APAC’s cybersecurity sector slowed noticeably in 2025 as investors shifted from broad dealmaking to fewer, higher-conviction bets, according to Tracxn.
While the region has raised US$8.35 billion to date over the years, annual inflows have declined sharply since peaking in 2021. In 2025, APAC startups attracted just US$185.2 million, down 27.7 per cent year-on-year, with deal volume falling to 43 rounds, reflecting stricter investor scrutiny and higher expectations for proven go-to-market traction.
This pullback contrasts with global momentum, where cybersecurity funding rose 41 per cent to US$14.6 billion despite fewer rounds overall. Within APAC, early-stage activity remained resilient, with US$138.8 million deployed, up 15 per cent year-on-year.
However, seed funding declined 34 per cent to US$25.1 million, and late-stage funding collapsed 78 per cent to US$21 million, highlighting a growing shortage of scaling capital.
Funding remained concentrated in a few markets, led by India (US$116 million), followed by Australia (US$32.1 million) and Singapore (US$24 million). Application security and data security emerged as key growth segments, while Kasada, FireCompass, and CloudSEK led the year’s biggest rounds.
Looking ahead, Tracxn expects 2026 to favour mature, enterprise-ready cybersecurity firms focused on integration, resilience and measurable ROI.
REGIONAL
DayOne’s US$2B round supercharges SEA’s January funding: Southeast Asia’s startups raised US$2.04B in January, marking a sharp rebound from the end of last year. According to Tracxn, the figure represents a 315.29% jump from December 2025 and a 152.11% increase YoY.
Singapore’s next payments chapter will be written by AI and tokenised money: Several trends shaping the next phase of payments innovation are embedded finance and super apps and AI-powered payments and tokenised deposits and regulated stablecoins.
Indonesia urges ASEAN action on AI deepfakes, disinformation: Authorities highlighted the importance of cross-border mechanisms to combat malicious AI use, citing fragmented regulations as a challenge. AI’s potential benefits should be balanced with safeguards to protect public interest and social equity.
Indonesian plant-based meat startup Green Rebel raises US$12.5M: Its current investors include Unovis NCAP Fund II, Teja Ventures, and Agfunder. The company aims to develop plant-based alternatives tailored to Asian tastes and is part of the growing foodtech sector in Southeast Asia.
FEATURES & INTERVIEWS
NASA built SpaceX. Can Singapore build SEA’s space champions?: The opening of the Space agency is a starting signal. For founders, VCs, and technologists, it should be treated as an opportunity to build onshore capabilities and an invitation to move faster, design for regulatory interoperability, and think regionally.
Cheryl Goh’s global win signals Southeast Asia’s marketing maturity: Rather than treating marketing as awareness-building alone, she appears to have operated with a tight link between brand activity and measurable business performance. Grab’s growth has depended heavily on repeat usage and ecosystem behaviour.
Stablecoins are becoming ‘dollars as a service’ for emerging markets: Stablecoins preserve purchasing power and lower the friction of moving value across borders. Regions — where local currencies are volatile, or banking infrastructure is costly and slow — have shown robust adoption of dollar-pegged digital assets.
In a world of copyable AI, founders with scars win: The 2025 Endeavor Catalyst Annual Report highlights a marked shift: investors are increasingly backing entrepreneurs who have already paid the price of scaling companies: the “scars and instincts” that come from building in markets such as São Paulo, Lagos, and Istanbul.
INTERNATIONAL
Coupang data breach hits 165,000 more accounts: The initial breach involved roughly 33.7M accounts. Information exposed included names, phone numbers, and addresses, but no transaction or login data was compromised. Hackers accessed data from about 3,000 accounts, which was later deleted without sharing it with third parties.
Anthropic, Palantir AI spark drop in Indian IT stocks: Anthropic’s automation initiatives have raised concerns about potential impacts on IT sector revenues. Shares of Indian software exporters fell 0.7% on February 5, after a 6% drop the previous day. The decline came amid fears that AI-driven automation from Anthropic and Palantir could shorten project timelines.
US House panel summons Coupang over trade practices: The House Judiciary Committee has issued a subpoena to Coupang as part of an investigation into alleged discrimination against US firms. The committee is requesting communications between Coupang and the South Korean government and has called on the company to testify.
SpaceX acquires xAI via triangular merger: The move allows SpaceX to avoid repaying billions in debt and provided tax benefits to xAI shareholders. The transaction keeps xAI as a wholly owned subsidiary, separating its liabilities and legal risks from SpaceX, which aims to protect itself from investigations and litigation.
CYBERSECURITY
Global cybersecurity heats up, and APAC cools off: Tracxn’s dataset shows funding peaked in 2021 (about US$1.7B that year) and has tapered since. In 2025, the region attracted US$185.2M, representing a 27.7% YoY decline from 2024. The number of rounds also contracted to 43, down 27.1% YOY.
