Funding to Asia-based startups ticked lower in 2025, marking a challenging year for the continent’s vibrant innovation ecosystem. Despite a prevailing sense of caution and macroeconomic headwinds that dampened investor enthusiasm for much of the year, the fourth quarter concluded the annum on an unequivocally positive note, registering the highest quarterly investment tally of the year, according to proprietary Crunchbase data. This ‘tale of two halves’ encapsulates the complex dynamics at play, revealing both persistent investor restraint and emerging pockets of optimism and strategic investment.

In total, investors deployed an estimated $67.5 billion into reported seed- through growth-stage rounds for companies across Asia throughout 2025. This figure represents a notable decline of approximately 6% from the $71.8 billion recorded in 2024, and critically, marks the lowest annual total in five years. The dip underscores a broader recalibration within the venture capital landscape, as investors moved away from the frothy valuations and rapid deployment characteristic of the 2021-2022 boom, favoring instead a more measured, due-diligence-intensive approach.

The subdued annual numbers were predominantly a consequence of weak investment activity observed in the first half of the year. Global inflation concerns, rising interest rates, and geopolitical uncertainties created a risk-averse environment, prompting many VCs to pause, consolidate portfolios, and focus on existing investments rather than initiating new, large-scale deals. However, a significant shift in momentum became palpable in the latter half of the year, boosted in particular by a resurgence of investment into Chinese startups, signaling a potential thaw in what had been a prolonged period of cautious capital deployment.

This upward trend culminated impressively in Q4, with a robust $21.7 billion in reported investments. This quarterly performance represents a substantial rise of 19% quarter over quarter and an even more encouraging 22% year over year, indicating a strong closing surge that offers a glimmer of hope for 2026. The increase was most pronounced for late-stage dealmaking, suggesting a renewed appetite for backing more mature companies with proven business models and clear paths to profitability or scale.

For broader perspective and deeper understanding, this report delves into dealmaking across various stages of startup development, offers a country-by-country analysis of funding flows, and provides a focused examination of the burgeoning AI-focused investment landscape across Asia.

Table of Contents

• Late Stage Funding Sees Significant Boost
• Early Stage Investment Holds Steady
• Seed Stage Funding Signals Future Growth
• AI Investment Reaches New Heights
• Country-by-Country Funding Tallies: China Leads the Charge
• The Big Picture: Restrained, But Looking Up
• Methodology
• Glossary of Funding Terms
• Related Reading

Late Stage Funding Sees Significant Boost

Later-stage startups, often representing companies with established products, customer bases, and revenue streams, received the largest share of funding in Asia, becoming a significant driver of the Q4 rebound. This trend often reflects a "flight to quality" by investors during uncertain times, where less risk is perceived in more mature companies.

An estimated $10.4 billion flowed into Asia-based companies at Series C and beyond in Q4, per Crunchbase data, marking it as the highest quarterly total of the year. This substantial injection of capital underscores a renewed confidence in growth-stage companies capable of navigating competitive markets and delivering strong returns. For the full year, meanwhile, later-stage and technology growth investment totaled $30.8 billion, showcasing the enduring appeal of these more developed ventures even amidst a general slowdown.

A few "jumbo rounds" for China-based startups played a pivotal role in boosting the Q4 totals, highlighting China’s continued dominance in attracting significant capital for its domestic champions. These included a reported $874 million Series C for electric vehicle (EV) brand Deepal, a testament to China’s aggressive push in the new energy vehicle sector and investor confidence in its market leaders. Additionally, autonomous delivery vehicle provider Neolix secured a substantial $600 million Series D, pointing to the ongoing investment in intelligent logistics and last-mile solutions. The artificial intelligence sector also saw massive backing, with agentic AI company Moonshot AI raising an impressive $500 million Series C, signaling the escalating global race in advanced AI development and China’s prominent role within it. These mega-deals not only bolstered the overall funding numbers but also set a precedent for strategic investments in future-forward industries.

Early Stage Investment Holds Steady

While late-stage deals grabbed headlines, early-stage investors also concluded the year on a positive note, underscoring the continuous flow of innovation within Asia. This segment is crucial for the health of the startup ecosystem, representing the pipeline of future growth companies.

