A VC perspective on building resilient startups in Southeast Asia

Paulo Joquino is senior content strategist at Insignia Ventures Partners.

Amid global economic headwinds, Southeast Asia continues to present a unique blend of challenges and opportunities for venture-backed startups and venture capital.

This article dives into these challenges and opportunities – from shifts in capital and talent flows, the changing dynamics and demands of fundraising, to innovations shaping companies of the future.

As Southeast Asia becomes an increasingly attractive hub for entrepreneurship and investment, understanding these dynamics is crucial for building resilient companies.

Ripe opportunities

A market correction in public companies has led to near-term venture capital fundraising challenges.
The valuations of top-tier startups are now aligning more closely with their publicly traded counterparts in the US. Median valuations for series B and series C startups in Southeast Asia have cooled since the hype of 2021.

Graphic: Insignia Ventures Partners

This trend has placed venture-backed companies at a critical juncture in fundraising.

Companies unable to extend or raise their runway toward 36 months or more or reach profitability are forced to take severe measures to stay afloat. Amid this fundraising demand are more stringent expectations from investors that have led to due diligence red flags being raised after years of being unchecked.

In spite of (and to some extent, because of) the market correction and macroeconomic headwinds, the ASEAN opportunity remains compelling for investors globally.

Startup funding in the ASEAN region has seen its ups and downs, but the region has only just experienced its first “bear market” cycle in these past few months. Global investors – in some cases, precisely to diversify risk – continue to see Southeast Asia as a relatively greener spot in the world for capital allocation.

Early-stage (

Graphic: Insignia Ventures Partners

Moreover, the fundamentals continue to drive the ASEAN digital economy forward, even during a bear market.

What this means for startups