SEA startup funding jumps to US$7.25B, but most founders are still waiting

Southeast Asia's startup funding market has seen a resurgence, with a total of US$7.25 billion raised across 217 deals in the first half of 2026, according to the Southeast Asia Startup Funding Report H1 2026. This represents a significant rebound from the previous year, but the distribution of funding remains uneven. While capital is flowing into strategic sectors such as AI and cloud computing, only a small number of companies are benefiting from the influx, with the top five deals accounting for 75.5% of equity funding.

The growth in early-stage funding remains sluggish, with a 11% decrease year-on-year and the number of deals falling to 195 in H1 2026, compared to 353 in H1 2024. Despite this, the amount of capital directed towards early-stage companies has risen by 56.4%. Singapore continues to lead the region in funding, with Singapore-based companies raising US$6.7 billion across 145 deals.

However, the funding gap between Singapore and other Southeast Asian markets is widening, particularly in Indonesia, where only 17 deals and US$104 million in funding were recorded. This suggests a significant lack of growth capital in a market that once produced several of the region's largest venture-backed companies.