Southeast Asian startup funding down 30% amid tougher scrutiny

Fundraising shrinks to $9.5bn in 2019 as investors focus on profitability

A woman uses the Traveloka app in Jakarta. The Indonesian travel booking startup raised $420 million from investors in 2019. (Photo by Rie Ishii)

AKITO TANAKA, Nikkei senior staff writer, and JUN SUZUKI, Nikkei staff writer

February 27, 2020 23:29 JST

TOKYO/JAKARTA -- The flow of funds to startups in Southeast Asia is slowing as global investors take a harder look at new companies and their prospects for growth.

Investment in startups in the region by venture capitalists and others totaled $9.5 billion in 2019, down about 30% from the previous year, according to data from DealStreetAsia, a Singaporean financial news site. The data includes investment by private equity funds and corporations.