The State of the Startup Ecosystem in Southeast Asia (Second Talent)

Summary

• Southeast Asian startups raised $12.8 billion to July 2026, up 137% year on year.p.2
• Equity rounds fell 30% to 178 from 255 in the same period of 2025.p.2
• The average round rose from $21m to $72m, which means the same market with the money pushed into fewer hands.p.2
• Regional AI funding reads $4.1bn across 23 rounds to July 2026, against $2bn across 41 rounds in 2025.p.3
• Acquisitions reached 81 to July 2026 versus 164 in full-year 2025, and public listings 31 versus 82.p.2

Key insights

1. Three of the five largest rounds of the past two years are data centre or AI infrastructure.p.3
2. Kling AI raised $2.8bn and DayOne Data Centers $2.0bn in 2026.p.3
3. Stripping out Kling AI, 2026 AI funding falls to roughly $1.3bn, below the 2025 full year.p.3
4. 2025 funding was $5.37bn across 461 deals, with the deal count among the lowest in more than six years.p.3
5. Regional gross merchandise value reached $300bn in 2025 on revenue of $135bn, both growing 15% year on year.p.4
6. Singapore took more than 60% of regional deal count in 2025.p.4