The end of Southeast Asia’s unified startup funding story?

The 2025 "Southeast Asia Startup Funding Report" by DealStreetAsia and Kickstart Ventures reveals a growing divergence in the region's venture capital landscape. While Singapore remains the dominant force, attracting the majority of capital and deal volume, other markets are struggling to keep pace. The report shows that Singapore accounted for 61.4% of equity deal volume and 78.1% of total equity funding value in 2025, highlighting a sharp shift from the previous decade's more unified venture funding approach.

Late-stage deals, crucial for growth and exits, were overwhelmingly concentrated in Singapore, with US$2.01 billion in H2 compared to US$400 million in the first half. The concentration of capital in Singapore is attributed to the city-state's stronger capital markets, regulatory environment, and legal structures, which provide investors with greater comfort in a market that has seen significant valuation corrections.

Meanwhile, Vietnam, Indonesia, Malaysia, and the Philippines saw a slowdown in startup activity, with funding falling to US$90 million in Vietnam, US$340 million in Indonesia, US$260 million in Malaysia, and US$33 million in the Philippines in H2 2025. The report underscores the challenges faced by these markets, particularly the lack of exits and limited liquidity, which hampers the ability to achieve liquidity events and return capital to investors.