing, transforming the region from a market of opportunity-seekers into one of seasoned builders.

Final Thought: The Talent Engine of MENA’s Future

Capital can spark opportunity, but talent sustains it. And in the MENA tech scene, venture studios are proving that the most valuable product they create isn’t just startups, it’s founders who can execute and operators who can lead.

By bridging the founder–operator gap, venture studios are building the human infrastructure of the region’s innovation economy, one skilled entrepreneur at a time.

As this model matures, the real success stories won’t just be unicorns or IPOs. They’ll be the countless talented individuals who, thanks to venture studios, learned not only how to start a business, but how to build it right.

The Corporate Venture Studio: A New Model for Innovation in Middle Eastern Conglomerates

In recent years, the Middle East has undergone a remarkable transformation. Governments are diversifying their economies beyond oil, digital infrastructure is expanding, and the region’s youth are embracing entrepreneurship at record levels. Amid this evolution, conglomerates, the long-standing giants of industry, are rethinking how they innovate.

Traditional corporate structures, while powerful, often struggle to move at the speed of startups. Bureaucracy, legacy systems, and risk aversion can make innovation slow and incremental. To overcome this, a new model is taking root in the region: the corporate venture studio, a hybrid engine that blends the agility of startups with the scale and resources of large enterprises.

This model is redefining how Middle Eastern conglomerates create new businesses, capture emerging opportunities, and sustain long-term competitiveness.

From Corporate Labs to Venture Studios: A Shift in Mindset

Historically, corporations have relied on R&D departments or innovation labs to develop new products. While these units generated valuable research, they often struggled to turn ideas into viable businesses. The corporate venture studio model solves this problem by focusing not only on ideation but also on venture creation, building actual startups that operate with independence but benefit from corporate backing.

Unlike traditional accelerators or incubators, corporate venture studios:

• Generate ideas aligned with the parent company’s strategic goals.

• Validate these ideas through market testing and lean startup methods.

• Build and fund the ventures using shared operational resources.

• Spin out or integrate the ventures once they reach maturity.

In short, corporate venture studios combine the discipline of corporate strategy with the speed of entrepreneurship, creating a win-win structure for both innovation and business growth.

Why the Corporate Venture Studio Model Fits the Middle East

The corporate venture studio model aligns perfectly with the Middle East’s current economic ambitions. Initiatives such as Saudi Vision 2030, UAE Vision 2031, and Qatar National Vision 2030 all emphasize entrepreneurship, private sector diversification, and digital transformation.

Conglomerates,  from family-owned enterprises to state-backed corporations, play a central role in achieving these goals. However, many face challenges such as:

• Limited internal agility to experiment with new models.

• Difficulty attracting entrepreneurial talent.

• Uncertainty around investing in unproven markets or technologies.

Corporate venture studios offer a solution. They allow these corporations to innovate safely, by separating risk from their core operations while still capturing upside potential from new ventures.

How Corporate Venture Studios Operate

A corporate venture studio is built on three foundational components: strategy alignment, venture-building capability, and governance flexibility.

1. Strategy Alignment

The studio starts by identifying strategic areas where innovation can create measurable impact,  for example, digital logistics for a transport company, fintech solutions for a bank, or sustainable energy technologies for an oil and gas enterprise.

The goal is to ensure that each new venture complements the corporation’s long-term vision while exploring adjacent opportunities that might not fit the core business today.

2. Venture-Building Capability

Once opportunity areas are defined, the studio uses startup methodologies to test and validate ideas quickly. This includes:

• Conducting market research and customer interviews.

• Building prototypes and minimum viable products (MVPs).

• Running pilot programs to assess demand.

By leveraging corporate resources, from funding to distribution channels,  studios can launch and scale ventures faster than independent startups.

3. Governance Flexibility

Perhaps the most critical success factor is autonomy. Corporate venture studios give each new venture the freedom to operate outside corporate bureaucracy. Founders and entrepreneurs-in-residence make rapid decisions, while the studio provides operational, legal, and financial support.

