Investment in Southeast Asian tech startups down 13 per cent in first half

August 22, 2020 | 16:48

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Southeast Asian tech startups raised less money in the first half of 2020 due to the impact of the coronavirus pandemic but the decline is less than in other parts of the world.

investment in southeast asian tech startups down 13 per cent in first half

Southeast Asian tech startups raised less money in the first half of 2020

According to the latest report by Singapore-based venture capital firm Cento Ventures, Southeast Asian tech startups raised $5.6 billion of investments in the first half of 2020, down 13 per cent from the year earlier. This is less steep than the 16 per cent drop in India and the 21 per cent decline in the EU. Meanwhile, North America witnessed an 8 per cent decline in the given period.

The COVID-19 pandemic has dragged down deal activity globally but investors continued to fund growth-stage startups in areas that benefit from online activity. In Southeast Asia, investments of $10-50 million, typically known as Series B and C financing, totalled a record of $.2 billion in the first half, up 25 per cent from a year ago.

"All things considered, Southeast Asia held up surprisingly well," Dmitry Levit, a partner at Cento Ventures, said in an interview with Bloomberg.

He noted that growth in $10-150 million deals and the proliferation of $100 million companies seem to be the two powerful developments in the region in recent years.

Southeast Asian ride-hailing giant Gojek wrapped up a $1.2 billion investment in March. In May, Singapore's Ninja Van raised $279 million from backers including France's GeoPOst SA, scoring one of Southeast Asia's largest startup investments since the pandemic. Meanwhile, Vietnamese e-commerce platform Tiki wrapped up a $130 million investment from private equity fund Northstar Group, making the e-commerce operator one of the top five funded startups in Southeast Asia in the period.

By Thanh Van

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