Startups in the Southeast Asian region secured US$816 million in funding in Q1 2024 (till March 15), a 40 per cent decline cent from the previous quarter’s US$1.36 billion and a 13 per cent drop from the US$935 million raised in Q1 2023.
The drop is primarily attributed to an 80 per cent decline in late-stage deals, which stood at US$175 million compared to US$860 million in Q4 2023, reveals a report by startup data research platform Tracxn.
Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023
The region’s ecosystem received its highest quarterly funding in Q4 2021, after which there has been a steady decline.
In Q1 2024, seed-stage funding stood at US$115 million, a 36 per cent decrease from US$173 million recorded in Q4 2023 and 48 per cent lower than the US$220 million raised in the same period last year.
However, early-stage investments surged 60.86 per cent to US$526 million in Q1 2024, as against US$327 million in Q4 2023 (till December 15, 2023).
No big investment deals (worth US$100 million+) were reported in Q1. Only three Singapore-incorporated companies (DCS Card Centre, Capillary, and Motorist) raised over US$50 million each during the quarter.
Fintech, enterprise applications, and retail were the top-performing sectors in Q1 2024.
An uptick was observed in the number of acquisitions: 21 in Q1 2024 compared to 16 in Q4 2023 and 12 in Q1 2023.
Also Read: Startup investments in SEA see 44% monthly rise in February: Tracxn
Yet again, Singapore (US$604 million) took the lead among Southeast Asian cities in terms of startup funding, followed by Jakarta (US$85.7 million) and Ho Chi Minh City (US$33.2 million).
East Ventures, 500 Global, and Wavemaker Partners are the all-time most active SEA investors overall. Antler, HashKey Capital, and 500 Global were the top investors in seed-stage investors in Q1 2024, while UOB, Peak XV Partners, and Openspace Ventures were the most active investors in terms of early-stage investments.
Avataar Ventures and Filter Capital were the top late-stage investors in Q1 2024.
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