VCs on the ropes in South-east Asia. Here’s how they can bounce back

THE global venture capital industry is at a crossroads. Data from Pitchbook shows that fundraising this year is expected to be down 48 per cent from the levels seen in 2021.

The picture in Southeast Asia is different but no less troubling. While funds in the region have raised more than US$14 billion this year so far compared to US$14.8 billion for all of 2023, the VC sector is still struggling to provide returns to investors.

As another Pitchbook report noted, “nearly 87 per cent of the exit value since 2015 has been generated by six exits of over US$1 billion” and cash returns for investors remain “elusive.”