Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Eastern Asia

Eastern Asia

The country in Eastern Asia is expected to reach a Total Capital Raised of US$74.43bn in the Venture Capital market market by 2024.
In this country, Later Stage is set to lead the market with a projected market volume of US$49.59bn in 2024.
When compared globally, the United States is forecasted to generate the highest Capital Raised amount of US$136,600.0m in 2024.
In South Korea, the Venture Capital market is experiencing a surge in funding for tech startups, driven by innovative ideas and strong government support.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Venture Capital market in Eastern Asia has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Entrepreneurs and startups in Eastern Asia are increasingly turning to venture capital as a source of funding due to the advantages it offers. Venture capital provides not only financial support, but also expertise, mentorship, and access to valuable networks. This is particularly appealing to young and innovative companies that are looking to scale quickly and disrupt traditional industries. Additionally, venture capital funding allows entrepreneurs to retain control of their businesses and maintain their vision, while still benefiting from the expertise and resources of their investors.

Trends in the market: One of the major trends in the Venture Capital market in Eastern Asia is the rise of technology-focused investments. Countries like China, Japan, and South Korea have seen a surge in investments in sectors such as e-commerce, fintech, artificial intelligence, and biotechnology. This trend is driven by the region's strong technological capabilities, as well as the growing consumer demand for innovative products and services. As a result, venture capital funds are increasingly targeting startups in these high-growth sectors. Another trend in the market is the increasing involvement of corporate venture capital. Large corporations in Eastern Asia are recognizing the importance of innovation and are setting up their own venture capital arms to invest in startups. This allows them to stay ahead of the competition, gain access to new technologies and business models, and tap into the entrepreneurial spirit of the startup ecosystem. Corporate venture capital also provides startups with strategic partnerships and potential customers, which can significantly accelerate their growth.

Local special circumstances: Each country in Eastern Asia has its own unique characteristics and circumstances that influence the development of the venture capital market. For example, China has a large domestic market, a thriving tech sector, and a government that supports innovation and entrepreneurship. These factors have contributed to the rapid growth of the venture capital market in China, making it one of the largest and most active in the region. On the other hand, Japan has a more conservative business culture and a focus on traditional industries, which has historically made it more challenging for startups to raise venture capital. However, recent government initiatives and a shift towards a more entrepreneurial mindset are starting to change this landscape.

Underlying macroeconomic factors: The Venture Capital market in Eastern Asia is also influenced by macroeconomic factors such as GDP growth, interest rates, and government policies. A strong and stable economy provides a favorable environment for venture capital investments, as it indicates potential market demand and opportunities for growth. Low interest rates encourage risk-taking and make it cheaper for startups to borrow money, while favorable government policies and regulations can create a supportive ecosystem for entrepreneurship and innovation. Eastern Asian countries have been actively promoting these factors to attract both domestic and foreign venture capital investments, leading to the growth of the market in the region. In conclusion, the Venture Capital market in Eastern Asia is experiencing significant growth due to customer preferences for venture capital funding, the rise of technology-focused investments, the increasing involvement of corporate venture capital, local special circumstances, and underlying macroeconomic factors. This trend is expected to continue as the region's startup ecosystem continues to mature and attract more capital and talent.

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.