Beijing’s regulatory crackdown on tech companies has prompted startup investors to look for new markets in Southeast Asia including India. Wataru Suzuki, writing in Nikkei Asia said that venture capital (VC) firms that back startups in Southeast Asia and India are raising record sums for new funds.
Southeast Asia- and India-focused VC funds have raised $3.1 billion so far in 2022, already nearing the $3.5 billion they raised in all of last year, according to data from research company Preqin. In comparison, fundraising by China-focused VCs fell sharply from $27.2 billion in 2021 to just $2.1 billion, said Wataru.
“Fifty per cent of the investors we spoke to are trying to diversify out of China,” said Amit Anand, co-founder of Singapore-based Jungle Ventures, which recently raised $600 million for new funds to invest in Southeast Asian and Indian startups. Jungle Ventures plans to make “concentrated” investments in 15 to 18 companies with an even split between the two regions, Anand said.
Earlier this month, Singapore-based East Ventures said it raised $550 million to invest in startups in Southeast Asia, bringing assets under management to more than $1 billion. In April, India’s Elevation Capital said it raised its largest-ever fund with $670 million, reported Nikkei Asia.