Startup funding falls across Asia, but China shows relative resilience - PingWes...

Startup funding falls across Asia, but China shows relative resilience

Startup funding falls across Asia, but China shows relative resilience

August 16, 2023 4:26 am

Startup fundraising in Asia's key markets declined in the second quarter of 2023, compared with a year ago, with Southeast Asia and India experiencing the steepest falls.

According to DealStreetAsia's data, startups headquartered in Southeast Asia raised $2.13 billion in the second quarter, down 58.6% from $5.13 billion in the same period of 2022. 

Vietnam surpassed Indonesia in terms of funding volume. In the April-June quarter, Indonesian startups raised $327 million in total equity funding in the second quarter, while Vietnamese startups raised $413 million in total proceeds. 

India, which has been on the fast track in recent years thanks to its manufacturing and export growth, has also taken a hit. It witnessed fundraising from private equity and venture capital investors plunged 57%, from $7.56 billion to $3.22 billion.

In contrast, Chinese startup funding showcased relative resilience. Privately-held companies in the country secured $10.9 billion in the June quarter, a slight dip of 3.36% from the $11.28 billion raised in the same period last year. 

While the number may appear not bad at first glance, it's worth noting that it's down a whopping 25.3% from the first quarter.

The impact of geopolitical tensions could curtail China's financing growth in the second half of 2023, DealStreetAsia said, adding that US President Joe Biden signed an executive order on Wednesday that will strictly prohibit US investment in certain sensitive technologies in China.

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