Equity funding for Southeast Asian startups plummeted by 20.7 per cent year-on-year to US$1.85 billion across 229 deals in the first half of 2025, marking the weakest period in terms of both deal volume and value in over six years, per a new report.

The “Southeast Asia Startup Funding Report: H1 2025”, produced by DealStreetAsia in partnership with Filipino VC firm Kickstart Ventures, highlights a cautious investment landscape significantly influenced by prevailing macroeconomic uncertainties and increased scrutiny of governance standards.

Funding dynamics reflect cautious environment

Despite the significant decline, the report suggests a nuanced picture, particularly in the second quarter of 2025, where deployed capital more than doubled to US$1.28 billion compared with the first quarter’s US$0.58 billion. This indicates a shift towards larger, more strategic investments in companies demonstrating robust fundamentals, even as deal volumes remain subdued.

Also Read: “Don’t ‘out-bro’ your male colleagues”: Kickstart’s women leaders on gender diversity in VC

Minette Navarrete, Founder and Managing Partner at Kickstart Ventures, commented on the changing landscape, stating: “Global macroeconomic uncertainty and heightened governance scrutiny are reshaping the way capital flows into Southeast Asia. The bar for younger companies has risen considerably.”

Regional shifts and standout markets

The regional funding balance saw notable realignments. Singapore maintained its position as the primary fundraising hub, attracting nearly two-thirds of the total capital at US$1.21 billion. However, the city-state recorded its weakest semester, with 129 deals representing a 13 per cent drop compared with the second half of 2024 and a nearly 44 per cent year-on-year decline.

Indonesia, traditionally seen as a key growth engine, experienced a dramatic 67 per cent fall in investments to just US$78.5 million–its lowest figure on record. For the first time, Indonesia was surpassed by the Philippines, where startups collectively raised US$86.4 million, making it a standout performer in the challenging period.

In contrast, Vietnam emerged as a bright spot, with deal count rising from 17 to 23 and total proceeds surging by nearly 169 per cent to US$275 million. Malaysia also posted stronger results, with proceeds doubling to US$196 million, underpinned by milestone fundraises.

Early-stage challenges, late-stage resilience

Investor caution was particularly pronounced in early-stage funding. Transactions up to Series B declined to 219, the lowest level in six years, with proceeds falling to US$1.1 billion–a mere fraction of the H1 2022 peak of US$4.54 billion. This trend reflects a heightened emphasis on capital efficiency and profitability over rapid expansion for younger companies.

Navarrete elaborated, “Early-stage funding now demands sharper proof of capital efficiency, viable growth models, and teams that can be trusted for both market performance and good governance.”

Conversely, later-stage activity displayed resilience. Although only ten transactions were completed in the first half of 2025, these generated US$756 million, representing a 70 per cent increase in value compared with the preceding half-year. The median deal size for later-stage rounds also rose to US$60 million, indicating a concentration of capital in businesses with established scale, strong fundamentals, and credible exit strategies.

Navarrete noted that “capital at the later stage is consolidating behind companies that have demonstrated resilience and scale. This creates a more disciplined environment for both founders and investors.”

New unicorns emerge amidst selectivity

Despite the more selective funding environment, the region welcomed three new unicorns. Malaysia’s Ashita Group secured US$155 million at a unicorn valuation, while Singapore’s Thunes raised US$150 million, valuing it at US$1.42 billion. Digital asset bank Sygnum also crossed the US$1 billion valuation mark.

The report tracks a total of 58 Southeast Asian startups that have now achieved unicorn status.

Sectoral shifts: Fintech weakens, sustainability gains traction

Sectoral trends revealed a selective deployment of capital. Fintech maintained its lead with 57 transactions worth US$631 million, although both its volume and value declined to their lowest levels in over six years.

In contrast, health-tech recorded a strong rebound, doubling its proceeds to US$108 million, bolstered by Nuevocor’s US$45 million Series B round. Greentech also registered 20 transactions, despite a decline in overall value, while climate-focused startups sustained momentum with 34 transactions, predominantly in renewable energy, waste management, and low-carbon mobility.

Also Read: Startup funding in Southeast Asia sees a 9% uptick in August: Tracxn

Sustainability-linked sectors notably stood out, underscoring resilient investor interest in climate and health impact despite overall softened capital values.

