SEA startup funding ends decade on a high, but warning signs emerge

Southeast Asia is a story in two parts. The region’s startup funding scene was quiet in the first half of the decade.

Then an explosion followed.

Cue the first half of 2019, where valuations soared, seemingly defying logic. Then, WeWork happened.

Despite some turbulence, one thing has remained evident – Southeast Asia’s growth.

While there might be some bumps, the region’s favorable demographics, rising incomes, and consistent growth could attract investors well into the next decade.

Using Tech in Asia’s data set of startup investments, let’s dive deeper.

Funding in Southeast Asia leapfrogged in 2017, and the region has not looked back since.

Unsurprisingly, the hose’s pointing at what I’ll call the “Big Five”: Grab, Sea, Lazada, Tokopedia, and Gojek.

Only Sea and Tokopedia existed before 2010, showing how young the region’s internet companies are. But something happened in 2016: the Big Five began to have an outsized impact on the funding scene.

This is not a bad thing, as younger startups are getting a larger share of the total pie.

Year	Big 5 funding as % of total

2019’s roller-coaster ride

Areas of concern

What’s in store for 2020?

Usual ebb and flow