In total, investors poured a substantial $67.5 billion into reported seed- through growth-stage rounds for companies across Asia last year. While this figure underscores the continued vibrancy of the continent’s startup ecosystem, it also represents a decline of approximately 6% from the investment levels seen in 2024. More significantly, this marks the lowest annual total recorded in the past five years, indicating a period of recalibration following the peak funding years of 2021 and 2022. This contraction can be attributed to a confluence of factors, including persistent inflationary pressures, rising interest rates globally, geopolitical uncertainties, and a more stringent approach from venture capitalists prioritizing profitability and sustainable growth over rapid expansion at all costs.

The lackluster numbers for the full year resulted mostly from weak investment activity experienced throughout the first half. This period saw investors adopting a "wait-and-see" approach, often extending due diligence processes and demanding clearer paths to monetization from potential portfolio companies. However, a noticeable shift in momentum became apparent in the latter half of the year, boosted in particular by a significant resurgence in investment directed towards Chinese startups. This revival in China was spurred by a combination of government support for strategic technologies, a stabilization of regulatory environments, and a renewed focus on domestic innovation, especially in high-tech sectors.

Funding gains culminated dramatically in the fourth quarter, with a reported $21.7 billion in total investments across the region. This impressive figure represents a substantial rise of 19% quarter over quarter, signaling a strong recovery in investor confidence and deal flow. Furthermore, it marks a robust 22% increase year over year, making Q4 2025 a standout period compared to the previous year’s corresponding quarter. The upward trend was most pronounced and impactful within the late-stage dealmaking segment, where larger rounds for more mature companies dominated the headlines, signaling a willingness to back proven models and technologies with significant capital. This late-stage emphasis often indicates a market maturing and investors seeking less risky, more established opportunities.

For broader perspective and a granular understanding of these trends, we delve into dealmaking across various stages of startup development, provide a country-by-country analysis of funding tallies, and shine a specific light on the burgeoning investment landscape surrounding AI-focused ventures.

Table of contents

  • Late stage
  • Early stage
  • Seed stage
  • AI investment
  • Country-by-country funding tallies
  • The big picture: Restrained, but looking up
  • Methodology
  • Glossary of funding terms

Late stage

Later-stage startups, often seen as bellwethers for investor confidence in more mature ventures, received the largest share of funding, demonstrating a clear preference for companies with established market presence and clearer revenue models. It is here that we observed the most significant impact of the Q4 surge.

An estimated $10.4 billion flowed into Asia-based companies at Series C and beyond during Q4, according to Crunchbase data, marking the highest quarterly total of the year. This concentrated late-stage investment reflects a trend where venture capitalists, facing tighter capital markets, coalesce around fewer, more promising opportunities with higher perceived stability and scalability. For the full year, meanwhile, later-stage and technology growth investment collectively totaled $30.8 billion, underpinning the substantial capital still available for mature ventures despite the overall market slowdown.

The Q4 figures were significantly buoyed by a few "jumbo rounds" primarily directed at China-based startups, highlighting the resurgence of large-scale capital deployment in the country’s tech sector. These landmark deals included a reported $874 million Series C for EV brand Deepal, a major player in China’s intensely competitive electric vehicle market, signaling continued bullishness on the future of sustainable transportation and domestic EV innovation. Another substantial round was a $600 million Series D for autonomous delivery vehicle provider Neolix, underscoring the rapid advancements and commercial applications of self-driving technology in logistics. Perhaps most indicative of emerging trends was a $500 million Series C for agentic AI company Moonshot AI, which points to the explosive growth and strategic importance of artificial intelligence, particularly advanced AI models capable of complex decision-making, in the region’s tech agenda. These investments are not just financial injections but also strategic endorsements of China’s technological leadership in these critical sectors.