Meanwhile, private debt activity weakened significantly, with proceeds falling to US$490 million (nearly half the level recorded in late 2024) as lenders narrowed their focus to revenue-generating companies with stronger repayment capacities.

Foundations for a healthier cycle

Navarrete underscored the long-term positive implications of these shifts: “The numbers tell us that Southeast Asia is not in decline, but in reset. Investors are no longer chasing growth at any cost, and founders are now challenged to build businesses that are disciplined, efficient, and resilient.”

She added: “The rebound in late-stage deal sizes and the emergence of new unicorns show that capital is still available, but it is increasingly directed toward companies that can prove their fundamentals and readiness for scale. This is a healthy recalibration for the region, laying stronger foundations for the next growth cycle.”

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The softer-than-expected Producer Price Index data for August, which showed a 0.1 per cent month-over-month decline, has fuelled expectations for a 25 basis point rate cut at the upcoming Fed meeting. July’s figures also underwent a downward revision, reinforcing the narrative of cooling inflation pressures that could ease the burden on consumers and businesses alike.

This development arrives at a pivotal moment, with core PPI rising 2.8 per cent year-over-year, below forecasts, suggesting that demand may soften further in the coming months. Traders now price in the rate cut with near certainty, viewing it as a supportive measure for economic growth without igniting undue inflationary risks.

This measured approach by the Fed strikes a balance, preventing overly aggressive easing that might destabilise the dollar while providing enough stimulus to sustain the ongoing recovery.

Legal twist in Fed leadership

Amid this backdrop, a notable legal twist has emerged in the Federal Reserve’s leadership dynamics. A US district court granted a temporary injunction blocking President Trump’s attempt to remove Fed Governor Lisa Cook, allowing her to remain in her position during ongoing legal proceedings. The ruling, issued by Judge Jia Cobb, underscores the protections embedded in the Federal Reserve Act, which permits removal of governors only for cause, though the term lacks a precise definition.

Cook, appointed during the prior administration, has advocated for policies emphasising economic equity and data-driven decisions, often clashing with the current White House’s preferences. The administration plans to appeal, but for now, this decision maintains continuity at the Fed, potentially averting disruptions ahead of key policy announcements.

From my perspective, such interventions highlight the importance of institutional independence, ensuring that monetary policy remains insulated from short-term political pressures, which ultimately benefits market stability.

Market reactions in equities and bonds

US equities reflected this buoyant sentiment, with major indices posting gains on September 10, 2025. The S&P 500 climbed 0.3 per cent to close at a record high of 6,512.61, driven by strength in the energy sector as oil prices rose. The Nasdaq Composite edged up 0.03 per cent, also hitting fresh peaks, as technology stocks were buoyed by anticipation of lower borrowing costs.

Also Read: Global markets ride the Fed wave, but can the rally last?

In contrast, the Dow Jones Industrial Average slipped 0.5 per cent, weighed down by select under-performers in industrial and consumer goods. Energy stocks led the advance, capitalising on heightened geopolitical tensions that pushed crude prices higher. Bond markets echoed this positivity, with the two-year Treasury yield dropping 1.5 basis points to 3.544 per cent and the 10-year yield falling 4.3 basis points to 4.045 per cent following robust demand at a recent note auction.

These movements signal investor confidence in a soft landing scenario, where inflation tames without derailing growth. This is a healthy rotation, with bonds attracting inflows as equities consolidate gains, setting the stage for sustained upward momentum if the Fed delivers as expected.

Currency and commodity movements

Currency and commodity markets displayed mixed but generally stable behaviour.

The US Dollar Index ended flat at 97.78, hovering near recent lows as rate cut bets tempered its appeal. Gold consolidated around US$3,640 per ounce, maintaining its safe-haven allure amid global uncertainties, though it faced mild profit-taking after recent highs. Brent crude advanced 1.7 per cent, climbing toward US$67 per barrel, propelled by escalating tensions between Russia and Poland alongside persistent Middle East instability.

These dynamics underscore the interplay between geopolitics and energy supply, with potential disruptions keeping prices elevated. Asian equity indices showed varied performance in early trading on September 11, while US futures pointed to a higher open, suggesting the positive mood could spill over.

