These investors bank on SEA to fuel returns

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Hello reader,

“Focus, focus, focus. If you start having too many use cases, it defeats the purpose,” says Tech in Asia’s founder and CEO, Willis Wee, in this insightful piece that provides tips on building a minimum viable product (MVP).

Perhaps, the VCs, state-backed investors, and corporate investment arms in today’s feature piece have ripped a page or two from his MVP-building playbook. We shine a light on their almost singular focus in fueling Southeast Asia’s startup ecosystem over the last two years.

For the longest time, investors have flocked to China as the go-to investment destination in Asia. The world’s second-largest economy has grown at a startling pace for decades but has hit a stumbling block recently as the market matures amid worsening macroeconomic conditions and a stringent regulatory environment.

However, investors haven’t had to venture too far to identify other emerging markets where they can generate healthy returns.

Southeast Asian nations are expected to undergo a wave of digitalization with the region’s digital economy expected to reach US$200 billion in gross merchandise value this year and VCs are looking to make the most of this boom.

Today we look at:

• The most active investors in Southeast Asia’s startups
• The latest financials of Indonesia-based culinary startup Hangry
• Other newsy highlights such as the downsizing efforts of Indonesian firms GoTo and Ruangguru as well as Australian e-grocer Voly ceasing operations

Premium summary

Funding SEA

Image credit: Timmy Loen

Southeast Asian startups appear to be turning VCs’ heads far and wide, with 77 of the top 100 active investors in the region hitting double digits in terms of the number of deals they’ve done over the past two years.

While funds are drying up, in line with a bleak financial environment, resilient investor interest is still fueling Southeast Asia’s startup ecosystem.

• Top by a distance: Tech in Asia data crowns East Ventures as the most active backer in Southeast Asia’s startup, as the VC has joined more than 100 funding rounds in the region over the last two years. The Indonesia-based VC has been a part of twice as many deals as second-placed local peer AC Ventures, which was involved in 52 investment rounds.
• Going local: Encouragingly, most active backers of Southeast Asia’s startup are based in the region themselves. Only two out of the top ten are from the US, while the rest of the big hitters are headquartered in the financial hubs of Singapore and Indonesia, the region’s largest economy.
• The odd one out: Germany’s Global Founders Capital is the sole European representative among Southeast Asian startups’ top 25 active investors, with most of the VC firms largely coming from Singapore, Indonesia, and the US.

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