Venture capital funds in ASEAN raised $500m in H1 2019

However, buyout-backed dealmaking slowed to 20 deals worth $400m so far.

Six ASEAN-focused venture capital funds have raised $500m in the first half of the year and are on the way to match the record-breaking $900m raised by 17 funds from 2018, research and consultancy firm Preqin reported.

Buyout and growth fundraising declined to $800m in 2018 from the $3.9b peak in 2014, but that total is said to have already been equalled by 2019 YTD.

Assets under management (AUM) in private equity and venture capital rose slightly to $28b in 2018 from $26b the previous year. There are 70 private equity funds focused on ASEAN, targeting an aggregate $8.5b.

The region has also recorded 222 venture capital deals in 2019 YTD, on track to match the record 441 in 2018. Total deal value is so far at $3.4b.

"With several large cities on the global stage, and governments that are encouraging entrepreneurship and technological innovation, these countries make fertile ground for venture capital investment in particular," Preqin head of Asia research & operations Ee Fai Kam said.

Meanwhile, buyout-backed dealmaking slowed down to 20 deals collectively worth $400m in YTD 2019, as compared to 68 deals worth $14b in 2017.

A vast majority (84%) of investors in ASEAN-focused funds are based outside the region, and about half of domestic investors are currently active in private equity.