Description

In 2022, US$ 10.4B was invested into Southeast Asia’s tech ecosystem, the third strongest year on record.

The region has also undergone a rapid change of active investor composition, causing a reallocation of capital between geographies and stages and significantly changing the valuation landscape.

In Cento Ventures’ Southeast Asia Tech Investments – 2022 report, we’ve analysed the region’s investment scene, as well as key trends and narratives.

Some key highlights of the report:

1. Business as usual despite the global tech downturn:
   Despite the souring capital market, Southeast Asia did not see an abnormal deficit of digital investment capital until the very end of 2022.
2. Similar investment volumes, and different investment priorities:
   Late-stage investors shifted their focus to earlier investment stages; some have exited the market entirely. Local investors took over.
3. Battle of narratives and search for the next growth story:
   Narratives of Vietnam’s “Next China” and the Philippines’ “Next Indonesia” were being tested against each other. The Phillipines overtook Vietnam in 2022, by the way.
4. Returns on invested capital arrive with vengeance:
   2022 was the best year in exit proceeds for investors, with four deals (two IPOs and two acquisitions) delivering more than US$500m of returns each.
5. The Work Must Continue: digital financial infrastructure upgrade:
   Close to half of the tech investment in the region went into fintech. Payment contributed to 96% of the fintech exit proceeds.