APAC Startups Struggle with Post-VC Boom Recovery
Five years after venture capital markets reached their global peak, APAC startups are still navigating a challenging recovery. Dealmaking declined for four consecutive years following the 2021 boom before showing signs of improvement in 2026. However, PitchBook research indicates that while investment is rising again, many companies from the recent funding surge have struggled to secure follow-on rounds or achieve exits. Startups funded between 2020 and 2021 had a lower success rate compared to those backed during the earlier boom (2016–2017). Only 9.7% of these companies exited, versus 14.9%, while just 20.4% raised multiple rounds against 24.4%. Despite this, fewer startups from the recent cohort have failed compared to expectations given the broader pullback in venture capital. The data suggests that APAC startups may be more capital-efficient and able to extend their runways during lean times. However, it remains unclear whether these companies are operationally or financially healthier as they face ongoing challenges like AI disruption of SaaS models, geopolitical tensions, inflationary pressures, and public market volatility.
Topics: APAC startups entrepreneurship recovery VC funding trends