Preview SE Asia Deal Review Q1 2024
Preview SE Asia Deal Review Q1 2024
Preview SE Asia Deal Review Q1 2024
April 2024
This report focuses on fundraising by private companies in Southeast Asia in the fourth quarter of 2023. While
we provide historical data for context, more details on fundraising performance in previous quarters can be
found on DealStreetAsia’s Reports page.
All data cited in this report is based on industry reports, company announcements, media reports, regulatory
filings and DealStreetAsia's research.
Considering the opaque nature of the Southeast Asian market, we strive to constantly update our data to ensure
accuracy. If you spot an error or inaccuracy, please let us know at [email protected] and/or
[email protected].
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Table of Contents
Anaemic start of the year 4 Software & IT soared on demand for blockchain solutions 26
Key findings 5-8 Blockchain solution providers cornered market in Q1 27
Singapore remained epicentre of blockchain innovations 28
Regional overview Climate awareness drove green tech investments 29
Funding value fell to lowest in more than five years 10 Waste management lost momentum after strong 2023 30
Early-stage transactions drive equity deal volume 11 E-commerce plunged despite rebound in consumption 31
Philippines nearly matched Indonesia in terms of deal value 12 Indonesia, Singapore held back regional performance 32
Late-stage deal volume continued to decline 13 E-commerce: Funding crunch felt across all funding stages 33
Late-stage funding proceeds fell 81% YoY 14
Pre-seed and seed deals lifted early-stage volume 15 Country review
Seed to Series B median values showed diverging trajectory 16 Singapore 35-36
Not a single deal surpassed $100 million in Q1 2024 17 Indonesia 37-38
High-value deals continued downward slide 18 Malaysia 39-40
Top 20 equity deals in Q1 2024 19 Vietnam 41-42
Philippines 43-44
Deal trendspotting Thailand 45-46
E-commerce dropped out of top 10 verticals by deal value 21
Fintech recovered as DeFi startups found new momentum 22 Insider Insights 48-52
Wealthtech regained top spot among fintech startups 23
Top three fintech categories humbled by liquidity crunch 24 Disclaimer & Terms of Use 53
Decentralised Finance got boost from crypto market recovery 25 Contact Us 54
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Anaemic
After a deep correction in 2023, shortening the timelines for achieving
expectations were high for a rebound in breakeven or profitability by reducing
venture capital investments in marketing expenses and raising take
the year
E-commerce firms were among those
fell to the lowest levels in over five
that recorded the highest declines in
years on the back of a continued global
Q1, securing the lowest quarterly
liquidity crunch, dampening valuations
performance on record and extending a
and risk appetites for big-ticket funding
downward trend that began with the
rounds.
start of the global monetary tightening
While it remains too early to say in 2022. Meanwhile, fintech saw a
whether 2024 will likely underperform, glimmer of recovery, especially in
startups beyond the seed stage are decentralised finance and crypto,
undoubtedly faced with a challenging driven by renewed investor interest.
task. In order to secure funding in a However, the volatile nature of crypto
tough macroeconomic environment, markets and regulatory uncertainties
they must demonstrate superior mean investors remain cautiously
margins relative to their competitors. optimistic about the sustainability of
Simultaneously, they are tasked with this rebound.
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Key findings
A sluggish start. Southeast Asia's startup
fundraising landscape had a mixed start in the
first quarter of 2024. Deal volume recovered
slightly, with 180 equity transactions
surpassing the previous quarter's 164 deals.
However, the total private capital raised
plummeted to its lowest level in five years; the
Q1 haul of $1 billion was less than half that of
Q4 2023 and a significant 41% drop compared
to Q1 2023. This stark decline reflects the
ongoing global liquidity crunch, which has
particularly dampened late-stage funding. For
context, funding for Southeast Asia-based
startups peaked in Q4 2021 with a staggering
$8 billion raised, followed by a volume peak of
312 deals in Q1 2022.