AI at machine speed: What 2026 holds for cybercrime and enterprise security: AI agents are supercharging cybercrime in 2026, automating reconnaissance and attacks, forcing organisations to shift from perimeter defence towards resilient, data-centric security models built on identity and lifecycle control.
Why protecting data today means proving you can restore trust: Privacy has shifted from policies to proof: organisations must demonstrate control, clean recovery and resilience under disruption to protect data, meet regulation, and sustain trust in an AI-driven, cloud-first world.
Cybersecurity and data governance in the boardroom: A strategic imperative for Asian boards: Cybersecurity and data governance are now board-level priorities in Asia, demanding strategic oversight, real-time monitoring, scenario planning and cultural accountability to protect enterprise value, trust, compliance, and long-term resilience.
Beyond the hype: What generative AI is actually changing in startups: Generative AI is reshaping startups by accelerating build cycles, enabling workflow-based products, and shifting defensibility towards trust, integration, reliability and data loops, while raising the bar for real-world performance, economics, and governance.
SEMICONDUCTOR
US chipmaker Microchip forecasts weak profit on memory shortages: Microchip forecasts weaker Q4 earnings due to global memory shortages, sending shares down over 5 per cent. Despite beating Q3 estimates, reduced smartphone and PC orders are weighing on demand.
Taiwan’s ASE forecasts its advanced chip packaging to hit US$3.2B: The company made the projection during a conference call after reporting a Q4 revenue of US$5.6B, a 9.6% increase from the previous year. Its net income for the quarter rose by 58%.
Qualcomm posts US$12.3B revenue in Q1 2026: The firm’s Q1 fiscal 2026 results, with record revenues of US$12.25B, up 5% from the previous year. The company’s GAAP net income was US$3B, and non-GAAP EPS reached 3.5. Revenue growth was driven mainly by its QCT segment, which includes handset, automotive, and IoT products.
AMD shares plunge 17% after cautious Q1 outlook: AMD’s This marks its worst day since 2017, after the company issued a cautious outlook despite beating Q4 earnings estimates. CEO Lisa Su said demand for AI and data centre products has increased in recent months, with the company’s data centre business accelerating from Q4 into Q1.
AI
Endeavor report shows AI is eating venture capital alive: Global venture capital is rebounding but increasingly polarised, with AI megadeals dominating funding, squeezing non-AI startups while disciplined, domain-driven companies in emerging markets find selective opportunities amid shifting investor priorities.
The AI-energy paradox: Will AI spark a green energy revolution or deepen the global energy crisis?: AI’s energy use is rising fast, but AI can also cut emissions by optimising data centres, grids and industry. Long-term sustainability depends on efficiency gains and massive renewable expansion.
AI can’t replace doctors, but it can catch disease before they do: MASH remains massively undiagnosed despite huge costs, but new therapies shift the bottleneck to scalable detection. AI-powered liquid biopsies and cross-disciplinary innovation could enable early screening, personalised care, and better outcomes.
Nvidia CEO predicts India will build its own AI infrastructure: Jensen Huang said that India will develop its own AI infrastructure, including data centres and chips, emphasising AI as essential to modern nations. Huang compared AI to utilities like water and electricity, suggesting every country needs its own systems.
THOUGHT LEADERSHIP
Markets on edge: AI rally fizzles as crypto plunges below US$2.42T: Markets turned risk-off as AI optimism faded, mixed US data fuelled Fed-cut speculation, tech sold off, volatility rose, commodities rallied, and crypto plunged amid leveraged liquidations and fragile macro sentiment.
When streaming prices ignore how people actually watch: Indonesia’s OTT boom highlights a mismatch between rigid subscription pricing and intent-driven viewing habits, fuelling subscription fatigue, churn, and piracy despite strong content availability and platform competition.
Ex-PayPal risk leader’s AI exposes credit underwriting’s hidden flaw: Kevin Lee’s TrustPlus AI tackles finance’s “judgment deficit,” automating credit underwriting preparation to reclaim analyst focus, cutting workflows from 16 hours to two.
Why visibility in the AI era is a design problem, not a discipline one: In the AI era, consistency is no longer about discipline but system design, where micro habits and AI-assisted workflows create sustainable visibility, leverage, and communication without burnout.
Why your 50s are the perfect time to start a business: At 50, after major health challenges and shifting tech waves, the writer argues it may be the best time to start a business, citing experience, networks, financial stability, purpose, and higher success odds.
How social media and public relations work together to drive brand success: Social media has reshaped public relations by boosting visibility, enabling real-time crisis response, expanding content distribution, and providing measurable insights, while influencer partnerships and ethical storytelling help brands build trust and engagement.
Fractional hiring, distilled: Fractional work challenges traditional career ladders, offering flexibility and efficiency, but founders must ensure fractional leaders enhance their vision, not dilute it through mismatched corporate instincts.
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