Investment in ASEAN "technology companies" drops 34.5%, new startups

Investment in ASEAN “technology companies” drops 34.5%, new startups are starting to notice. Fewer contingencies and longer incubation periods help diversify risk.

On February 29, 2567, The Business Times reported that a report by venture capital firm January Capital , which obtained information from Alternatives.pe and Tracxn, stated that:

Investment in private technology companies in Southeast Asia fell 34.5% to $5.5 billion in 2566, despite an increase in the number of deals. This is because venture capitalists redirect funds to newer companies.

The report found that the number of agreements will increase from 760 agreements in 2565 to 855 agreements in 2566.

Early stage investment This is a company that has just opened or has been in operation for only a few years. is getting attention Fewer investment commitments and longer incubation periods help diversify risk in an uncertain economy.

January Capital's analysis reveals that the average deal size at the start of 2566 is $2.1 million, compared to $23.5 million at Series B.

Tech dealmaking peaks in 2564 amid COVID-19 surge This pushes funding to $1.45 billion from 868 deals.

The report noted a higher-than-usual amount of large-scale fundraising that year. They can raise at least US$100 million in each round. Overall, more than $11,000 billion has been committed to companies at Series B and above, by 2566 this number has dropped to $3.3 billion.

Funding in Series B companies decreased from more than $2 billion in 2565 to more than $1 billion in 2566.

The report said The amount of capital invested in Series B/C companies continues to decrease somewhat. It cited a majority decline in limited Series D/E transactions in 2566.

E-commerce, fintech , and software-a-service (SaaS) remain the largest contributors to funding and crowdfunding in Southeast Asia's technology sector. However, the proportion of funding going into e-commerce is declining from 54% in 2562 to 10% in 2566 as the regional startup ecosystem matures and other businesses emerge.

The share of fintech funding continues to grow from 15% in 2562 to 31% in 2566. The report also notes a sharp increase in sustainability startups. Companies such as Blue Planet Environmental Solutions and Cosmos Innovation received funding.

Reference: businesstimes.com.sg

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