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Regional Overview
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Southeast Asia
Funding value fell to lowest in more than five years
Equity vs debt funding value per quarter
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Southeast Asia
Early-stage transactions drove equity deal volume
Equity vs debt funding volume per quarter
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Southeast Asia
Philippines nearly matched Indonesia in terms of deal value
Equity funding volume & value by HQ location Share of equity funding value by HQ location
Southeast Asia
Late-stage deal volume continued to decline
Quarterly equity deal volume by investment stage
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Southeast Asia
Late-stage funding proceeds fell 81% YoY
Quarterly equity deal value by investment stage
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Southeast Asia
Pre-seed and seed deals lifted early-stage volume
Quarterly deal volume by funding round
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Southeast Asia
Seed to Series B median values showed diverging trajectory
Median value of equity funding deals by stage Average value of equity funding deals by stage
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Southeast Asia
Not a single deal surpassed $100 million in Q1 2024
Quarterly equity deal volume by funding range
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Southeast Asia
High-value deals continued downward slide
Number of equity deals greater than $100 million per quarter
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Deal Trendspotting
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Trendspotting
E-commerce dropped out of top 10 verticals by deal value
Top 10 verticals by equity deal volume Top 10 verticals by equity deal value
Fintech
Fintech recovered as DeFi startups found new momentum
Equity funding for fintech firms per quarter Share of equity deal value for fintech by HQ
Fintech
Wealthtech regained top spot among fintech startups
Fintech categories based on deal volume in Q1 2024 Top 10 fintech deals in Q1 2024
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Fintech
Top three fintech categories humbled by liquidity crunch
First quarter performance of top 3 fintech categories by volume First quarter performance of top 3 fintech categories by value
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Fintech
Decentralised Finance got boost from crypto market recovery
Share of deal volume: DeFi versus TradFi Share of deal value: DeFi versus TradFi
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Software & IT
Software & IT soared on demand for blockchain solutions
Equity funding for software & IT solutions providers per quarter
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Software & IT
Blockchain solution providers cornered market in Q1
Equity funding for software & IT solutions providers per quarter
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Software & IT
Singapore remained epicentre of blockchain innovations
Share of funding by volume (inner) and value (outer) in Q1 2024 Top 10 Software & IT deals in Q1 2024
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Green tech
Climate awareness drove green tech investments
Equity funding for green tech firms per quarter
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Green tech
Waste management lost momentum after strong 2023
Top 2 most active green tech categories by volume since 2020 All green tech deals in Q1 2024
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E-commerce
E-commerce plunged despite rebound in consumption
Equity funding for e-commerce firms per quarter
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E-commerce
Indonesia, Singapore held back regional performance
Equity funding volume in top two most active markets
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E-commerce
Funding crunch felt across all funding stages
Equity deal volume in e-commerce by investment stage All e-commerce deals in Q1 2024
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Country Review
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Singapore
Deal volume surged to highest in seven quarters
Equity funding for Singaporean firms
Singapore
Late-stage funding value dropped to all-time low
Equity funding volume by investment stage Share of early vs late stage funding value per quarter
Indonesia
Sluggish start to the year for Indonesian startups
Equity funding for Indonesian firms
Indonesia
Late-stage drought continued in Q1
Equity funding volume per investment stage Share of early vs late stage funding value per quarter
Malaysia
Funding for local startups hit four-quarter low
Equity funding for Malaysian firms
Malaysia
No late-stage deals recorded in Q1
Equity funding volume by investment stage Share of early vs late stage funding value per quarter
Vietnam
Vietnam maintained course in a tough climate
Equity funding for Vietnamese firms
Vietnam
Crypto market revival may positively influence outlook
Equity funding volume by investment stage Share of early vs late stage funding value per quarter
Philippines
Philippines still a long way from achieving potential
Equity funding for Philippine firms
Philippines
Late-stage transactions remain scarce
Equity funding volume by investment stage Share of early vs late stage funding value per quarter
Thailand
Deal volume slowed to a trickle in Q1
Equity funding for Thai firms
Thailand
Second consecutive quarter with no late-stage deals
Equity funding volume by investment stage Share of early vs late stage funding value per quarter
Insider Insights
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despite the geopolitical turbulence happening to build large and impactful tech companies in SEA. your portfolio companies?
