Asia-Pacific venture capital set for softer returns, but could outshine other regions
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VENTURE capital (VC) players in Asia-Pacific are poised to see softer returns in the near-to-mid term, in contrast with the tech boom from 2018 to 2021, according to a new forecast by private market intelligence provider Preqin.
However, the region is still a bright spot globally, given its favourable demographics and growth expectations, the firm said in a report released on Wednesday (Oct 5).
Preqin forecasts that Asia-Pacific VC funds will post annualised returns of 16 per cent from 2021 to 2027. This is lower than the 23.8 per cent annualised returns from 2018 to 2021, and relatively flat from the 15.9 per cent performance from 2015 to 2021.
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