Singapore state investment company Temasek Holdings has slashed investments in early-stage companies by more than 88% since 2021, according to a report in the Financial Times.

It quotes data from research firm Tracxn showing that Temasek’s investments in startups plunged from US$4.4 billion in 2021 to $509 million in 2024. The number of first-round investments it made in private firms dived from 82 to 11 over the same period.

“Temasek’s investment portfolio has taken some pretty big hits in recent years. They are changing their approach to get more diversity and also reduce the volatility of returns,” a fund manager briefed on the state investment firm’s strategy is quoted as saying.

Temasek has in recent years written down millions of dollars invested in several collapsed startups, including crypto exchange FTX and Indonesian agritech company eFishery. 

Temasek will continue to invest in startups indirectly through venture capital funds, but will now focus direct investments on firms that are closer to going public, according to the report, citing people with knowledge of the state investor’s approach.

Temasek’s net portfolio value was S$389 billion ($288 billion) as of end-March 2025.