Report: Funding for SEA startups is expected to exceed $14b in 2023

Funding for tech startups in Southeast Asia has grown 50x from US$130 million in 2010 to US$7.7 billion in 2020, according to the SEA Startup Ecosystem 2.0 report from Singapore-based VC firm Golden Gate Ventures.

Ecommerce, fintech, and entertainment and media were the three sectors with the most startups getting big funding (more than US$50 million) in the time span.

Image credit: Golden Gate Ventures

The increase in funding was partially driven by top private equity and later-stage venture funds, including investors from the US.

The report also shows that it took some time for startups in the region to exit. The average number of years for Southeast Asian startups to exit was around 8.3 years, which is similar to their peers in Silicon Valley, according to the report.

Golden Gate Ventures also predicted that by 2023, startup funding in the region will exceed US$14 billion. Total assets under management for investors in the region is also forecast to double from US$134 billion in 2020 to US$310.9 billion in 2030.

Social commerce is said to be one of the rising sectors over the next 10 years, with gross merchandise value set to increase 60x from over US$1.7 billion in 2021 to more than US$108.3 billion in 2030. Medical technology, business to business software-as-a-service (SaaS), and media and entertainment businesses are also expected to attract investor money in the next five to 10 years.

Golden Gate Ventures, which is celebrating its 10th anniversary this month, also predicted that more fintech-focused startups will become unicorns and that more mega mergers like GoTo Group will take place in the region.