TIA Monthly Report: Late-stage funding surges despite Covid-19

ABOUT

Late-stage funding is continuing its strong showing despite the global pandemic. Tech giants with strong cash reserves view this as the perfect time for dealmaking. In India, for example, Facebook has snapped up a US$5.7 billion stake in Reliance Jio.

Activity in China has also picked up again, with Didi’s bike-sharing spinoff snapping up US$1 billion.

WHY IT MATTERS

The contrast between late-stage and early-stage funding cannot be starker. Seed funding in April 2020 is just 10% of the previous year’s tally.

Layoffs have been commonplace among startups, though we’re expecting those at the top of the class to continue thriving. Ventures that can expertly tap into permanent behavioral changes brought about by the pandemic will also do well, though this is much easier said than done.

With the pandemic likely to last beyond this year due to the second wave of infections, we expect startup funding to remain slow for an extended period of time.

SOURCE

Data: Tech in Asia
Infographics: Susi Susanti
Analysis: Terence Lee. Editing: September Grace Mahino