Southeast Asia’s startup funding landscape experienced a significant downturn in the first half of 2025, with equity investments dropping 20.7% year-on-year to $1.85 billion across 229 deals, marking the weakest period in over six years. Despite this decline, the Southeast Asia Startup Funding Report: H1 2025, released by DealStreetAsia and Kickstart Ventures, highlights areas of resilience, including a remarkable 169% increase in funding in Vietnam and the emergence of new unicorns in Singapore and Malaysia.
The report underscores the shifting dynamics within the region, with Singapore maintaining its status as the primary fundraising hub, despite a 13% drop in deals compared to the latter half of 2024. Meanwhile, Indonesia, traditionally a growth leader, saw a dramatic 67% fall in investments to $78.5 million, placing it behind the Philippines, which raised $86.4 million. Vietnam emerged as a standout, with funding surging to $275 million, whilst Malaysia’s proceeds doubled to $196 million.
Investor caution was most pronounced at the early stage, with transactions falling to a six-year low of 219. However, late-stage activity rebounded, generating $756 million, a 70% increase, as investors concentrated on companies with proven resilience and scale. The fintech sector led with 57 transactions worth $631 million, although both volume and value were at their weakest in over six years.
The report suggests that whilst the region is undergoing a reset, the emergence of new unicorns and the rebound in late-stage deals indicate a foundation for future growth.
