Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - ASEAN

ASEAN

The country in Association of Southeast Asian Nations (ASEAN) is expected to see Total Capital Raised in the Venture Capital market market reaching US$13.37bn in 2025.
In the country, Early Stage is set to dominate the market with a projected market volume of US$7.18bn in 2025.
When compared globally, the United States is anticipated to generate the most Capital Raised, amounting to US$140,500.0m in 2025.
In ASEAN, the Venture Capital market is rapidly expanding, with a notable focus on technology startups driving innovation and growth in the region.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in ASEAN has been experiencing significant growth and development in recent years. This can be attributed to several factors such as the increasing demand for funding from startups, the rise of technology and innovation, and the favorable business environment in the region.

Customer preferences in the ASEAN region have shifted towards investing in startups and innovative businesses. This is driven by the potential for high returns on investment and the desire to support local entrepreneurs. Startups in sectors such as technology, e-commerce, and fintech have been particularly attractive to investors due to their potential for rapid growth and scalability.

Trends in the Venture Capital market in ASEAN have been shaped by the increasing availability of funding options. Traditional sources of funding such as bank loans and government grants are often insufficient for startups to scale their operations. As a result, startups have turned to Venture Capital firms for funding, which has led to an increase in the number of deals and investments in the region.

Local special circumstances also play a role in the development of the Venture Capital market in ASEAN. The region is home to a young and dynamic population, which has fueled the growth of startups and innovation. Additionally, ASEAN countries have implemented policies and initiatives to support entrepreneurship and attract foreign investments.

These factors have created a favorable business environment for startups and Venture Capital firms. Underlying macroeconomic factors have also contributed to the growth of the Venture Capital market in ASEAN. The region has experienced robust economic growth in recent years, which has created a larger pool of potential investors.

Additionally, the increasing integration of ASEAN economies has facilitated cross-border investments and collaborations, further driving the growth of the Venture Capital market. In conclusion, the Venture Capital market in ASEAN is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for funding from startups, the rise of technology and innovation, and the favorable business environment in the region have all contributed to the growth of the Venture Capital market.

As the ASEAN region continues to attract investments and support entrepreneurship, the Venture Capital market is expected to continue its upward trajectory.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.