This balance of independence and backing allows ventures to innovate freely while benefiting from the credibility and infrastructure of their corporate parent.

Real-World Examples from the MENA Region

Across the Middle East, several forward-thinking corporations are already embracing this model:

• Majid Al Futtaim (UAE) launched its venture-building arm to create digital-first consumer businesses and enhance customer engagement.

• STC Ventures (Saudi Arabia) leverages its telecom expertise to incubate digital platforms in fintech, IoT, and entertainment.

• e& (formerly Etisalat Group) established e& Capital, which operates similarly to a corporate studio by investing in and co-building ventures that align with future connectivity and AI opportunities.

• Mubadala Capital (UAE) has increasingly partnered with venture studios to diversify into technology-driven sectors, bridging local capital with global innovation expertise.

These examples demonstrate that corporate venture studios are not theoretical experiments — they are becoming strategic innovation engines within the region’s largest enterprises.

The Advantages of the Corporate Venture Studio Model

The benefits for Middle Eastern conglomerates are substantial:

1. Accelerated Innovation:
   Ventures can move faster than internal teams, enabling corporations to respond quickly to market shifts.

2. Talent Magnet:
   Studios attract entrepreneurial talent that might otherwise avoid traditional corporate environments.

3. Risk Management:
   By structuring new ventures as separate entities, corporations can contain risk while testing new markets or technologies.

4. Strategic Synergy:
   Successful ventures can be integrated into the corporation’s portfolio, strengthening its competitive edge.

5. Sustainability and Diversification:
   Studios help corporations expand beyond their legacy sectors, supporting regional diversification agendas.

Challenges and Considerations

While the potential is high, building a corporate venture studio is not without challenges. Common pitfalls include:

• Misalignment between corporate culture and entrepreneurial thinking.

• Overly rigid governance structures.

• Unrealistic expectations of short-term financial returns.

To succeed, corporations must embrace a long-term mindset, empowering their studio teams with autonomy, budget, and tolerance for experimentation. The key is not immediate profit — but sustained capability to innovate continuously.

Final Thought: A Blueprint for the Next Era of Corporate Innovation

As MENA’s economies continue to diversify, the corporate venture studio model stands out as a transformative path forward. It bridges the best of both worlds,  the agility of startups and the strength of conglomerates, creating a platform where innovation can thrive sustainably.

For Middle Eastern corporations, this model represents more than a trend; it’s a strategic necessity. The future belongs to those who can build, test, and scale new businesses — not once, but repeatedly.

In a region defined by ambition and transformation, the corporate venture studio is emerging as the engine of the next wave of innovation, driving progress from within the walls of the region’s most powerful enterprises.

A Portfolio Approach: How Venture Studios Offer Diversified Exposure to MENA’s Startup Ecosystem

The Middle East and North Africa (MENA) region is rapidly evolving into one of the world’s most dynamic startup ecosystems. Fueled by ambitious government initiatives, an increasingly tech-savvy population, and growing access to capital, the region has become a fertile ground for entrepreneurship. Yet for investors seeking exposure to this vibrant landscape, navigating the risks and complexities of early-stage ventures remains a challenge.

Enter the venture studio model, a systematic approach to venture creation that offers a built-in diversification strategy. Unlike traditional venture capital, which typically invests in multiple independent startups with varying degrees of oversight, venture studios build, support, and scale multiple startups internally, effectively creating a portfolio by design.

Understanding the Venture Studio Model

A venture studio is more than just an incubator or accelerator. It’s a fully operational organization that:

1. Generates business ideas internally, based on market insights and strategic gaps.

2. Validates these ideas using structured experimentation and minimal viable products (MVPs).

3. Assembles teams of founders and operators to execute the ventures.

4. Provides shared infrastructure,  from product development and marketing to legal and finance support.

Because studios oversee multiple ventures simultaneously, they offer investors diversified exposure to a range of industries, business models, and market segments, all within a single organizational structure.