In my opinion, commodities like oil and gold serve as barometers for broader risk appetite, and their current trajectories align with a world navigating recovery amid lingering threats.

SEC’s pivot on crypto regulation

Shifting focus to the regulatory landscape, SEC Chair Paul S. Atkins delivered a pivotal address at the Inaugural OECD Roundtable on Global Financial Markets in Paris on September 10, 2025, marking a transformative moment for digital assets. Atkins boldly proclaimed that crypto’s time has come, critiquing past reliance on enforcement actions that he argued stifled US competitiveness and drove innovation abroad. He highlighted how entrepreneurs wasted resources on legal defences rather than business development, labelling that era as history.

Introducing Project Crypto, Atkins outlined a shift toward a structured regulatory framework, promising transparent and predictable rules to foster domestic growth. This initiative aligns with President Trump’s directive to position America as the global leader in cryptocurrency, drawing on the President’s Working Group on Digital Asset Markets.

Key elements include modernising securities rules for blockchain, ensuring on-chain capital raising, and declaring that most crypto tokens do not qualify as securities. Atkins advocated for super-app platforms that integrate trading, lending, and staking under a single regulatory umbrella, with flexible custody options to empower users.

He praised Europe’s MiCA framework and called for international collaboration, emphasising the need for minimal intervention to protect investors while fostering competition. Reactions on social media platforms like X have been overwhelmingly positive, with users hailing it as a new dawn for the industry.

Also Read: Gold slumps, oil tanks, Bitcoin hangs by a thread: The global market meltdown no one saw coming

In my view, this pivot represents a long-overdue acknowledgment of crypto’s potential, rectifying years of adversarial oversight that hampered progress. By prioritising clarity over confrontation, the SEC could unlock trillions in economic value, attracting talent and capital back to US shores and solidifying the nation’s leadership in fintech.

Bitcoin’s technical and market outlook

This regulatory optimism has invigorated the cryptocurrency market, particularly Bitcoin, which trades above US$114,000 as of September 11, 2025, reflecting a 2.5 per cent gain over the past 24 hours. Technical indicators bolster a bullish outlook, with Bitcoin reclaiming its 7-day simple moving average at US$111,475 and 30-day exponential moving average at US$112,609. The MACD histogram has turned positive at +466.15, signalling building momentum, while the RSI-14 sits at 54.32, indicating neutral territory without overbought risks.

Historic Bollinger Bands have tightened to extreme levels, often preceding significant volatility. A completed cup-and-handle pattern suggests upward breakout potential. A shakeout pattern analysis points to the next milestone around US$130,000, with weakening resistance levels paving the way.

Institutional demand for Bitcoin ETFs continues to rise, countering the classic bull cycle correction phase. Holding above the 61.8 per cent Fibonacci retracement at US$113,836 affirms bullish control, and a close over US$115,864 could propel prices toward the US$120,000 to US$124,457 resistance zone. However, trading volume, up only 19.88 per cent from the 24-hour average, warrants caution regarding the rally’s sustainability. Discussions on X echo this sentiment, with analysts predicting surges to US$300,000 based on these metrics.

Personally, I align with the user’s prediction of US$150,000 by year-end, viewing it as achievable given the confluence of regulatory tailwinds, technical setups, and macroeconomic easing. Yet, I temper enthusiasm with realism, noting that low volumes could invite pullbacks if external shocks arise.

Final thoughts

Looking ahead, the interplay between these elements paints a promising picture for global finance. The Fed’s impending rate cut, combined with the SEC’s pro-crypto stance, could catalyse a virtuous cycle of investment and innovation. Bitcoin’s trajectory, supported by robust fundamentals, positions it as a bellwether for digital assets, potentially drawing in more mainstream adoption.

Challenges remain, including geopolitical risks that buoy oil but unsettle equities, as well as the ongoing legal battles at institutions such as the Fed. Nevertheless, the current buoyancy in risk sentiment feels grounded in data rather than hype.

I believe this moment heralds a maturation phase for crypto, where regulation enhances rather than hinders progress. If Project Crypto delivers on its promises, the US could indeed become the epicentre of blockchain advancement, benefiting investors, entrepreneurs, and the economy at large. The path forward demands vigilance, but the foundations appear stronger than ever.

