Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.
Hello reader,
Recently, I was engaged in an informative discussion on the shifting dynamics of the funding landscape in Asia with a founder of a Y Combinator-backed software-as-a-service startup and a seasoned investor in real estate and stocks.
However, there was a momentary (and somewhat funny) lull when the founder mentioned his startup had secured funding at a valuation that was over 60x the firm’s gross sales last year.
The immediate reaction of the equity investor was a sight to behold: His deadpan blinks oddly reminded me of outdated hardware attempting to upload and process a large file. Perhaps his reaction sums up the varying risk appetites across different pockets of the investment world.
More pertinently though, the founder did also mention that his company would be lucky to bag funding at a valuation anywhere close to 10x its gross sales this year – highlighting the severe impact of the macroeconomic whirlwind that has knocked the stuffing out of global startup investors.
Even Y Combinator, one of the world’s leading startup enablers, has felt the pinch. Today’s featured piece makes sense of the firm’s diminishing presence in Southeast Asia and India as well as how the recent artificial intelligence frenzy has temporarily dampened investment interest in the region.
The premium story also unearths the three key reasons behind the California-headquartered accelerator’s decision to reduce the startups it funded from its Winter 2022 cohort to its Summer 2022 batch.
Today we look at:
- Why Y Combinator is reducing its exposure in SEA and India
- How Sea Group has reversed its digibank fortunes in Indonesia
- Other newsy highlights such as Carousell appointing a new CFO and an Indonesian multibrand cloud kitchen operator securing US$13.7 million in its series A round
— Shravanth
P.S.: If you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.
Premium summary
Fall back for now
Image credit: Timmy Loen
Making headway
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
