In line with the global trends, the Asia-Pacific (APAC) region saw a notable decline in the number of venture capital (VC) deals with disclosed funding rounds announced in 2023 compared to the previous year. VC deal volume decreased across all funding rounds, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that a total of 4,674 VC deals with disclosed funding rounds were announced during 2023, which is a year-on-year (YoY) decline of 27.9% compared to the 6,483 VC deals announced during the previous year.
The number of early-stage VC funding rounds (Seed and Series A funding rounds) saw a YoY decline of 26.9% from 4,811 to 3,517. Similarly, the number of growth, expansion and late-stage funding rounds (Series B onwards) declined by 30.8% from 1,672 in 2022 to 1,157 in 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, says: “This is another similarity with the global trend wherein APAC region experiencing relatively higher decline in volume for growth, expansion and late-stage funding rounds compared to the early-stage funding rounds.”
Early-stage funding rounds accounted for 75.2% of the total number of VC deals with disclosed funding rounds announced in the APAC region during 2023. Meanwhile, the share of growth, expansion and late-stage funding rounds stood at 24.8% during the year.
Bose concludes: “In an ever-changing VC landscape, the decline in late-stage funding rounds across APAC reflects a cautious investor sentiment. However, it also presents an opportunity for early-stage startups to shine, demonstrating their agility and potential to disrupt industries.”