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Siam Validus, a crowdfunding platform for small and medium-sized enterprises (SMEs) in Thailand, has announced its official membership with the Thailand National Credit Bureau (NCB).

This integration is expected to significantly enhance Siam Validus’s ability to provide digital, efficient, and responsible credit access to Thai SMEs.

Becoming an NCB member will enable Siam Validus to access credit bureau reports in real-time with SME consent, drastically reducing current turnaround times from two weeks to almost instantly.

Also Read: Venture debt: How it stacks up against loans and equity

Crucially, the platform will also be able to report SME exposures and payment records back into the national system, fostering a ‘virtuous cycle’ of transparency, faster decision-making, and stronger credit profiles for SMEs.

Anand Periwal, CEO of Siam Validus, said: “Access to credit continues to be a key barrier for SMEs, which account for a large proportion of Thai businesses and contribute over 35 per cent of GDP. By joining the NCB, we are not only accelerating loan approvals through faster access to credit data but also ensuring that SMEs’ positive repayment histories are recorded to unlock larger opportunities in the future.”

Siam Validus, which holds over 50 per cent market share in SME crowdfunding in Thailand, is a joint venture between Validus Group, a leading digital supply chain financing platform that has facilitated over US$5 billion in SME loans across ASEAN, and SCG Distribution. The platform provides unsecured lending to SMEs within closed-loop supply chains through its crowdfunding licence.

Looking ahead, Siam Validus is in advanced discussions with leading domestic and international financial institutions to raise additional funds for deployment within transaction-backed supply chain ecosystems. The company is also actively exploring opportunities to expand its offerings to large companies, providing financing solutions to ease their account receivables and accounts payables by granting easy access to unsecured financing for their suppliers and buyers.

Also Read: Tech SMEs play key role in fuelling Asia’s digital economy boom

In May this year, Validus Group and Fintech Nation, which builds sustainable and inclusive ecosystems for startups and SMEs, formed a US$10 million Embedded Finance Fund to support SMEs across Thailand and Indonesia.

A month earlier, Singapore-based digital bank GXS Bank acquired Validus Capital, the Singaporean subsidiary of Validus Group.

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Singaporean consumers are early adopters of artificial intelligence, drawn to its efficiency and speed in everyday interactions. However, a new report by customer communications firm Sinch reveals that a strong demand for trust, relevance, and human connection tempers this enthusiasm.

The State of Customer Communications report, released on September 9, surveyed over 600 consumers across Singapore, India, and Australia. It highlights a critical balancing act facing businesses in Singapore: leveraging AI without undermining consumer expectations for safety and personal interaction.

The research highlights a nuanced adoption curve. While 45 per cent of Singaporean respondents said they would use AI-powered customer support if backed by credible brand information, only four per cent would choose AI or chatbots as their first choice for resolving issues—underscoring ongoing concerns around privacy and accuracy.

This selective comfort with AI extends to sectors such as healthcare and finance. Although 57 per cent of respondents are fine with using AI for tasks such as booking appointments, 68 per cent express doubts about the accuracy of AI-generated medical responses.

Also Read: Southeast Asia startup capital falls 21 per cent, lowest in over six years

Similarly, half of all Singaporeans would still prefer to talk to a human when dealing with fraud concerns in financial services.

The report also outlines a growing tension between consumers’ desire for tailored experiences and their unease over data usage. While many Singaporeans appreciate AI-driven recommendations, 44 per cent say they only welcome them if they are genuinely helpful. Misguided or irrelevant suggestions could lead to customer churn rather than loyalty.

This phenomenon, dubbed the “personalisation paradox,” has strategic implications for brands. Getting personalisation right can deepen customer engagement. Get it wrong, and it risks eroding the trust companies are trying to build.

“Singaporean consumers are proven early adopters, embracing the efficiency and convenience that AI brings to their brand experiences,” said Wendy Johnstone, EVP APAC at Sinch.

“Our research makes it clear that trust and human connection remain essential. The businesses that will win are those that blend digital efficiency with the human touch, giving customers control and choice at every step.”

