CASE STUDY 7: Taiwan-Based Company P Establishes in Singapore and Secures Successful Funding from International Investors

Company Overview

Company P is a cutting-edge technology firm from Taiwan, specializing in developing hardware and software products related to artificial intelligence (AI), the Internet of Things (IoT), and automation. Recognizing the need to further expand and realize its business potential, Company P sought access to international capital and global market expansion. Specifically, they aimed to attract international investors to develop products and expand into Southeast Asia and other major markets.

After researching opportunities and challenges, Company P decided to establish an office and development center in Singapore—a global financial hub and an ideal destination for technology startups.

Challenges Before Entering the Singapore Market

• Difficulties Accessing International Investors: Before establishing a presence in Singapore, Company P struggled to access funding from international investors, particularly venture capitalists (VCs) and large investment funds. The absence of a presence in a global financial hub like Singapore made it difficult to build trust and attract investor interest.
• Competitive Environment in the Technology Sector: The technology sector, especially AI and IoT, is highly competitive. Companies in Singapore and Southeast Asia are also rapidly developing in these areas. Company P needed a distinct strategy to stand out and attract international investor attention.
• Complex Fundraising Process: Raising capital from international investors requires a robust legal and business foundation. Venture capitalists often seek assurance of legal and financial stability and sustainable scalability before investing.

Solution: Establishing a Company in Singapore

Company P decided to establish a company in Singapore to leverage its financial opportunities and strategic advantages. Key elements of Company P's strategy include:

1. Singapore – Global Financial Hub
   
   
   • Singapore is a leading global financial center with a stable business environment and transparent legal system. This was a primary reason for Company P's decision to establish an office there.
   • This strategic location allowed Company P to access not only the Singaporean market but also expand into Southeast Asian markets, where demand for advanced technology solutions like AI and IoT is surging. This facilitated access to business partners, customers, and international investors.
2. Support from the Singaporean Government and Favorable Tax Policies
   
   
   • Singapore offers support programs and tax incentives for startups, particularly in technology and innovation. The Singaporean government has launched initiatives to promote technology company development, including funding programs, research and development support, and tax incentives for startups.
   • Company P leveraged these opportunities to reduce operating costs and increase development capacity. Singapore's low corporate tax rate (17%) and government financial support helped Company P save costs and focus on developing advanced technology products.
3. Building a Talented Team and Developing Products
   
   
   • Singapore has a highly skilled workforce in technology, especially AI, IoT, and software. Company P quickly recruited local and international technology experts to build a strong product development team.
   • Establishing a presence in Singapore also facilitated collaboration with leading research institutes and educational organizations, enhancing the quality of Company P's technology products and attracting investor attention.
4. Fundraising from International Investors
   
   
   • After establishing a company in Singapore and building a solid legal foundation, Company P initiated a fundraising campaign targeting venture capitalists and international investment funds. As a global financial center, Singapore attracts numerous investors and venture capital funds. Company P organized fundraising events, met with investors, and participated in technology events to engage with major investors.
   • International investment funds recognized Company P's business model and growth potential in AI and IoT, as well as its presence in Singapore—a crucial destination for global technology companies. This solid foundation and Singapore's supportive environment enabled Company P to successfully raise capital from venture capitalists, fueling its continued development and international market expansion.

Results After Entering the Singapore Market

• Attracted International Investment Capital: After establishing a company in Singapore, Company P successfully raised capital from numerous international investors, including venture capital funds from the US, Japan, and European countries. This investment capital enabled the company to expand its scale and enhance its research and development capabilities.
• Rapid Growth in Southeast Asia: A presence in Singapore facilitated Company P's rapid access to the Southeast Asian market, where demand for AI and IoT technology is increasing. The company's products have been applied in various sectors such as manufacturing, transportation, and healthcare in regional countries.
• Built a Strong Brand: Singapore helped Company P build a strong brand in the technology sector, particularly in AI and IoT. Company P became a prominent name in the regional technology community and was highly regarded by international partners.
• Created Opportunities for Collaboration with Major Companies: With a presence in Singapore, Company P created strategic collaboration opportunities with major regional and global companies, opening doors to larger projects and contracts.

Conclusion

Establishing a company in Singapore enabled Company P to access international capital, build a robust foundation for developing advanced technology products, and expand into the Southeast Asian market. With supportive policies from the Singaporean government, a favorable business environment, and support from international investors, Company P achieved significant success and solidified its position in the global technology industry.

SME HUB supported Company P during the establishment of its company in Singapore, providing legal, tax, and fundraising strategy consulting services, helping Company P achieve its fundraising goals and grow strongly in Southeast Asia and globally.