SEA’s 10-year VC voyage: charting a course for the future of funding

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Hi there,

I’m a film buff. From Citizen Kane to Paddington 2, I’ll watch anything under the sun, no matter how disconnected or far from reality they are. For me, movies always offer something I can take away and keep.

As such, you could say that my interest in the business sphere is an acquired taste, spurred by films like The Big Short and The Wolf of Wall Street. With big players and even bigger personalities, these movies are akin to high-stakes reality shows and drew me deep into the spectacle of the corporate world.

Although these works were based on real incidents, I assumed that they were overly exaggerated.

But as it turns out, art does imitate life – sometimes, at least. This week’s Big Story reflects how true this statement is.

In our premium story, my colleague Tian Wen explores the funding landscape of Southeast Asia’s venture capital firms through charts.

With the digital economy boom, data shows that VCs in the region have become increasingly influential, closing nearly 7x more deals in 2021 than in 2012, with total funding multiplying 180x.

But just like in every good story, there are also winners and losers in this scene. These funds are disproportionately invested into the top three verticals – logistics and transportation, ecommerce, and fintech. With 25.6% of the funding between 2012 to 2021 flowing into logistics, this sector reigns supreme.

Nonetheless, it looks like the underdogs still have a fighting chance for the spotlight. The Covid-19 pandemic has sparked an interest in more niche sectors such as edtech and gaming. Companies in these fields have experienced a 17x and 60x rise in funding, respectively.

Keep in mind, though, that it doesn’t necessarily mean the road ahead will be smooth.

Speaking of edtech, Indonesia’s Zenius laid off 200 employees last week. My colleague Collin elaborates on the development in this week’s Making Waves.

— Shadine

THE BIG STORY
Revisiting a decade of VC funding in SEA