throughout the rest of the world. In many cases, the We expect the next ten years to bring even more
region’s neutrality has benefitted from some of the innovation led by visionary startup founders. Fundraising is always difficult, even in the best of
developments. times, and being a startup founder is about having the
Are there specific sectors or types of startups that resilience, grit and foresight to keep the company
The global supply chain diversification away from you believe are more likely to achieve successful afloat.
China has resulted in record levels of FDIs flowing into exits in the near future? If so, what factors contribute
the region - attributed to both global players as well as to their attractiveness to potential acquirers or The quicker the company achieves healthy
Chinese companies and exceeding flows into China for public markets? fundamentals, the more control it has over its destiny.
the second consecutive year in 2022. Markets like Think of it as a two-axis problem: profitability and
Vietnam, Malaysia, Thailand, and Indonesia stand to In my view, the goal posts have not shifted - the runway. The higher your margins are, the slower your
benefit and we’re watching this space closely to see market has always valued assets that demonstrate or cash depletion, buying you more runway. The lower
how it positively impacts the startup landscape. are on a clear path to profitability coupled with your margins are, the quicker you run out of cash.
growing, sizable revenues where tech is an enabler to When you have that leeway, you have more control
Post-Covid, we’re also seeing swelling domestic scale. In order to achieve this, founders have to target over how much you invest in growth, with a path to
consumption patterns attributed to a pick-up in travel a problem with a large enough market and come up achieving “default alive”. This is a muscle that
as well as a growing middle class that is insulating the with not just a 10x better tech solution, but also an companies are getting better at in lean times.
region against some of the incoming headwinds. innovative business model to acquire customers and
capture value. As board members, we help companies make
Another mitigating factor is SEA’s increasing strategically critical decisions that move them
participation in the global green transition. The While the SEA landscape is relatively nascent, it is towards high-quality revenue models. We also
existing OEM base and availability of precious gradually building up a track record. When companies provide hands-on help with capital planning
minerals such as nickel and other rare and base now focus on building high-quality revenues with supported by a dedicated in-house Corporate
material, puts SEA in a good position to absorb the improving margins, exits will become a matter of Development team to complement our high-touch
increasing demand in electric vehicles (EVs) and “when” and “how”, not “if.” engagement model with our portfolio companies.
interest in green technology.
In the event of prolonged market downturns or Amidst the current bullish cryptocurrency market
The last ten years have shown us that it is possible unexpected challenges, what contingency plans do conditions, what specific areas within the broader
you have in place to facilitate successful exits for blockchain and DeFi ecosystems are you specifically
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targeting for new investment opportunities? What amongst many other factors.
thesis or characteristics are you focusing on to
identify the most promising sectors or use cases?
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Blockchain, and the various applications it has made
possible, have struggled to find real-world use cases.
While the jury is still out, we may be at the cusp of
seeing some interesting opportunities. Across the
region, governments are selectively encouraging the
adoption and use of blockchain technology on a wider
scale.
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traction due to lower customer acquisition costs, but of Indonesia, Singapore, and Vietnam. However, VC
they also need to demonstrate growth for which investment strategies are likely to incorporate a
companies have only an indirect impact. cautious approach towards co-investing with Chinese
partners.
How do you plan to capitalize on the expected global
monetary easing vis-à-vis US Fed interest rate cuts?
Are there any adjustments to your funding strategies ***
or capital allocation that you are considering?
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Contents of this publication are based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This material
does not purport to contain all of the information and is not to be relied upon as such or used in substitution for the exercise of independent judgement.
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