A recent report on Singapore venture funding landscape by DealStreetAsia and Enterprise SG declared that Singapore continued to dominate equity funding in Southeast Asia (SEA) throughout 2022, despite the slowdown caused by back-to-back global crises.
In 2022, equity funding deal volume and value by Singapore-headquartered firms peaked in Q2 at US$3.19 billion and 176 deals. As a comparison, the peak number in 2021 was US$4.12 billion and 120 deals. Compared with 2020 numbers, the deal and volume in 2022 was still relatively higher at US$10.9 billion with 651 deals, though it did not match the level that the ecosystem reached in 2021 at US$11.1 billion with 730 deals.
However, amidst this slowdown, Singapore continued to dominate the share of equity funding in SEA with 56.3 per cent of deal volume, followed by Indonesia at 22.4 per cent and Vietnam at seven per cent.
Of these numbers, early-stage funding in Singapore maintains its upward trajectory at 568 deals in 2022.
“Seed and Series A deals see median value rise across the region,” the report highlighted. “Seed rounds get bigger as investor appetite grows for early stage deals.”
Navigating a recession: How founders can protect revenue as funding dries up
Of the top 20 equity funding deals in SEA in 2022, the top spot was secured by Lazada Group’s US$1.6 billion corporate funding round by Alibaba Group, followed by Coda Payments’s US$690 million Series C funding round.
Smart nation, digital economy dominate
The report divided the categories of investment in Singapore into four categories: Smart Nation and Digital Economy, Human Health and Potential, Urban Solutions and Sustainability, and Manufacturing, Trade, and Connectivity.
Despite peaking in 2020-2021, investment into Human Health and Potential dropped to 45 deals in 2022. Investments into Urban Solutions and Sustainability also dropped from 60 deals in 2020 to 53 deals in 2021, until it finally reached 21 deals in 2022.
The segment that enjoyed an increase in 2022 was Smart Nation and Digital Economy which reached 524 deals, only slightly decreasing from the 2021 number of 532. In SEA in general, Singapore also outraced this category with US$9 billion raised in total.
Under the Urban Solutions and Sustainability category, we saw an increase in the Greentech segment with 10 deals in 2022.
Despite the promises that the year 2022 brought, the report notes reasons to be cautious in 2023.
“Singapore venture capital market will face testing times in 2023 as a global recession seems likely. High prices are set to hit consumption and, in turn, impact business growth, while investors are likely to tighten their purse things as they prioritise robust unit economics and profitability,” the report writes.
—
Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.
Image Credit: S O C I A L . C U T on Unsplash
The post Report: Despite slowdown, Singapore continues to dominate equity funding in SEA appeared first on e27.