Startup funding in Southeast Asia faced a substantial 65 per cent decline in H1 (January 01-June 10) 2024, according to a report by global SaaS-based market intelligence platform Tracxn.
The funding stood at US$1.6 billion in H1 this year compared to US$4.5 billion in H1 2023 and US$2.5 billion in H2 2023.
Southeast Asia ranked ninth globally in terms of tech startup funding in H1 2024.
Also Read: SEA startups raised US$371M across 42 rounds in March: Tracxn report
As per the Geo Semi-Annual Report: SEA Tech H1 2024, late-stage funding was the worst hit, which fell 69 per cent to US$421 million in H1 2024 from US$1.3 billion in H2 2023 and an 86 per cent plunge from US$3 billion raised in H1 2023.
Early-stage investments stood at US$946 million in H1 2024, a decline of 19 per cent from US$1.2 billion in H1 2023. However, this is an 8 per cent uptick over H2 2023.
Seed-stage financing dropped to US$234 million in H1 2024 from US$407 million in H1 2023 and US$323 million in H2 2023.
In Q2 (April 01 to June 10) 2024, startups raised US$477 million, an 85 per cent decrease from US$3.16 billion in Q2 2023 and 57 per cent lower than US$1.12 billion raised in Q1 2024. Notably, this period witnessed two major funding rounds exceeding US$100 million: ANEXT Bank (US$148 million Series D) and GuildFi (US$140 million in Series A).
No new unicorns were created in H1 2024, as against one in H1 2023.
However, acquisition activity increased, with 36 companies, compared with 30 in H1 2023 and 42 in H2 2023.
MaNaDr, RYDE, and Topindoku were the only three companies to go public in H1 2024. Only three IPOs took place, a decline from seven in H1 2023 and four in H2 2023.
The leading sectors in terms of performance in H1 2024 were fintech, hightech, and enterprise applications. Fintech firms attracted US$851 million in H1 2023, a 20 per cent drop from US$1.07 billion raised in H1 2023. Funding in the hightech segment stood at US$476 million, a 47 per cent jump from US$323 million in H1 2023.
The enterprise applications sector witnessed a 49 per cent decrease in funding, from US$775 million in the first half of 2023 to US$393 million in H1 2024.
Singapore led the region in terms of total funds raised in H1, followed by Jakarta and Bangkok. Tech startups based in Singapore raised US$1.1 billion in H1 2024, while those based in Jakarta and Bangkok raised US$185 million and US$150 million, respectively.
Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023: Tracxn
East Ventures, 500 Global, and Wavemaker Partners emerged as the overall top investors in the SEA ecosystem in H1 2024.
SEEDS Capital, Temasek, and Seventure Partners were the leading early-stage investors in H1 2024, while MUFG Innovation, NewView Capital, and Avataar Ventures topped the late-stage investment charts. Antler, 500 Global Ventures, and East Ventures topped seed-stage funding in H1 2024.
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