Southeast Asia's venture market closed 2025 with a six-year low in deal count, despite some recovery in funding value driven by large rounds rather than broad-based growth. This downturn is exacerbated by illiquidity and structural issues unique to the region, making exits scarce and hindering future investments.
This situation underscores the need for startups to adopt a global strategy from day one, leveraging Southeast Asia's engineering talent while targeting markets with higher customer willingness to pay, such as the US and Europe.
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