Diversification: A Built-In Feature

Traditional early-stage investing carries high risk. According to global benchmarks, over 75% of startups fail, often due to operational or market execution challenges rather than poor ideas. For investors in MENA, where entrepreneurial experience is still growing,  this risk is compounded by regulatory diversity, talent gaps, and market fragmentation.

Venture studios address this challenge through built-in portfolio diversification:

• Multiple Ventures: Each studio typically launches several startups per year, across different sectors such as fintech, healthtech, logistics, and edtech.

• Shared Resources: Operational functions, talent, and infrastructure are shared across ventures, reducing costs and failure rates.

• Data-Driven Decision Making: Studios track key metrics across all ventures, allowing them to double down on high-performing ideas and pivot or discontinue underperforming ones quickly.

For investors, this means risk is spread across multiple ventures, reducing the impact of individual failures and enhancing potential returns.

Why MENA Is Perfect for Studio Diversification

Several regional dynamics make the MENA venture studio model particularly appealing for portfolio-minded investors:

1. Emerging Market Dynamics: MENA markets vary widely in consumer behavior, regulatory frameworks, and infrastructure. Studios can test and scale ventures across multiple markets, capturing diverse opportunities while mitigating localized risks.

2. Sectoral Gaps and Opportunities: Rapid digital transformation and diversification agendas have created whitespace in sectors like fintech, logistics, e-commerce, and sustainability. Studios can simultaneously build ventures targeting different sectors, effectively hedging sector-specific risks.

3. Access to Talent: Venture studios leverage networks of operators, founders, and experts across MENA, ensuring that each venture has the necessary skills to succeed, which traditional investors may struggle to provide individually.

4. Government and Corporate Alignment: Studios often align ventures with national visions, corporate innovation programs, or public-private partnerships, increasing the likelihood of market adoption and long-term viability.

Investor Advantages: Beyond Traditional VC

Investing in venture studios offers LPs and institutional investors several advantages over traditional VC exposure:

1. Lower Risk Through Operational Oversight

Because studios manage ventures end-to-end, they reduce the execution risk that plagues early-stage startups. Investors gain confidence knowing that each startup benefits from a tested operational framework and experienced leadership.

2. Portfolio Diversification Without Fragmentation

Instead of spreading capital across dozens of independent startups, investors can allocate funds to a single studio, which itself manages multiple ventures. This simplifies administration while maintaining diversification benefits.

3. Early Access to High-Potential Ventures

Venture studios are involved from day one, giving investors access to startups at pre-seed and seed stages, often before traditional VC funds would typically engage. This early exposure can enhance potential returns and strategic influence.

4. Alignment of Incentives

Studio teams hold equity in the startups they help build, aligning incentives with both founders and investors. Every stakeholder benefits from successful execution, reducing the misalignment that can occur in traditional funding structures.

Case Examples from MENA

Several venture studios in MENA are demonstrating the portfolio advantage:

• Enhance Ventures (UAE): Builds multiple digital-first ventures simultaneously, from fintech to consumer tech, providing investors exposure to a broad spectrum of opportunities.

• Astrolabs (Saudi Arabia): Combines incubation, corporate partnerships, and venture building to create a diversified venture pipeline across tech sectors.

• Modus Capital (Egypt/UAE): Offers investors a hybrid approach, combining studio-built ventures with managed seed-stage investments, effectively blending portfolio depth with operational oversight.

These examples show that studios are more than idea factories, they are strategic platforms for diversified exposure, designed to reduce risk and increase scalability for investors.

Measuring Success: Financial and Beyond

While financial returns remain critical, the studio model also provides measurable non-financial value:

• Job Creation: Multiple ventures generate employment opportunities across sectors and markets.

