Venture capital firm East Ventures reported a 24% drop in startup investments across Southeast Asia during the first half of 2025.

Total investments reached US$2 billion, down from US$2.6 billion in the second half of 2024, said Managing Partner Melisa Irene on July 25.

The decline is linked to issues like fraud, embezzlement, and falsified financial reports in the startup ecosystem.

Despite the challenges, Irene noted a 7% year-on-year growth in Q1 2025 compared to the same period in 2024, when investments totaled US$1.8 billion.

She highlighted this as a positive sign, even with the semester-over-semester drop.