TIA Monthly Report: Strong March masks weakness in the early funding stages

ABOUT

March has been a pretty strong month for Asian tech funding, with only a 10% decline from the year before – despite the Covid-19 pandemic.

This is thanks in large part to hefty late-stage deal activities like Gojek’s US$1.2 billion raise, which was in the works since last year.

Further alleviating the strain, Chinese tech giant Tencent made nine deals this month, matching its pace in 2019.

Early-stage activity from seed to series C remains soft, however, echoing sentiments that the outbreak has spooked venture capital firms.

WHY IT MATTERS

Despite the economy being in the doldrums, there are still plenty of buyers hunting for a good deal, especially in the late stages.

While cash-poor startups may be struggling, wealthier tech giants still have the firepower to make investments in a downturn. They certainly have the leverage to demand lower valuations and terms that favor them.

Expect M&A activity to pick up in the coming months.

SOURCE

Data: Tech in Asia
Infographics: Susi Susanti
Analysis: Terence Lee. Editing: Jaclyn Teng