Early stage

Early-stage investors also concluded the year on a positive note, demonstrating renewed appetite for innovative ventures at their nascent stages. Q4 saw $8.9 billion in reported deals for early-stage companies, marking the highest quarterly total for this segment in 2025. This rebound is crucial, as early-stage funding is the lifeblood of future innovation, nurturing the next generation of industry leaders. However, the full-year picture for early-stage funding tells a story of moderation; funding at Series A and Series B stages totaled $28.2 billion, representing a decline of approximately 10% year over year. This indicates that while Q4 showed promise, the overall environment for early-stage companies remained challenging, with investors likely exercising greater scrutiny over business models and market potential.

Similar to late-stage funding, a few large individual rounds played a significant role in elevating the early-stage tallies for Q4. These included Horizon Continental Technology (NeueHCT), a startup focused on intelligent driving technology, which secured a notable $200 million financing. This investment aligns with the broader trend of heavy capital allocation towards automotive technology, particularly in China, as seen with Deepal and Neolix, indicating a strong ecosystem play. Another significant early-stage deal was for AA-I Technologies, an Israeli startup specializing in artificial general intelligence (AGI), which also picked up $200 million. This highlights Israel’s continued role as a hub for deep tech innovation and the global interest in foundational AI research, extending beyond the immediate applications of current AI models.

Seed stage

Seed-stage investment, the earliest form of venture capital and a critical indicator of grassroots innovation, also experienced an uptick in Q4. The quarter recorded $2.1 billion in reported deals, making it the highest total in the past four quarters. This positive momentum suggests that despite a tougher overall year, the pipeline for new ideas and entrepreneurial ventures remains active, with investors willing to back promising concepts at their inception. We anticipate this tally to rise slightly more over time as additional deals are reported and added to the Crunchbase dataset, a common phenomenon for early-stage funding due to reporting lags.

For the full year, however, reported seed funding to startups in Asia was estimated at $8.2 billion. This figure represents a decline of approximately 6% from 2024, mirroring the broader market trend of caution. While a 6% drop is less severe than some other stages, it nonetheless signifies a more competitive landscape for nascent startups to secure initial capital, requiring clearer value propositions and stronger founding teams from the outset. This trend underscores the importance of robust incubator and accelerator programs, as well as angel networks, in sustaining the early innovation ecosystem.

AI investment

Artificial intelligence investment was a resounding success story in 2025, scaling to record heights across Asia and peaking dramatically in the fourth quarter. This sector defied the broader downturn, attracting significant capital as investors flocked to capitalize on the transformative potential of AI technologies.

For the full year, investment directed towards startups categorized under Crunchbase’s AI-related categories totaled an impressive $16.7 billion. This substantial sum highlights the strategic importance and immense market opportunities perceived in AI. Remarkably, just over 38% of this total AI investment, or approximately $6.3 billion, occurred in Q4 alone. This concentration of funding in the final quarter underscores the accelerating pace of AI development and adoption, driven by breakthroughs in generative AI, large language models, and specialized AI applications across various industries. The significant round for Moonshot AI, an agentic AI company, mentioned earlier, is a prime example of the kind of capital being deployed into cutting-edge AI research and development, particularly in China. The surge in AI funding reflects a global tech race, with Asian startups and investors playing a pivotal role in shaping the future of this critical technology.

Country-by-country funding tallies

While China’s startup funding remains considerably below its historical highs seen in the heady days of 2021, the country firmly maintained its position as the leading destination for venture investment across Asia in 2025. Its sheer market size, government backing for strategic industries, and robust technological infrastructure continue to make it an attractive hub for capital. Following China, India emerged as the second-largest recipient of venture capital, buoyed by its vast domestic market, burgeoning digital economy, and strong developer talent pool. Israel, renowned for its deep tech innovation and cybersecurity prowess, secured the third spot, demonstrating its continued global relevance despite its relatively smaller size. Japan, with its strong industrial base and renewed focus on digital transformation, and Singapore, serving as a regional financial and tech hub for Southeast Asia, rounded out the top five.

