Southeast Asia-focused venture capital (VC) funds raised $1.3 billion in the first three months of 2020, ending a four-quarter streak of quarter-on-quarter growth as final closes slowed to a crawl.
Industry observers expect capital raising for venture funds to weaken for the remainder of the year, particularly for early-stage funds as investors hold off new fund commitments. In terms of the dry powder translating into investments, fund managers are expected to be cautious in pulling the trigger despite their loaded war chests. This could put downward pressure on startup valuations, although pandemic beneficiaries such as e-commerce, logistics, healthcare and education startups could emerge more resilient.
