In the first half of 2022, Southeast Asia overtook China for the first time in the value of private capital exits, according to data shared by Global Private Capital Association (GPCA).
Exits from Southeast Asia in January-June 2022 surged 736% YoY to $13.7 billion, while it fell 70% YoY to $10.5 billion in China, the data showed.
Southeast Asia was among the few regions that bucked the downtrend as the value of exits fell 45% in the Asia-Pacific region and 60% in India.
Investors return to the deal table
Startups in Asia have been waiting out the current weak market, which has resulted in a significant slowdown of IPOs this year. However, with investments returning, there may be a revival in the IPO market as well.
Private capital investments in Southeast Asia and India increased by 39% and 20% respectively in H1 2022, compared with a year ago, the GPCA data showed. Private capital investments in China, meanwhile, dropped 37% to $33 billion.
Venture capital investments — up 92% in Southeast Asia and 87% in India respectively — drove the growth in overall private capital investments in the regions. In contrast, VC investments fell 39% in China in H1.
Global market volatility, inflation, and the added pressure of unpredictable regulatory changes may hinder China’s ability to lead private capital exits and investments.
Singapore tops in Web 3 investments
Singapore dominated Web3 investments in H1, accounting for almost half ($351.6 million) of all Web 3 investments in Southeast Asia ($711.4 million) in the period. The city-state was followed by Vietnam and Indonesia, according to GCPA data.
Singapore crypto exchange KuCoin’s $150 million fundraise in May this year, which valued it at $10 billion, was the top Web 3 deal in Jan-June 2022, alongside Vietnam-based Sky Mavis’s fundraising led by Binance in April.
GPCA, headquartered in New York and Singapore, is a proprietary data platform that researches on fundraising, investment and exit activity by private equity, venture capital and more.