VCs Forecast Funding Shifts and New Unicorns in Southeast Asia
Venture capitalists in Southeast Asia predict a wave of new unicorns and potential market consolidation in 2019, despite looming concerns over late-stage capital and economic headwinds.
Venture capitalists across Southeast Asia share an optimistic outlook for the region's digital economy as internet access rapidly expands among its 600 million consumers. With millions of new smartphone users coming online each month, investors actively pour capital into tech startups to capture a market projected to reach $240 billion by 2025.
Predictions for 2019 point to the emergence of two to three new regional unicorns after a quiet previous year, alongside long-awaited consolidation in the e-commerce sector. Many startups opportunistically rush to raise funds in the first half of the year to capitalize on favorable market conditions before a potential economic downturn.
However, late-stage funding faces significant challenges due to a lack of major liquidity events and cautious corporate buyers. While capital returning from US IPOs benefits growth markets like Southeast Asia, larger unprofitable market leaders struggle to secure late-stage capital as investors grow more selective.