ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Asian startups face cash crunch as coronavirus saps funding

Online education and health care startups in focus as VC fundraising hits 7-year low

Cash is fast becoming a precious commodity for startups in Asia. (Source photos by Reuters and Getty Images)

TOKYO/HONG KONG -- Saving cash has become the new mantra for startups in Asia as capital quickly dries up in the region.

Funds raised by Asia-focused venture capital firms fell to a seven-year low of $2.2 billion in the first quarter, according to U.K. data provider Preqin. Investors are now urging startups to save enough money to support their business for at least a year in anticipation of a prolonged economic downturn brought on by the coronavirus pandemic.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more