Venture Capital (VC) investments in Southeast Asia have seen a moderate slowdown in 2025, with over 200 VCs participating in 110 funding rounds, raising a total of $1.4b across more than 100 startups, according to a report by Tracxn Technologies. This marks a decrease from the same period in 2024, which saw 400 VCs involved in 260 rounds, raising $1.9b.
The report highlights Iterative as the most active VC in 2025, participating in 14 funding rounds, surpassing Antler, which led in 2024. Seed and Early Stage funding rounds experienced reduced participation, indicating a cautious investor approach. In contrast, Late Stage rounds raised $670m from seven deals, driven by three significant rounds, suggesting a focus on larger investments.
FinTech, Enterprise Applications, and Enterprise Infrastructure emerged as the top funded sectors, with Singapore, Vietnam, and Indonesia leading in terms of country funding. Singapore alone accounted for $1.1b, maintaining its dominance in the region’s VC activity.
The report also notes a shift in the VC landscape, with Iterative investing in promising startups like Blitz Electric Mobility and SeedFlex, focusing on markets with growth potential. SEEDS Capital, another active VC, concentrated on Early Stage startups in Singapore, aiming for global expansion.
Overall, the report underscores a strategic shift towards larger, more concentrated investments in Southeast Asia’s tech ecosystem, with Singapore at the forefront of this trend.
