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Hi readers,
For me, the term “funding winter” doesn’t quite conjure an image of scarcity. Winter is associated with snow, which is essentially solidified water – it doesn’t really indicate an absence or shortage.
In contrast, ”funding desert” paints an arid picture: cracked land singed by the scorching sun. Just looking at pictures of it makes you feel so parched that you need a glass of water to quench the thirst.
I have always been fascinated to know who comes up with these business-related phrases. I imagine someone like George Costanza – the short, bald, and bespectacled character from the ‘90s hit show Seinfeld becoming ecstatic and animated after coining a new term.
Another phrase liberally tossed into conversations by investors these days is “dry powder” which was originally a military term from the 17th century. It referred to the dry gunpowder that was kept on hand for a functioning gun or canon.
In a similar way, we found out that VC funds have ample reserves of dry power, ready to reignite the startup ecosystem in Southeast Asia and India.
The data I collected shows that VC funds focused on these two markets have seen a sharp rise in fund commitments in 2022. After just about a month and half into 2023, VCs had already raised nearly US$3.8 billion – over one third of what they raised a year earlier.
At present, these funds are only trickling into the ecosystem, they start to stream in during the upswing. A large number of VC funds are already zeroing in on Southeast Asia and India.
Apart from mentioning the amounts raised, the data also includes details about the managing partners in charge of investment activities. In addition, we analyzed where investors plan to deploy theirdry powder, and fintech emerged as one of the most sought-after sectors.
If you run a startup or know someone who does, you can find active funds on our regularly updated list. If you’re from a VC firm and can’t find your recent fund on this list, do reach out to me: collin@techinasia.com.
— Collin Furtado, journalist at Tech in Asia
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