The Tech in Asia research team tracked 380 deals inked in Southeast Asia in 2015 – this is what you should know about them
Startups in Southeast Asia struck record-high deals with investors last year, with total funding in the region hitting $1.61 billion. That’s a 43 percent jump from the 2014 figure of $1.123 billion, according to the Tech in Asia database. It’s important to note that a lot of startups that raised funding didn’t disclose the amounts, so the tally could have been bigger.
The Tech in Asia research team tracked 380 deals inked in Southeast Asia in 2015, higher than the previous year’s 313. Look at how the scene grew over the past five years.
Seed funding grew over 12 percent to $57.286 million from $50.885 million in 2014.
What’s more encouraging is that startups were able to secure more Series A rounds, which means they were able to survive closer scrutiny by VCs and cross over to the crucial growth stage. Series A funding surged 60 percent to $228.974 million in 2015 from $143.088 million the previous year.
Looking at all funding stages, the results were mixed, however. Total Series B and D funding fell in 2015 from 2014, but Series C and E went up. Nevertheless, early-stage funding (Series A and B) still grew more than 11 percent to $362.724 million last year from $325.388 million the year prior.
In terms of sectors, e-commerce led the pack as it generated the most funding in Southeast Asia at $603.391 million. Back in 2014, e-commerce startups obtained $556.443 million in fresh capital from investors.
That’s no surprise given rosy projections for online shopping growth in the region. E-commerce in Southeast Asia is set to swell to $35 billion by 2020 from only about $1.1 billion in 2014, according to projections from financial services firm UBS. Startups and investors alike don’t want to miss out.
Other sectors that were most attractive to investors last year include consumer internet, logistics, real estate, and enterprise solutions.
Thanks to Hana Nguyen of our research team for compiling the data.
Editing by Steven Millward and Kylee McIntyre
This post was originally published on Tech in Asia.