• Ecosystem Development: Studios strengthen the entrepreneurial ecosystem by training founders and operators who may later launch independent startups.

• Strategic Alignment: Ventures often align with government diversification goals or corporate innovation strategies, enhancing their sustainability and adoption.

For investors, these metrics represent additional layers of risk mitigation and impact, reinforcing the portfolio advantage beyond pure financial metrics.

Final Thought: A Smarter Way to Invest in MENA

The MENA venture studio model offers a unique, portfolio-first approach to investing in emerging markets. By systematically creating multiple ventures under one operational umbrella, studios reduce execution risk, increase operational efficiency, and provide investors with diversified exposure to high-potential startups.

In a region defined by rapid transformation and ambitious national visions, venture studios are not just building startups, they are building portfolios, capabilities, and ecosystems simultaneously.

For LPs and institutional investors, the message is clear: the next frontier of smart, diversified early-stage investing in MENA is not about betting on a single idea. It’s about betting on the system that builds the ideas, and managing risk while scaling opportunity.

Choosing Your Path: Mainboard vs. Catalist Picking the Right SGX Board for Your IPO

In recent years, Singapore has strengthened its position as one of Asia’s most dynamic financial hubs, offering a gateway for companies seeking access to capital and global investors. At the heart of this opportunity lies the Singapore Exchange (SGX), which offers two distinct boards for listing: the Mainboard and the Catalist. Both platforms provide companies access to public markets, but they differ in their listing requirements, regulatory frameworks, and target audiences.

Choosing between the Mainboard and Catalist is a critical strategic decision that can influence your company’s growth trajectory, investor profile, and even brand perception. This article explores the key distinctions between the two, the benefits and challenges of each, and the factors to consider when deciding where your business fits best.

Understanding SGX’s Dual-Board Structure

The SGX’s dual-board system is designed to serve companies at different stages of maturity and growth.

• The Mainboard is the primary market for established, profitable companies seeking to raise substantial capital and attract institutional investors. It’s home to blue-chip names and regional leaders with strong track records and corporate governance structures.

• The Catalist, on the other hand, serves as a growth board for small to medium enterprises (SMEs) and high-potential startups that may not yet meet the Mainboard’s stringent criteria but have strong expansion prospects.

This dual framework reflects SGX’s goal to nurture companies across their growth journey, from early-stage ventures to large, multinational corporations.

The SGX Mainboard: A Platform for Proven Leaders

The Mainboard is widely recognized for its credibility and prestige. Companies listed here are typically mature businesses with a proven track record of financial performance and an established market presence.

Key Requirements

To qualify for the Mainboard, a company must meet at least one of the following financial tests:

• Profit Test: At least SGD 30 million in pre-tax profit over the last three years, with a minimum of SGD 7.5 million in the latest year.

• Market Capitalization Test: A market cap of at least SGD 150 million if profitability requirements aren’t met.

• Revenue Test: At least SGD 300 million in revenue for the latest completed financial year.

Companies must also demonstrate solid corporate governance, a diversified shareholder base, and compliance with the Singapore Code of Corporate Governance.

Advantages of Listing on the Mainboard

• Prestige and visibility: Mainboard listing enhances credibility and signals financial strength to global investors.

• Access to institutional investors: The board attracts mutual funds, pension funds, and long-term institutional players.

• Liquidity and valuation premium: Mainboard-listed companies generally enjoy higher trading volumes and valuation multiples.

Challenges

However, the Mainboard’s rigorous requirements can be a hurdle for fast-growing but still-developing businesses. The higher compliance costs, strict reporting standards, and need for consistent profitability may not be suitable for younger enterprises that are still in the scaling phase.

The SGX Catalist: Accelerating Growth for Emerging Companies

Launched in 2007, the Catalist board is designed to support emerging and high-growth companies seeking public funding without the heavy regulatory burden of the Mainboard. It’s modeled after similar growth markets such as London’s AIM (Alternative Investment Market).

