Asia venture activity continues to slide in Q1'23, with funding and deals both seeing double-digit declines.
In Q1’23, Asia-based companies raised $12.5B across 2,399 deals — down 27% and 18% quarter-over-quarter, respectively.
This marked a fifth consecutive quarter of decline for funding and the fourth straight quarterly drop for deals.
Highlights across the Asia venture ecosystem in Q1’23 include:
- The funding decline was spread evenly across major hubs like China (-28%), India (-26%), and Israel (-27%). Funding to Japan and Singapore, on the other hand, remained stable QoQ.
- Q1’23 saw a reshuffling of the region’s top 3 investors compared to Q4’22: Sequoia Capital China led Q1’23 with deals to 24 companies, followed by Japan’s Global Brain and SMBC Venture Capital, backing 21 companies each.
- Asia’s M&A market livened up in Q1’23. There were 246 M&A deals, a 46% jump from the previous quarter.
- IPOs fell by 58% QoQ to 56. Despite the sharp drop, Asia IPOs still made up 65% of the global total, and China-based companies accounted for all top 10 global IPOs by valuation.
CB Insights clients can see all the latest investment data for Asia by signing in and downloading the full State of Venture Q1’23 Report: Asia using the sidebar. Dig into investment trends from around the world in our global State of Venture Q1’23 Report.
