Why is Singapore trying so hard to attract American startups?

Singapore is already one of the most connected nations on Earth in terms of internet penetration, smartphone adoption, and more. Even so, the city-state wants to take thing even further by turning itself into the world’s first “smart city” and it intends to do this by pouring millions of dollar into attracting American startups.

Singapore has aspirations to become the world’s first “smart nation” and extended a $200 million fund to U.S. startups earlier this month. The fund, managed by Infocomm Investments, the venture capital arm of the Singaporean Government’s Infocomm Development Authority (IDA), was previously restricted to Singaporean companies and citizens. The country hopes the move will attract U.S. startups to Singapore to help accelerate its Smart Nation initiative and develop new, sustainable and viable solutions that will improve all aspects of Singaporean society and meet public needs.