Key Features

Unlike the Mainboard, the Catalist does not prescribe minimum financial criteria. Instead, companies must be sponsored by an approved sponsor, who evaluates their suitability for listing and guides them through the process.

Sponsors play an ongoing role in ensuring that the company maintains compliance with SGX rules post-listing. This approach gives high-potential firms, including tech startups and innovative SMEs, a flexible entry point into public markets.

Advantages of Listing on Catalist

• Flexible entry criteria: Ideal for companies in growth phases with limited profit track records.

• Faster listing process: The sponsor-driven model often allows quicker time-to-market.

• Visibility and growth capital: Listing enhances brand awareness, helping companies attract new investors and business partners.

Challenges

While Catalist provides accessibility, it comes with inevitable trade-offs:

• Less investor confidence: Some institutional investors prefer Mainboard companies due to perceived lower risk.

• Higher scrutiny from sponsors: Requires Continuous compliance monitoring.

Liquidity limitations: Smaller trading volumes can lead to more volatile share price movements.
How to Decide Which Board Fits Your Company

Choosing between the Mainboard and Catalist isn’t simply about meeting the eligibility criteria; it’s about aligning your strategic goals with the right market platform.

Here are a few guiding questions:

1. What stage is your company in?

• If you’re a mature business with consistent earnings, the Mainboard offers long-term credibility and stability.

• If you’re still in an expansion phase, Catalist provides access to funding without the burden of strict profit tests.

2. What type of investors are you targeting?

• Mainboard attracts conservative institutional investors.

• Catalist draws venture-focused and risk-tolerant investors seeking high-growth opportunities.

3. How much control do you want over compliance?

• Mainboard companies work directly under SGX’s regulation.

• Catalyst companies rely on ongoing sponsor oversight, which may feel more flexible but also more dependent on external guidance.

4. Are you ready for public scrutiny?
   Regardless of the board, public listing means transparency, quarterly reporting, and shareholder accountability.

The Bottom Line: Aligning Your IPO Path with Your Growth Vision

Both the Mainboard and Catalist play vital roles in fueling Singapore’s vibrant capital market ecosystem. The Mainboard offers a platform for stability, prestige, and institutional growth, while Catalist champions innovation and entrepreneurial ambition.

Ultimately, the best choice depends on your company’s maturity, financial standing, and long-term goals. Many successful businesses begin their journey on Catalist and later migrate to the Mainboard as they expand, a path that demonstrates SGX’s flexibility in supporting evolving corporate needs.

Whether you’re a tech startup aiming to scale or an established enterprise ready to globalize, Singapore’s dual-board system provides a clear and supportive pathway to raise capital, enhance visibility, and unlock future growth. The key is to choose the board that not only fits your current profile but also aligns with your strategic vision for the future.

The Founder’s Dilemma: Building with a Venture Studio vs. Going It Alone in the MENA Region

Across the Middle East and North Africa (MENA), entrepreneurship is booming. Young innovators are transforming industries, governments are investing heavily in digital economies, and capital is increasingly flowing into startups. Yet for founders, one critical question remains:
Should I build my startup independently, or partner with a venture studio?

This choice, often called the founder’s dilemma, can define the trajectory of a startup. Both paths have the potential to lead to success, but they differ significantly in resources, control, and risk. As MENA’s innovation ecosystem matures, understanding these differences is more important than ever.

Understanding the Venture Studio Model

A venture studio is not just an investor; it’s a company that creates startups from scratch. Unlike venture capital firms that fund existing founders, studios generate business ideas internally, test them, and assemble teams to build them. 

They provide everything a startup needs in its early stages:

• Market research and ideation

• Product design and engineering

• Branding and go-to-market strategy

• Legal and financial setup

• Access to investors and partners

In return, venture studios typically retain a significant equity stake in the startup. For founders, joining a studio often means sharing ownership for shared success.

