Growth, expansion and late-stage VC funding rounds in APAC down by 22.5% in 2022 while early-stage rounds see marginal growth, finds GlobalData.
A total of 6,046 venture capital (VC) deals with disclosed funding rounds were announced in the Asia-Pacific (APAC) region in 2022, which is a decline of 6.8% over 2021. The decline was mainly driven by a massive 22.5% fall in announcement of growth, expansion and late-stage VC funding rounds (Series B onwards). Meanwhile, the number of early-stage VC funding rounds (Seed and Series A) announced in 2022 grew marginally by 0.8% compared to 2021, finds GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database revealed that a total of 4,417 early-stage VC funding rounds and 1,629 growth, expansion and late-stage VC funding rounds were announced in 2022.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although the APAC region experienced subdued VC funding activity in line with the global trend, it was relatively in a better position. Globally, there was a decline in announcement of both early-stage and growth, expansion and late-stage VC funding rounds. In contrast, there was a marginal growth in the number of early-stage funding rounds for the APAC region. Moreover, the decline in volume of growth, expansion and late-stage VC funding rounds was also relatively lesser for the region.”
The number of early-stage funding rounds announced globally in 2022 fell by 2% compared to 2021, while the volume of growth, expansion and late-stage VC funding rounds was down by 26.8%.
Early-stage funding rounds dominated the APAC VC funding landscape in terms of volume with a 73.1% share in 2022, while growth, expansion and late-stage VC funding rounds accounted for a 26.9% share.
Meanwhile, most of the VC funding rounds registered a decline in the APAC region in 2022 compared to the previous year. In fact, Series A funding rounds also experienced decline but despite that early-stage funding rounds managed to register growth majorly driven by an increase in the number of seed funding rounds.
