Venture capital firm East Ventures acknowledged a decline in funding trends for startups across Southeast Asia during the first half of 2025.

The data was presented during the “East Ventures Open Book” event held at the East Ventures office in Sequis Tower, Jakarta, on Friday, July 25, 2025.

According to the Geo Semi Annual Report: SEA Tech – H1 2025 by Tracxn, funding dropped 24%, falling to US$2 billion in June 2025 from US$2.6 billion in December 2024.

Funding Falls 24% to $2 Billion in Six Months

“We see ups and downs from 2023 to 2025,” said East Ventures Partner Melisa Irene.

Based on the presentation slide shown at the event, the report highlighted a clear downward trend in funding during the first half of 2025.

The report was used by East Ventures to illustrate the changing pace of capital flows to startups across the region.

Financial Misconduct Drives Investor Hesitation

East Ventures noted that the drop in funding was influenced by various issues, including financial fraud in startup companies.

“There have indeed been many cases,” said Melisa.

“But from East Ventures’ side, what we prioritize are fundamental companies. The company must still be solid. We focus on portfolio companies becoming profitable.”

Slight Growth Compared to Early 2024

Despite the recent decline, there was a 7% increase when comparing the second half of 2024 to the first half of that year.

“If we try to look at the positive side, actually the figure for H1 2025 went up if we compare it to H1 2024. So, there has been an increase,” said Melisa.

Melisa expressed hope for a future rebound in startup funding across the region.

“We hope the funding trend can continue to rise in the future,” she said.

PHOTO: FREEPIK

This article was created with AI assistance.