How a Singapore based single family office is backing deep tech startups

Canaan Ventures, a Singapore based single family office, is leveraging its venture capital arm to back transformative startups in fields like MedTech and sensor technology. While the firm remains sector-agnostic, its recent investments reflects a focus on high-impact, innovative solutions that address

 "We’re backing unique and compelling ideas and entrepreneurs,” said Leonard Yap, the principal of Canaan Ventures.

Leonard Yap

Canaan Ventures

CRITICAL CHALLENGES

The family has a background in real estate investing and has started investing in startups through its venture capital arm around five years back.

"We don’t want to pigeonhole ourselves into certain sectors because that would limit us. We look for transformative companies that solve problems in overlooked areas."

As an example, in the MedTech space, the family office has supported a groundbreaking technology that enables medical grade, non-invasive diagnostics of biomarkers such as glucose, lactate and alcohol, long been considered as the holy grail in diagnostics.

“Imagine moving critical healthcare monitoring out of hospitals, significantly lightening the burden on healthcare systems,” Yap shared.

What convinced Yap and his team to back the venture was its rigorous third-party validation from leading institutions and its potential to reduce  mortality rates in critical care settings.

Similarly, in sensor technology, Canaan Ventures has invested in a company developing low-power, high-resolution sensors that bridge the gap between the physical and digital worlds. “

"We’re entering a world where sensors will become essential for spatial intelligence," Yap observed.

“Again, the approach taken by the startup is revolutionary and could transform industries,” he added.

THE NUMBERS TELL THE STORY

According to GrandView Research, the global smart sensors market size was valued at $51.42 billion in 2023 and is expected to grow at a compound growth rate (CAGR) of 19% from 2024 to 2030. The proliferation of connected devices, which rely heavily on smart sensors for data collection and transmission is driving the demand for smart sensors.

As for MedTech, Statista estimates the market to demonstrate a steady annual growth rate of 5.29% from 2024 to 2029, to reach a market volume of $772.5 billion by 2029.

"We’re opportunistic. It’s not about being deeply embedded in a sector but about backing visionary entrepreneurs and truly innovative technologies that address significant challenges," Yap said, explaining the family office's investment approach.

STRATEGIC DILIGENCE AND CONTRARIAN APPROACH

Canaan Ventures employs a meticulous and collaborative approach to due diligence. Yap noted that while the family office relies on external experts and personal networks for sector-specific insights, they themselves also play an active role in evaluating investments.

“We take a skeptical stance until proven otherwise,” he shared. “Flagging risks early and de-risking them through diligence is central to our approach.”

The family office also places importance on independent opinions, a mindset shaped by Yap’s belief in contrarian investing.

"True opportunities often lie in overlooked areas,” he said. "Chasing popular deals often drives up valuations, but we focus on areas others might not yet understand or appreciate."

To avoid spreading itself too thin, Canaan Ventures limits its portfolio to about 10 companies, ensuring deep engagement with each one.

“We act as co-builders rather than passive investors,” Yap shared.

"This includes helping with fundraising, commercial strategy, and recruitment. Early-stage companies especially value such support because it goes beyond capital.”

Leonard highlighted the importance of collaboration in venture capital.

"We like to bring in other investors who can add value,” he said. “It’s not a one-person job; aligned partnerships are crucial for the growth of the startups we back."

Canaan Ventures focuses on startups based in the US and Europe, regions.

“There’s a lot of untapped opportunity in Asia, but much of the cutting-edge innovation—particularly in sectors like MedTech and deep tech, still originates in the West,” Yap observed

This hands-on approach is matched by Yap’s drive to stay ahead of industry trends.

"You have to be aggressive in sourcing deals and building relationships,” he shared.

THE OVERALL APPROACH

Yap’s approach exemplifies the growing trend of family offices embracing venture capital to access innovation and private market returns.

Also read - Family offices make up over one-third of Australian private market investors

A March 2024 Pitchbook report highlights that over the next 25 years, an estimated USD 100 trillion will transfer to younger generations, largely through family offices as millennials and Gen Z assume control. This generational shift promises a capital influx not only for heirs but also for the venture capital industry.

Yap emphasised the long-term advantages family offices bring to the venture space.

"Family offices have the time horizon and risk appetite to back truly innovative companies,” he observed. “They can take risks where traditional VC firms might hesitate, especially in deep tech or early-stage ventures."