CHART: A Look at the Asian Startup Funding Landscape in Q2 2024

• Asia saw its worst quarter for venture funding since 2015, with startups raising only €14.6 billion in Q2.
• Venture funding in Asia also dropped 24% from Q1 and 32% year over year.
• The region’s venture funding decline reflects broader economic and regulatory challenges, particularly in China.

Despite a brief global resurgence in venture funding, Asia appears to be lagging.

The region experienced its worst quarter for venture funding since the end of 2015, with startups raising only €14.6 billion in Q2—a sharp 24% decline from Q1 and a 32% drop year over year. This sharp downturn is alarming, reflecting broader hesitations among investors.

One of the most telling signs of this decline is the reduction in deal volume, with only 1,511 funding deals announced in Q2 down 15% from Q1 and 27% from the same period last year.

Why the downturn?

According to the report, Asia’s venture market has been heavily impacted by economic uncertainties and trade tensions, particularly involving China. Regulatory challenges around venture and IPOs in China further stifled investment. Even the AI boom, which has driven significant investments in other regions, failed to significantly impact Asia. AI-related startups in Asia raised only €2.5 billion, a fraction of what North American startups pulled in during the same period.