Southeast Asia’s technology ecosystem raised $2 billion in total funding in the first half of 2025, reflecting both a short-term slowdown and signs of long-term recovery, according to data from Tracxn.
The figure marks a 24% decline from the $2.6 billion raised in the second half of 2024, but a 7% increase compared to $1.8 billion in the first half of 2024.
The funding performance highlights shifting momentum across funding stages, with late-stage investments driving overall growth even as early-stage and seed capital declined sharply.
Seed-stage funding fell to $87 million, down 51% from H2 2024 and 68% year-on-year. Early-stage investments dropped more steeply, totaling $464 million—down 74% from the previous half and 53% from H1 2024.
In contrast, late-stage funding rose to $1.4 billion, a 140% increase from H2 2024 and nearly 2.5 times higher than the $562 million recorded in the same period last year.
Tracxn said the sector’s resilience, despite market volatility, reflects increasing maturity and investor confidence in established growth-stage companies.
The surge in late-stage activity also coincided with five $100 million-plus funding rounds, including Digital Edge ($640 million), Supabase ($200 million), and Thunes ($150 million).
Sector-wise, enterprise infrastructure led with $859 million in funding, up nearly 38-fold from a year earlier, but down 35% from H2 2024.
FinTech followed with $775 million, a 31% increase from the previous half, though still 26% lower year-on-year. Enterprise applications secured $545 million, down 66% sequentially but up 33% compared to H1 2024.
IPO activity also picked up, with notable listings from Oasis Home, Mirxes, Antalpha, and Concorde Security. The region saw one unicorn emerge in H1 2025, Sygnum, a digital asset banking firm, mirroring unicorn creation levels from a year earlier.
Meanwhile, the number of acquisitions dropped to 28, down from 38 in H2 2024 and 37 in H1 2024. The largest deal was NinjaOne’s $270 million acquisition of Dropsuite, followed by KFin Technologies’ $34.7 million acquisition of ASCENT.
Singapore continued to dominate the regional tech funding landscape, accounting for 92% of total capital raised.
Venture firms East Ventures, 500 Global, and Wavemaker Partners were the top overall investors, while Iterative, SEEDS Capital, and DST Global Partners led in seed, early, and late-stage funding respectively.
The first half of 2025 underscores a structural shift in investor focus toward mature startups with clear monetization paths, as macroeconomic caution curbs early-stage bets.
The rebound in late-stage capital, IPO activity, and mega-rounds signals a flight to quality and scalability.
Singapore’s outsize role cements its position as Southeast Asia’s tech funding nucleus, though capital concentration may limit ecosystem growth elsewhere without targeted policy or investor incentives.