Dear reader,
The surge in startup shutdowns through 2024 underscores a sobering reality: the unchecked exuberance of the pandemic-era funding boom is finally catching up with the ecosystem. The numbers tell a clear story—25.6 per cent more startups dissolved in 2024 than the year prior, with a disproportionate hit to early-stage companies.
While the headlines may feel grim, this wave of closures isn’t surprising. It’s the natural outcome of too many companies receiving capital during 2020 and 2021, often with little due diligence and unsustainable valuations.
The funding frenzy encouraged many founders to scale prematurely, adopting unsustainable burn rates and chasing growth over profitability. When the macroeconomic tide turned—with interest rate hikes and a dip in venture funding—many were left without lifeboats. Enterprise SaaS, consumer, and health-tech startups bore the brunt, but no sector emerged unscathed.
While 2025 may bring more casualties, this isn’t just a story of failure—it’s a rebalancing. The ecosystem is recalibrating toward healthier valuations and more robust business fundamentals.
Amidst the noise of “tech zombies” and closures, a new generation of startups is emerging, leaner and more focused. For founders and investors alike, this is a moment to reflect on the lessons of excess and to build resilience at the forefront.
Sainul,
Editor.
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NEWS & VIEWS
2025 will likely be another brutal year of failed startups, data suggests
‘Shutdowns increased from 2023 to 2024 in every stage. But there were more companies funded (with bigger rounds) in 2020 and 2021. So we would expect shutdowns to increase just by nature of VC naturally’.
YouTube, Circles.Life founders invest in Elev8.vc’s US$30M deeptech fund
Elev8.vc will support early-stage deeptech startups across various sectors, including AI, medtech, robotics, and advanced manufacturing | The VC firm aims to back 20-30 high-potential startups.
Trump says Microsoft is in talks to acquire TikTok
Trump has previously said that he was in discussions with several parties about purchasing TikTok and expects to make a decision on the app’s future within the next 30 days.
129Knots launches with US$10M funding to revolutionise real-world asset trading
Sing Fuels is the lead investor | 129Knots’s OTD technology delivers scalable liquidity solutions via secure chain technologies | This elevates supply chains into high-value assets that meet investment-grade standards.
B Capital appoints Yan-David Erlich as General Partner
Yan-David Erlich will be based in San Francisco and help lead B Capital’s technology and AI investments across venture and growth companies.
Indian news giants sue OpenAI over copyright violations
NDTV, Network18, the Indian Express, and Hindustan Times submitted a petition in a New Delhi court, claiming ChatGPT scraped their content | they claim this negatively impacts their businesses.
DeepSeek unveils cost-efficient AI model to rival OpenAI
The Chinese AI firm model R1 reportedly matches or outperforms OpenAI’s o1 on some benchmarks | It claims that the cost to train its model was US$5.6M, significantly lower than the hundreds of millions spent by some leading US companies.
Perplexity’s new TikTok bid could give US government 50% stake
The proposal indicate that the government would hold non-voting shares and have no representatives on the board | ByteDance would retain some involvement but must transfer proprietary algorithms that influence the app’s user experience.
SG’s Everstone buys majority stake in SaaS firm Wingify
According to a statement from Everstone, the deal is valued at US$300M | Wingify targets international markets, with a large portion of its software solutions sold in the United States and Europe.
EV car sales to top 20M in 2025, research firm says
Europe, the world’s second-biggest EV market, will return to sales growth as CO2 emission targets come into effect and cheaper models become available, but the pace will remain slower than in 2023, Rho Motion Head of Research, Iola Hughes, said.
KuCoin pleads guilty, agrees to pay nearly US$300M in US crypto case
Peken Global, which operates as KuCoin, entered its plea before US District Judge Andrew Carter in Manhattan | The plea includes a US$112.9M criminal fine and US$184.5M forfeiture, and calls for KuCoin to exit the US market for at least two years.
FEATURES & INTERVIEWS
From SoftBank to UOB: A guide to Southeast Asia’s corporate VC leaders
Discover Southeast Asia’s top corporate VC firms driving innovation, supporting startups, and shaping the region’s dynamic tech ecosystem.
‘Thai startups face challenges in funding, corporate engagement, global expansion’: A2D Ventures
‘While Thailand has incredible potential, there are gaps in scaling venture opportunities and exposure to global mentors’.
Talents remain an issue in AI proliferation, but here are 6 steps that businesses can take to tackle it
According to the report, collaboration between human talent and AI remains a focal point for today’s executives.
FROM THE ARCHIVES
AI and automation: Transforming India’s lending landscape
When it comes to artificial intelligence and the process of lending and managing loans, it has provided lenders with the ability to originate loans more quickly and gain a deeper understanding of their customers’ creditworthiness.
Can a small business owner be sustainable in a sustainable manner?
When we talk about sustainability to a normal consumer, they will probably be most familiar with the 3Rs that have been inculcated in us since young. But how many of us really went out of our way to put all that into practice?
How to increase conversion rates at checkout for your business
If your checkout is good, customers will most likely buy, so what can be done to ensure your checkout is set up to increase your conversions?
