TLDR:
- In 2023, the Asia-Pacific (APAC) region saw a significant decline in the number of venture capital (VC) deals compared to the previous year.
- Total VC deals with disclosed funding rounds decreased by 27.9% year-on-year, with early-stage funding rounds declining by 26.9% and growth, expansion, and late-stage funding rounds declining by 30.8%.
In 2023, the Asia-Pacific (APAC) region experienced a decrease in the number of venture capital (VC) deals with disclosed funding rounds, aligning with global trends. GlobalData’s analysis revealed that a total of 4,674 VC deals were announced during the year, marking a 27.9% decline from the previous year’s 6,483 deals. This decrease was evident across all funding rounds, with early-stage funding rounds (Seed and Series A) declining by 26.9% and growth, expansion, and late-stage rounds (Series B onwards) declining by 30.8%.
Aurojyoti Bose, Lead Analyst at GlobalData, noted that the higher decline in growth, expansion, and late-stage funding rounds compared to early-stage rounds in the APAC region mirrors a global trend. Early-stage funding rounds accounted for 75.2% of the total VC deals announced in APAC in 2023, while growth, expansion, and late-stage rounds made up 24.8%.
Bose highlighted that the decline in late-stage funding rounds signals a cautious investor sentiment in the region. However, he also pointed out that this presents an opportunity for early-stage startups to showcase their agility and disruptive potential in the industry. The changing VC landscape in APAC reflects both challenges and opportunities for startups seeking funding and investors navigating the market.
