The National University of Singapore is ramping up investments in its own spinouts as VC funding in south-east Asia for early stage companies falls to a decade low.
The National University of Singapore is seeking to cement its position as a hub for deep tech expertise through the expansion of NUS Enterprise, the commercialisation arm of the country’s largest university.
In the past six months, it has launched a $120m fund to invest in its spinouts as well as early-stage venture capital funds. It has hired two VC experts – Patrick Ennis and Donna See – to advise on scaling global ventures. It also opened an office in Tokyo, Japan, to help its spinouts gain access to the Japanese and south-east Asian markets.
NUS Enterprise plans to establish locations in Silicon Valley in the US, as well as in Europe and China.
The ultimate aim is for “Singapore to be recognised globally as a launch pad for deep tech ventures,” says Sian Wee Tan, senior vice president of innovation and enterprise at the National University of Singapore (NUS).
“We will have outposts globally in innovation hubs, driving venture grade spinouts. We will be looking at cross border talent, intellectual property and market access right from the beginning,” he says.
The time is ripe for NUS to realise its goal of becoming a globally ranked university, says Tan. He estimates the university has spent $60bn over the past 30 years building out its academic and research capabilities. It also sees a role in filling a vacuum left by the private markets as venture capital funding for early-stage startups in Southeast Asia has fallen to a 10-year low.
“It is very difficult to get venture capital now in Southeast Asia for these kinds of long-term investments,” says Tan. “We need to build out a launching capability to take these innovations into the right places where they can be developed into companies.”
Tan himself comes from an entrepreneurial and venture capital background. He has cofounded two companies and worked in fundraising and venture capital at Singapore VCs Monk’s Hill Ventures and elev8.vc.
The university’s new fund has an evergreen structure, a reflection of the fact that much of its research is in early stage deep tech requiring long term investment horizons. Its 1,600 researchers work on a variety of technologies including photonic-based semiconductor technology, mechanical and synthetic biology, and quantum computing.
Spinouts include B1Neuro, an MRI-guided transcranial magnetic stimulation technology for treating depression; Nanolumi, an advanced materials company based on perovskite quantum dot technology; and Roseco Technologies, a soft robotics company for helping patients with limb motor function impairments.
The NUS fund will channel close to $80m into supporting its own spinouts, with the option to co-invest with VC partners. The remaining $40m will be allocated to investing in six VC funds. It has so far invested in Granite Asia, a multi-asset investment firm, and 4BIO Capital, a life sciences investor.
NUS Enterprise also has agreements with SG Growth Capital, an investment fund of the Singapore government, and family office Lotus One Investment to jointly finance NUS spinouts.
With a strong pipeline of startups emerging from the university, Tan is seeking to access global VC markets for both hiring talent as well as securing funding.
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In July this year, NUS Enterprise hired Patrick Ennis, venture partner at US VC Madrona Venture Group, to advise the commercialisation arm on research translation policy, incubation, startup evaluation, venture investment strategy and international expansion.
It also hired Donna See, CEO of Singapore-based deep tech investor Xora Innovation, which has invested in spinouts from the university, to advise on improving the translation of research and helping the unit to compete globally.
Ultimately, Tan’s goal is to generate more than a billion dollars in financial returns from investments in NUS spinouts and have at least one venture based on its intellectual property generate more than $100m in annual revenue.
“We’re looking at the long term for this. This is a minimum 10-year journey. That is the operational goal,” says Tan.
