However, not all Asian countries experienced growth. India's venture market, the second-largest in Asia, saw a 34% drop in funding, from $3.8 billion in Q2 to $2.5 billion in Q3. South Korea experienced the largest percentage decline in the region, with venture funding dipping 40% to less than $1 billion. The diverse region's numbers could potentially flip by the next quarter, with investors showing interest in AI, semiconductors, and energy storage.
Key takeaways:
- Venture funding in Asia fell 8% from Q3 last year to $22.3 billion, but this is an 8% increase from the $20.6 billion in funding in the second quarter of 2023.
- China-based startups raised $14.1 billion in the third quarter, a 20% increase from the $11.8 billion raised in Q2, despite geopolitical tensions and US investment bans in certain sectors.
- Israeli startups saw a 56% increase in venture funding from last quarter, from $900 million to $1.4 billion, with significant contributions from cybersecurity and AI sectors.
- India and South Korea saw significant declines in venture funding, with India experiencing a 34% drop and South Korea a 40% dip.