Why the future of AI needs more diversity and the arts
Diversity is about accepting differences and not forcing men, women, NLP engineers, data artists, and decision scientists to fit into the same mould.
How e-commerce businesses can unlock growth using alternative funding
To tackle the challenges that lie ahead, the e-commerce industry should begin utilising alternative modes of funding to optimise their growth.
How to improve your app’s user experience with a new UI modality
For consumer-facing apps, teams might be interested in conversion rates or engagement | For applications used by professionals such as CRMs and ERPs, the most important goal might be to improve data quality and completed tasks.
Old school, new rules: Retro rewinds and redefines cool
Retro isn’t just about reliving the past; it’s about finding comfort and simplicity in a world that often feels overwhelmingly complex.
The benefits of custom skills-based training in the modern workforce
For rapid staff development in the modern workforce, there is no better place to look than custom learning and development training.
Human-driven interaction in an AI-driven world
There is a fine balance that needs to be struck between the magic of AI and the wonder of human centred innovation | If the balance is tilted too far towards AI, organisations may end up losing customers.
What companies can do to stay agile in the future of work
The new workspace ecosystem is a big challenge but it should also be treated as an opportunity to reap the benefits presented by a more flexible way of working.
How the three faces theory explains identity issues and the rise of bots
The theory suggests that the first face we show to the world | The second face is reserved for family and friends, and the third face is reserved for us alone | Perhaps, the latter is our truest self.
Greentech revolution: Catalysing software’s success to drive a sustainable future
The delivery models and enterprise-wide integration associated with the software must also mature and manifest for Greentech.
Bridging the carbon data gap: How predictive insights for data sustainability are revolutionising emission accounting
Overcoming the challenges of fragmented data in carbon emission accounting is crucial for achieving global sustainability goals.
Building a better future: How sustainable architecture is leading the way for the built environment
The built environment sector is expected to focus increasingly on sustainable architecture as environmental concerns continue to grow.
Unlocking hidden gold: How overlooked wet waste streams hold profit potential despite challenges
Wet waste presents a unique challenge due to its exceptionally high water content, often exceeding 80 per cent of the waste’s mass.
On the precipice of energy transition
The combustion of fossil fuels such as coal, oil and natural gas causes large amounts of greenhouse gases to be released into the atmosphere, trapping heat and causing global temperatures to rise | This leads to climate change.
Why the education sector needs a lesson in ad fraud
Education marketers need to be fully aware of the digital advertising supply chain which requires more trust and transparency.
Retention in e-learning: Data analytics and crypto find their way into vogue
While personalised learning has started to make the mark in increasing the retention rate, using crypto to provide incentives in a “study-to-earn” mechanism is evincing interest among educators.
How e-commerce merchants can capture growth in international markets
With third-party digital platforms and partners making cross-border e-commerce more accessible, it is easy to capture global market opportunities now.
Empowering youth to drive sustainable change through finance and advocacy
Sustainable Finance Simplified offers educational materials to keep up with the latest trends and developments.
How hybrid learning is revolutionising the landscape of education
Countries in the Asia Pacific are at various levels of development when it comes to digital infrastructure and perspectives toward hybrid learning.
Embracing AI in education: Expanding horizons for students
AI is not a threat but an aid to educators, capable of improving personalization, comprehension, and efficiency for all students.
Is mentorship a powerful tool for solving startup challenges and addressing economic concerns?
A supportive ecosystem that develops and grows companies enabling them to attain their full potential, can be created by effective mentorship.
From crunching numbers to transforming data: How I made a career switch from accounting to tech
My experience in tech has given me countless opportunities to work in technical roles or to impart my knowledge.
Breaking barriers: How crypto is disrupting education funding
Cryptocurrency and blockchain can empower education companies to access global investors and new funding sources and drive growth and impact.
THOUGHT LEADERSHIP
Geopolitical risks and economic opportunities: A market overview on global trends
Global markets are navigating a mix of risks and opportunities, driven by geopolitical tensions, economic data, and central bank policies.
Why startup founders should become published authors
A founder’s journey goes beyond scaling—it’s about building a lasting story that inspires and connects with audiences for years to come.
Together for tomorrow: The role of collaboration in disaster tech innovation
The strategic partnership among Prudence Foundation, IFRC, AWS, and e27 are driving innovative disaster tech solutions to mitigate risks and accelerate recovery efforts.
Autonomy vs anarchy: How do we secure the future of autonomous transportation?
The future of autonomous transportation is bright, but its success hinges on public trust and safety | As these technologies become more prevalent, the industry must prioritise cybersecurity at every stage.
The human factor: B2B marketing in 2025
The winners in 2025 won’t be those with the most advanced AI tools or the biggest content engines but will come those who master a new marketing equation—one that combines the scale of AI with the irreplaceable elements of human insight.
Preparing your cybersecurity strategy for 2025: Adapting to the rise of AI
Cybersecurity is not just a technical duty but a business enabler; make 2025 the year your organisation thrives securely in the AI era.
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