- SEA tech startup funding drops 59% in 2024’s first nine months
- FinTech, Enterprise Applications, and Retail lead despite declines
- Singapore remains the top funding destination in the region
Cash Flow Slowdown
Southeast Asian tech startups are weathering a harsh financial climate, seeing a 59% plunge in funding during the first nine months of 2024.
According to Tracxn, a global SaaS-based market intelligence platform, the region’s tech space secured only $2.3 billion, compared to $5.7 billion in the same period last year.
Across-the-Board Decline
The funding winter has hit all stages. Early-stage investments fell 30% to $1.2 billion, late-stage funding tumbled 79% to $721 million, and seed-stage funding dropped 39% to $341 million.
Only two $100M+ rounds were observed, down from nine in 2023. FinTech, Enterprise Applications, and Retail emerged as the top-performing sectors, despite significant declines.
Silver Linings Playbook
Despite the downturn, the SEA tech startup landscape remains resilient. The sector has raised over $85 billion to date and boasts 44 active unicorns.
Singapore leads in city-wise funding, raising $1.4 billion in the first nine months of 2024. East Ventures, 500 Global, and Wavemaker Partners stand out as all-time top investors in the region.
