Singapore overtakes San Francisco to become the world’s top startup hub

According to HubSpot’s 2025 Hypergrowth Startup Index, Singapore has surpassed San Francisco as the world’s leading hub for startup growth. The city-state’s meteoric rise in the global startup ecosystem reflects a broader shift toward Asia as a growing center of innovation fueled by foreign investment, government incentives and a business-friendly environment that continues to attract entrepreneurs and multinational corporations alike.

The report, based on PitchBook data and expert opinions, notes that investors are prioritizing sustainable and realistic business models. The average deal size for such startups has increased by 43%, from $35 million in 2023 to $50 million in 2024. Energy startups were the leaders in terms of growth (+37% per year), slightly ahead of the IT sector (+36%).

Business services and B2B companies with a long-term approach have begun to receive more attention than projects without a clear business strategy. This suggests that investors are increasingly choosing practicality and sustainability.

The interest in Singapore goes far beyond the startup scene. The Dynamic Wealth Indices report from Savills named it the best city in the world for corporate relocations. The reasons are a stable influx of foreign direct investment, a competitive tax system and access to skilled labor. Against this background, other major cities – Seoul, New York, London and Abu Dhabi – are still left behind.

The interest in Singapore is not limited to startups. According to another report, Dynamic Wealth Indices from Savills, it is the best place in the world for corporate relocations. The reasons are simple: a high level of foreign direct investment, a favorable tax system and the availability of skilled labor.

Singapore is especially convenient for small and medium-sized businesses. Companies get access to tax incentives, transparent rules and modern infrastructure. This allows not only to quickly launch a business but also to scale up confidently.

Today, almost half of the business exits here are M&A (43%), while IPOs account for only 6%. This shows that the local ecosystem is focused on sustainable growth and long-term strategies rather than quick and risky exits.

Singapore is one of the top five cities in the world for personal relocation. It is on par with Dubai, Abu Dhabi, Zurich and Auckland. Low taxes, a high standard of living and a favorable environment for entrepreneurs make it an excellent choice for those who want to relocate not only a company but also a family.

As Ashley Swan of Savills Singapore notes, Singapore’s success is the result of thoughtful government policies, investment in infrastructure and a stable regulatory environment. “Multinational corporations benefit greatly once they establish a presence here,” he emphasizes.