TLDR:
**Tech funding in Southeast Asia has slowed down significantly in the first half of 2024, with only $1.6 billion raised compared to $4.5 billion in the same period last year.**
**Fintech has been greatly impacted by this downturn, with late-stage investments declining by 69% and seed-stage funding falling by 27%.**
Southeast Asia’s tech sector has experienced a pronounced slowdown in funding during the first half of 2024, securing only $1.6 billion—a sharp 65% decline from the $4.5 billion raised in the same period last year. Fintech, previously a dominant force in regional tech growth, has not been immune to this downturn as well. In the first half of 2024, fintech startups raised $851 million, marking a 20% decline from the previous year. Late-stage funding plummeted by 69%, indicating broader challenges in securing funding. Additionally, a significant decrease in seed-stage funding by 27% was observed.
The report ranks Southeast Asia ninth globally in tech startup funding for the first half of 2024, portraying a fall in investor confidence or a shift in investment priorities globally. Singapore continues to lead the region in funding, raising $1.1 billion in the same period, surpassing Jakarta and Bangkok. Despite the challenging conditions, some notable funding rounds were recorded, with individual companies like ANEXT Bank and GuildFi securing significant amounts.
Overall, this funding contraction reflects a broader recalibration within Southeast Asia’s tech sector as it adapts to evolving market conditions and investor sentiment. While early-stage investments showed some resilience, the cautious tone set for the future suggests a need for a strategic approach to regional tech development, especially in sectors like Fintech that have seen robust growth rates in the past.
