China Leads Asia’s Venture Downturn — But Other Countries Didn’t Help
Jan 27, 2025 - news.crunchbase.com
The Asia funding market experienced a significant decline last year, reaching $65.8 billion, a low not seen since 2014. This downturn was largely driven by China's venture market, which saw a 32% drop in funding from 2023, totaling $33.2 billion. Despite this, China still accounted for four of the six $1 billion-plus funding rounds in Asia. The country's economic challenges, including a deflationary spiral and geopolitical tensions, have contributed to the region's venture market struggles. Other countries like Singapore and Israel also saw declines, with Singapore's funding dropping 39% and Israel's by 26% compared to the previous year.
Conversely, India and Japan bucked the trend, with India seeing a 5% increase in venture funding to $13.2 billion, and Japan experiencing a 62% rise to $4.2 billion. However, these gains were insufficient to offset the overall decline driven by China's downturn. The region's venture market is unlikely to rebound significantly until China's economy improves.
Key takeaways:
Asia's venture funding market hit a low of $65.8 billion in 2024, matching the low from 2014, with China being a significant contributor to the decline.
China's venture funding fell 32% from 2023, with only $33.2 billion invested, despite some large funding rounds in AI and electric vehicle startups.
Singapore and Israel also experienced significant declines in venture funding, with Singapore seeing a 39% drop and Israel a 26% decrease compared to 2023.
India and Japan were exceptions, with India seeing a 5% increase in venture funding and Japan experiencing a 62% boost, although these increases couldn't offset China's downturn.