Going It Alone: The Independent Founder’s Journey

Building a startup independently is the traditional path, one that offers complete autonomy. Founders have full control over the vision, direction, and equity. However, this freedom comes with challenges, especially in MENA’s still-evolving startup ecosystem.

Independent founders often face:

• Limited access to capital and investors

• Gaps in technical or operational expertise

• Difficulty navigating local regulations and markets

• Longer timeframes to validate and scale an idea

While independence allows founders to move according to their instincts, it also exposes them to higher risks and slower progress,  especially without strong networks or experience.

The Venture Studio Advantage: Shared Strengths, Lower Risk

For many aspiring entrepreneurs, venture studios provide a compelling alternative to starting alone. They reduce uncertainty by combining capital, talent, and infrastructure within a single ecosystem.

Here’s how studios reshape the founder journey in MENA:

1. Access to Immediate Resources

Founders who join venture studios don’t start from zero. They inherit a support system that includes designers, developers, marketers, and financial experts. This enables them to transition from idea to launch in months rather than years.

2. Faster Validation and Market Entry

Studios rely on data-driven validation processes, testing product-market fit early and eliminating weak ideas quickly. In the MENA region, where consumer behavior varies significantly between markets such as the UAE, Egypt, and Saudi Arabia, this disciplined approach is invaluable.

3. Reduced Financial Pressure

Most studios fund the initial stages of development, meaning founders can focus on execution rather than fundraising. This stability attracts skilled professionals who might otherwise hesitate to join early-stage ventures.

4. Mentorship and Strategic Guidance

Venture studios are built by experienced operators, entrepreneurs, investors, and corporate leaders who have scaled startups before. Their mentorship helps new founders avoid common pitfalls, navigate regulations, and build scalable models from day one.

The Trade-Off: Equity vs. Autonomy

The primary consideration for founders is ownership. Venture studios typically retain between 30% to 60% equity in the startups they help create. While this may seem high, it’s important to remember that the founder is gaining access to millions of dollars’ worth of expertise, networks, and infrastructure.

Independent founders keep all their equity, but they also bear all the risk. Without capital or guidance, many early-stage ideas fail before reaching market traction.

The key question becomes:

“Do I prefer to own 100% of a small idea, or 40% of a big one with higher chances of success?”

How the MENA Context Shapes the Choice

MENA’s entrepreneurial landscape is unique. The region combines strong government support with fast-evolving private capital, but challenges remain, including fragmented markets, regulatory complexity, and a shortage of experienced startup talent.

That’s why the venture studio model is gaining momentum. Studios such as Enhance Ventures, Astrolabs, and Modus Capital have proven that this model can bridge gaps in knowledge, funding, and speed.

At the same time, the independent route still holds strong appeal for experienced entrepreneurs who already have market insight, technical skills, and access to investors.

In short:

• First-time founders or those with limited networks often thrive in a venture studio environment.

• Seasoned entrepreneurs may prefer the independence and full ownership that comes with building solo.

Hybrid Paths: The Future of Founding in MENA

Interestingly, new hybrid models are emerging across MENA. Some studios allow founders to bring their own ideas and co-build them using the studio’s resources, while retaining more equity. Others act as accelerators with shared ownership and operational support.

This flexibility reflects the maturing of the region’s ecosystem, where collaboration is replacing competition as the key to innovation.

Final Thought: Choosing the Right Path

The founder’s dilemma is not about right or wrong; it’s about fit.
Building with a venture studio offers structure, speed, and reduced risk,  ideal for founders seeking support and guidance. Going it alone offers independence and complete control,  ideal for those ready to navigate uncertainty with confidence.

In the end, success in MENA’s startup landscape depends less on how you start, and more on how strategically you build, validate, and grow.

Whether you choose to collaborate with a venture studio or chart your own course, the region’s entrepreneurial future holds immense promise,  for those bold enough to take the first step.