🧠 Food for thought

Implications, context, and why it matters.

India emerges as the new venture capital powerhouse in Asia-Pacific

• Crane’s focus on India aligns with a major regional shift, as India became the top-performing market in Asia-Pacific during 2024 with double-digit growth in both deal value and count1.
• This represents a significant change from 2018, when China and India together accounted for nearly 75% of total deal value in the region2, but by 2024, China’s share of deal value declined while India surged ahead1.
• The trend continued into 2025, with India experiencing significant increases in VC investment during Q2 2025, while China saw investment fall to $4.7 billion amid geopolitical tensions and market uncertainties3.
• India also became the largest exit market in the region, driven by a surge in IPOs, providing clearer paths to returns for early-stage investors like Crane1.

AI-focused investments drive funding despite broader market decline

• Crane’s emphasis on “AI-native software” reflects investor appetite for artificial intelligence startups, which attracted approximately $12.1 billion globally in fintech AI alone despite overall APAC fintech investment declining from $50 billion to $20 billion over the past year and a half4.
• The AI focus makes strategic sense given Southeast Asia’s AI market is projected to reach $8.92 billion by 2025, with AI expected to contribute significantly to the region’s GDP by 203056.
• Singapore, one of Crane’s three target markets, is expected to experience substantial GDP uplift from AI adoption in Southeast Asia, with the country’s AI market projected to reach $4.64 billion by 202567.
• This sector focus allows funds like Crane to tap into growth areas while broader venture capital activity remains cautious, with investors increasingly focused on sustainable business models and profitability4.