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Image Credit: Andy Kelly on Unsplash

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When I became a certified personal trainer, I didn’t imagine that some of my most meaningful insights would come from the quiet, determined strength of women in midlife. What started as a weekend commitment to coach a few clients slowly evolved into something more meaningful: a front-row seat to how overlooked and underserved this demographic often is in both health and technology.

These women weren’t chasing six-pack abs or trying to squeeze into pre-pandemic jeans. Many were quietly navigating menopause, post-pregnancy shifts, career transitions, and the emotional weight of caring for both children and ageing parents. Through every hesitant squat and self-conscious glance in the mirror, they offered a window into a user group that is rarely considered in product design.

Health equity, I’ve come to learn, isn’t only about access for rural or low income groups. It also means asking who’s being left out of the conversation and which products are unintentionally being excluded.

The midlife gap in health innovation

In Southeast Asia, we’re seeing a surge in digital health startups. AI-powered diagnostics, mindfulness apps, wellness platforms, they’re all booming. But scan through pitch decks, and the typical user personas often fall into two camps: young, tech-savvy urban millennials or elderly patients in rural areas.

Also Read: How the global growth of fintech defies age and gender

Left in the shadows? Women aged 35 to 55. They’re juggling careers, caregiving, and their own changing bodies. They are usually financially independent and digitally literate, yet their needs often go unaddressed or get generalised under broader user categories.

During training sessions, I often hear:

“I just want to feel strong again.”

“I’m not sure if this is stress or age.”

“Everything feels like it’s made for 20 year olds.”

These aren’t one off comments. They’re recurring patterns, insights hiding in plain sight.

Confidence before conversion

Confidence, not capability, is often the invisible barrier. These women are disciplined. They show up. But their bodies are changing, and that makes them second guess themselves.

When a health app asks them to count macros without accounting for perimenopause, it can feel out of touch. When a program suggests simply “sleep more,” they might laugh or cry. A wearable might praise their step count while ignoring chronic insomnia or low energy.

Through personal coaching, I found that celebrating small, consistent effort worked better than chasing metrics. Replacing “burn 300 calories” with “you made time for yourself today” had a bigger impact than expected.

And when that message landed, commitment followed.

Also Read: Singapore’s ageing population: Tech and new scientific discoveries may calm the silver tsunami

What inclusive design could look like

If more health tech builders sat in my coaching shoes, they might notice the same quiet needs I did. Based on these lessons, here are a few gentle design nudges that could go a long way:

• Menopause aware design: Acknowledge the experience. Add resources for hormonal changes, disrupted sleep, or joint discomfort. Sometimes, just seeing those words in an app is a relief.
• Flexible goals: Instead of focusing solely on aesthetics or performance, offer goals like increased energy, reduced stress, or simply being able to carry groceries with ease.
• Respectful, empowering tone: Avoid cheerleading or condescension. Speak as if to a peer, not a patient.
• Supportive communities: Leaderboards and competitive stats can backfire. What resonates more are peerled spaces for sharing stories and setbacks without judgment.
• Real-world feedback loops: Test new features with real women in this demographic. Their input is often more nuanced and more valuable than what metrics alone can show.

The coach’s perspective

Coaching taught me to observe what’s not being said. If someone skips a session, is it because they’re too busy or because they feel they’ve failed? The difference matters.

When a client quietly admits she almost didn’t come because she felt ashamed of her progress, that’s not a personal failure; it’s a design challenge waiting to be solved.

Founders often say, “we want to solve real problems.” But that takes more than user surveys. It takes sitting in discomfort, showing up with empathy, and noticing the unspoken.

Designing with, not for

If we’re building health tech for real impact, we might ask:

Are we acknowledging confidence changes with age? Are we including those juggling care and career? Do we invite users back kindly when they miss a day or do we guilt them with streak reminders?

These aren’t just design tweaks. They reflect whether a product truly sees the user or just their data.

Closing reflections

Working with women in midlife continues to shift how I view inclusion. It’s no longer about checking boxes for representation. It’s about listening better, designing more gently, and recognising that strength looks different at different stages of life.

In tech, we often ask: “Does the market need this?” But perhaps another question is just as vital: “Would this make someone feel seen?”

If we start there, we don’t just build for health equity. We build with it.

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