An honest look at SEA venture in 2026, and where I'm still investing

An Honest Look at SEA Venture in 2026, and Where I'm Still Investing

The Southeast Asian venture market has experienced a significant downturn in recent years, with 2025 marking a six-year low in deal count. According to recent reports, the region raised a total of US$5.4 billion across 461 deals, with funding value climbing in the second half of the year. However, this growth was largely driven by a few large deals, leaving many to wonder when the market will rebound. As a journalist covering the startup scene in Bangladesh, I will delve into the current state of the SEA venture market and explore where investment opportunities still exist.

Background

The Southeast Asian startup ecosystem has experienced tremendous growth over the past decade, with countries such as Singapore, Indonesia, and Malaysia emerging as major hubs. However, the region has faced significant challenges in recent years, including the COVID-19 pandemic, geopolitical tensions, and economic uncertainty. These factors have contributed to a decline in venture funding, with many startups struggling to secure investment. In Bangladesh, the startup scene has also faced similar challenges, with many entrepreneurs facing difficulties in accessing funding and scaling their businesses.

Key Details

In 2025, the SEA venture market saw a significant decline in deal count, with only 461 deals recorded. This represents a six-year low, with the total funding value reaching US$5.4 billion. While the second half of the year saw an increase in funding value, this growth was largely driven by a few large deals. Early-stage funding was particularly affected, with many startups struggling to secure seed and series A funding. In contrast, late-stage funding saw an increase, with several large deals driving the growth in funding value. The e-commerce and fintech sectors were among the most affected, with many startups in these sectors facing significant challenges in securing funding.

Impact

The decline in SEA venture funding has had a significant impact on the startup ecosystem in Bangladesh. Many local startups have struggled to secure funding, with some being forced to scale back their operations or even shut down. The lack of funding has also made it difficult for startups to attract and retain talent, with many entrepreneurs facing significant challenges in building and maintaining their teams. However, despite these challenges, there are still opportunities for investment in the Bangladeshi startup scene. Impact investing is one area that is gaining traction, with many investors looking to support startups that are addressing social and environmental challenges. The agritech and edtech sectors are also emerging as areas of interest, with many startups in these sectors securing funding and scaling their businesses.

Conclusion

In conclusion, the SEA venture market is still awaiting a rebound after four years of downturn. While the second half of 2025 saw an increase in funding value, this growth was largely driven by a few large deals. In Bangladesh, the startup scene has faced similar challenges, with many entrepreneurs struggling to secure funding and scale their businesses. However, despite these challenges, there are still opportunities for investment in the local startup ecosystem. As an investor, I am still looking to support startups that are addressing social and environmental challenges, particularly in the areas of impact investing, agritech, and edtech. With the right support and funding, I believe that the Bangladeshi startup scene has the potential to rebound and thrive in the years to come.

Source: e27 Asia