For Q4 specifically, we observed China further widen its lead over other Asian nations. This acceleration was largely bolstered by the aforementioned large deals concentrated around strategic sectors such as electric vehicles, autonomous driving, and advanced AI infrastructure, signaling a concentrated effort to dominate these future-defining technologies. India’s Q4 performance remained robust, driven by investments in fintech, SaaS, and consumer tech. Israel continued to attract significant capital for its cybersecurity and enterprise software solutions, while Japan saw increased interest in its robotics and hardware startups. Singapore, meanwhile, leveraged its role as a gateway to Southeast Asia, attracting funds for regional expansion and cross-border innovation. This varied landscape underscores the diverse strengths and investment priorities across Asia’s dynamic startup ecosystems.

The big picture: Restrained, but looking up

Overall, the funding tallies for 2025 paint a nuanced image of an investment environment that, while initially constrained, concluded with some decidedly bullish undertones. The year began with palpable caution, reflecting broader global economic anxieties and a shift towards more conservative investment strategies. However, the marked pickup in investment during Q4 is a particularly positive indicator, suggesting that the momentum is now upward, rather than downward. This late-year surge could signify a turning point, potentially setting the stage for a more robust 2026 as investor confidence gradually returns and capital becomes more readily available for promising ventures.

Still, it is crucial to maintain perspective. Despite the encouraging Q4 rebound, overall funding levels for 2025 remain well below the peak levels witnessed in 2021, a period characterized by abundant liquidity and soaring valuations. There is, therefore, a significant amount of catching up to do before the Asian startup ecosystem fully recovers its previous highs. This recovery will likely be driven by sustained economic stability, continued innovation in critical sectors like AI and deep tech, and a renewed focus on scalable, profitable business models. The market is maturing, demanding greater accountability and clearer paths to profitability from startups, a trend that is likely to persist in the coming years.

Methodology

The data contained in this report comes directly from Crunchbase, a leading platform for private company data, and is based on reported data. Data is as of January 4, 2026, capturing the most recent available information.

It is important to note that data lags are most pronounced at the earliest stages of venture activity. Consequently, seed funding amounts, in particular, tend to increase significantly after the end of a quarter or year as more deals are publicly disclosed and added to the database. This ongoing data collection means that final figures for seed rounds are typically higher than initial reported totals.

Please note that all funding values presented in this report are given in U.S. dollars unless otherwise specified. Crunchbase meticulously converts foreign currencies to U.S. dollars at the prevailing spot rate from the precise date funding rounds, acquisitions, IPOs, and other financial events are officially reported. Even if these events were added to Crunchbase long after their initial public announcement, foreign currency transactions are always converted at the historic spot price relevant to the event date, ensuring accuracy and consistency in reporting.

Glossary of funding terms

Seed and angel funding consists of seed, pre-seed, and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding, and convertible notes valued at $3 million (USD or as-converted USD equivalent) or less within this category. This stage typically represents the earliest investment into a startup, often used for initial product development, market research, and team building.

Early-stage funding comprises Series A and Series B rounds, as well as other round types fitting similar investment criteria. Crunchbase includes venture rounds of unknown series, corporate venture, and other rounds exceeding $3 million but less than or equal to $15 million in this category. Early-stage funding is generally used for scaling operations, expanding market reach, and further product refinement.

Late-stage funding consists of Series C, Series D, Series E, and later-lettered venture rounds following the "Series [Letter]" naming convention. Also included are venture rounds of unknown series, corporate venture, and other rounds exceeding $15 million. Corporate rounds are only included if a company has previously raised an equity funding at seed through a venture series funding round. Late-stage funding is typically for significant expansion, market dominance, or preparing for an IPO or acquisition.

Technology growth is a specific classification for a private-equity round raised by a company that has previously secured a "venture" round. Essentially, it encompasses any round from the previously defined stages (Seed, Early, Late) that is part of a growth equity investment strategy, often involving larger sums for accelerating market penetration, acquisitions, or significant R&D.

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Illustration: Dom Guzman

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