Surviving the Valley of Death in Southeast Asia

After a 13-year bull run culminating in a record-breaking funding year in 2021, investors have turned more cautious with their investment strategies.

While exponential growth was what most investors previously looked for in startups, the current horizon of rising interest rates and declining market liquidity has caused them to rethink the funding of profitless futures indefinitely. As investors continue to adapt their funding strategies, industry observers expect further pullbacks in their support of startup funding, valuations, and exits.

Startups that are unable to understand their market needs and how their business can scale in consideration of these needs typically fall into the Valley of Death and do not prosper after the seed and Series A funding stages. However, once startups successfully secure their Series B funding, their chances of making a successful exit increase significantly.

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