- Southeast Asian startups saw funding decline 30% to $5.5 billion in 2023.
- Later funding stages bore the brunt of the tech winter.
- Fintech and ecommerce still led despite valuation drops across most sectors.
More deals, less cash
Southeast Asian startups clinched 855 investment deals in 2023 according to a new report, up from 760 deals in 2022.
But total capital raised slid to $5.5 billion, down over 30% year-over-year and the lowest amount since 2018.
The tech winter impacted later funding stages most, with declines in deal count and investment for Series B and beyond. But early-stage startups remained robust, with more deals and funding at the seed and Series A levels.
Tech winter hits later stages
By sector, SaaS, healthcare, and ecommerce saw the biggest increase in deals as investors focused on proven models.
Fintech and ecommerce continued dominating funding, although ecommerce dropped below pre-pandemic levels.
Valuations decreased across most sectors, especially in later stages.
Despite the chillier funding environment, SEA startups still clinched a high volume of deals in 2023.
But the tech downturn clearly dampened total capital invested in the region.
To read the original article in its entirety: https://www.techinasia.com/deal-count-rises-total-capital-raise-declines-sea-2023-report
