Dear Pro member,
Investments in Southeast Asian startups plummeted by 25% in H1 2023, reverting to pre-pandemic levels, as per a new study. This decline highlights challenges tied to shifting investor sentiment, economic uncertainties, and evolving market trends.
Notably, investment focus shifted towards early-stage startups, particularly in seed and Series A stages, resulting in a 41% increase in completed deals compared to the previous year.
Singapore and Indonesia remained the bright spots. While the city-state experienced a 60% surge in deal numbers and a 19% increase in invested capital, the archipelago saw steady deal counts but a 44% yo-y drop in total capital invested.
A surge in “top-up” rounds with a 315% y-o-y increase was observed, mainly at the series A stage. Valuations for Series A and B firms dropped by 34% and 42%, respectively, while seed-stage valuations stayed stable.
Overall, the joint report by January Capital, Venture Cap Insights, and Tracxn points to a bleak future for the region, at least for the next few months. But a rise in early-stage deals brings cheers to the region.
Take a look at the other major headlines also.
Editor,
Sainul.
————
Total VC funding in SEA declines by 25% in H1 2023: Tracxn
One notable trend that emerged during the period was the shift in investment focus toward early-stage startups, particularly in the seed and series A stages; Geographically, Singapore and Indonesia remained focal points for VC funding.
LingoAce lays off hundreds amid expansion hurdles
The edutech startup axed hundreds of employees in China, the US, Singapore, Indonesia, and Thailand in about half a dozen rounds of layoffs in the past year.
Indonesia agri-fintech startup PasarMIKRO nets investment from DEG, Ceniarth
PasarMIKRO focuses on empowering smallholder farmers, fishermen, and traders in Indonesia; It will use the money to expand its trade and trade finance service offerings.
Chat-based bank client onboarding startup Boost Capital raises US$2.5M
The investors include Village Global, Iterative Ventures, and Hustle Fund; Boost Capital enables financial institutions to digitally onboard applicants for loans, savings, credit cards, and insurance quickly.
SG’s healthtech startup Neurowyzr raises US$2.1M
Peak XV is the lead investor; Neurowyzr is a deep neuroscience using the latest discoveries in neuroscience to optimise corporate and population brain health and performance.
Naman Jhawar to head India and Southeast Asia ops of German VC firm Picus Capital
Picus Capital is set to increase its investments in Southeast Asia, with a focus on fintech, enterprise software, and climate tech.
AI startup Anthropic raises US$100M from Korea’s SK Telecom
The telco says Anthropic and SKT plan to co-develop a multilingual large language model customized for global telco firms.
US-based Plug and Play partners Enterprise Singapore
They will launch the Global Innovation Alliance (GIA) San Francisco Acceleration Program, providing an opportunity for Singapore startups to explore and expand their products in the dynamic tech hub of San Francisco and the US.
Blockchain gaming sees US$300M summer funding boost
In June 2023, funds going into Web3 gaming dropped to its lowest for the year at US$68M; This was mainly because of tough challenges in the market.
Tokocrypto shelves IPO plans after Binance buy-in
Tokocrypto CEO Yudhono Rawis said Tokocrypto is currently well-capitalised and has a healthy cost base; Tokocrypto was preparing to go public by 2024 or 2025.
Vingroup founder’s e-bike hailing service debuts in Vietnam
Green and Smart Mobility (GSM) has officially launched its e-motorcycle hailing service Green SM Bike in Hanoi; The launch of Green SM Bike follows the roll-out of GSM’s e-taxi hailing service in April this year.
‘Unlike traditional accelerators, Accel Atoms provides a more personalised learning environment’
The Atoms programme, targeted at startups in India, SEA and the UAE, also offers several other benefits, says Accel Prayank Swaroop.
Meet the new 10 investors joining the e27 Connect platform
These investors come from different geographies and invest in different stages and verticals.
Rise of generative AI in search: Exploring opportunities for APAC brands
Generative AI’s conversational ability and real-time training could fundamentally transform how users engage with search.
—
Growth Charger
Growth Charger incubates, accelerates and builds businesses.
Verticals: Agritech, healthtech, education, smart cities, biotech, consumer, finance, AI and, Big Data
Based in: Malaysia
Investment locations: Malaysia, Singapore, Thailand, Vietnam, the Philippines, and Indonesia
Stages: Pre-seed, seed, and pre-Series A/bridge
Investment range: US$10K to US$50K.
—
The post Ecosystem Roundup: VC funding in SEA down 25% in H1 2023; Job cuts at LingoAce appeared first on e27.