Asia startup funding shifts to early stage deals amid market turbulence

Falling valuations of listed peers puts pressure on late-stage companies

After last year's major tech listings ran into headwinds, investors are less enthusiastic about pouring money into late-stage startups. (Source photo by AP)

WATARU SUZUKI, Nikkei staff writer

April 13, 2022 12:33 JST

TOKYO -- Startup funding in Asia is shifting to early stage deals as a sharp decline in listed tech stocks keeps investors away from companies close to an initial public offering.

Investors poured $36.3 billion into Asian startups in the first three months of 2022, down 34% from a record $54.7 billion in the October-December quarter of 2021, according to data provider CB Insights. The figure was flat compared to the $36.7 billion in the first quarter of 2021.