Southeast Asia Tech Investment 2022 (Cento Ventures)

Summary

• Southeast Asia attracted $10.4B in total capital invested across 929 deals in 2022, representing the third strongest year on record.p.7
• Investment volume dropped by 48% in H2 2022 to $3.6B compared to H1 2022 ($6.8B), following standard seasonal patterns from previous years.p.8
• Mega-deal funding ($100M+ per deal) declined to $3B in 2022, dropping by 50% in H2 compared to H1, returning to 2016 levels.p.10
• Digital financial services remained the dominant sector, capturing 43% of total equity funding ($3,696M) in 2022.p.14
• Indonesia accounted for 41% of total VC capital invested in 2022, while Singapore held 30% and the Philippines overtook Vietnam for 3rd place with 9%.p.13

Key insights

1. Southeast Asia's tech capital investment decreased by 28% in 2022 compared to 2021, showing more resilience than LATAM (-53%) and China (-46%).p.9
2. Series C+ funding fell by 83% in H2 2022 relative to H1 2022 as global late-stage growth investors retreated from the region.p.11
3. Core payments and wealth management sub-sectors continued to lead digital financial service investments, absorbing over half of the sector's funding.p.15
4. Series B valuations saw a 38% drop in H2 2022 to a median of $55.0M compared to $90.0M in H1 2022.p.17
5. Series B median deal sizes dropped by 41% from $15.0M in H1 2022 to $9.0M in H2 2022.p.18
6. Initial public offerings (IPOs) delivered 46% of overall exit proceeds in 2022, led by the GoTo and Beli IDX listings.p.24