Early-stage startups, typically at Series A and Series B stages, attracted $8.9 billion in reported Q4 deals, making it the highest quarterly total of the year. This performance indicates that despite broader market anxieties, investors remain keen on backing promising new ventures with high growth potential, albeit with potentially more rigorous due diligence processes. For the full year, funding at Series A and Series B stages totaled $28.2 billion. While a significant sum, this figure was down about 10% year over year, reflecting the tighter market conditions for nascent companies compared to the peak years.

Similar to the late-stage segment, a few large individual rounds helped to lift the early-stage tallies. These included NeueHCT, a startup focused on intelligent driving technology, which secured a remarkable $200 million financing. This highlights the continued investor interest in the convergence of AI, automotive technology, and smart infrastructure. Furthermore, AA-I Technologies, an Israeli startup specializing in artificial general intelligence (AGI), also picked up a $200 million financing. This significant investment in AGI underscores the global recognition of Israel’s deep tech prowess and the increasing belief in the transformative power of advanced AI.

Seed Stage Funding Signals Future Growth

Seed-stage investment, the earliest form of venture capital, also demonstrated positive momentum in Q4, providing a vital indicator for the future health of the startup ecosystem. While often smaller in individual amounts, the volume and consistency of seed deals are crucial for nurturing nascent ideas into viable businesses.

Seed-stage investment moved higher in Q4, with $2.1 billion in reported deals. This figure represents the highest total in the past four quarters, signifying a renewed willingness among angel investors and seed funds to back foundational innovation. It’s important to note that seed funding data typically experiences a significant lag, meaning this tally is expected to rise further over time as more deals are officially reported and added to the dataset, painting an even more robust picture.

For the full year, meanwhile, reported seed funding to startups in Asia was estimated at $8.2 billion. This figure, while substantial, was down about 6% from 2024, mirroring the cautious sentiment that characterized much of the year. However, the strong Q4 performance suggests a potential turning point, indicating that the foundational layers of the startup ecosystem are actively being replenished, promising a fresh wave of innovation in the coming years.

AI Investment Reaches New Heights

The year 2025 unequivocally marked a landmark period for artificial intelligence investment across Asia, scaling to unprecedented heights and peaking emphatically in the fourth quarter. This surge reflects the global frenzy and transformative potential perceived in AI technologies, with Asia positioning itself as a critical hub for innovation and deployment.

For the full year, investment directed towards startups categorized under Crunchbase’s AI-related categories totaled an impressive $16.7 billion. What’s even more striking is the concentration of this capital: just over 38% of this colossal sum was deployed in Q4 alone. This late-year explosion in AI funding suggests that investors were either waiting for clearer market signals, identifying breakthrough technologies, or simply accelerating their bets in a rapidly evolving and competitive landscape.

The types of AI companies attracting this capital were diverse, ranging from foundational model developers to application-specific AI solutions. The significant funding rounds for companies like Moonshot AI underscore the interest in agentic AI, which focuses on developing AI systems capable of understanding complex goals and executing tasks autonomously. Beyond foundational models, investments flowed into AI infrastructure, enterprise AI solutions for various industries (e.g., healthcare, finance, logistics), and AI-powered hardware. The escalating global competition in AI development, particularly between the US and China, has fueled strategic investments aimed at securing technological leadership and fostering domestic champions. Asia’s rich talent pool, vast consumer markets, and government support for strategic technologies are key factors driving this investment boom.

Country-by-Country Funding Tallies: China Leads the Charge

A granular look at funding distribution across Asian countries reveals persistent trends and some notable shifts. While China’s startup funding remains significantly below its historical highs seen during the 2020-2021 peak, the country emphatically reaffirmed its position as the leading destination for venture investment across Asia. Its sheer market size, robust technological infrastructure, and strategic government initiatives continue to attract substantial capital.

Following China, India maintained its strong position as the second-largest recipient of venture capital in Asia. India’s growth is driven by its burgeoning digital economy, a vast domestic market, and a vibrant ecosystem in sectors like FinTech, SaaS, and consumer tech. Israel, despite its smaller geographical footprint, consistently ranks high, largely due to its deep tech innovation, cybersecurity expertise, and pioneering work in areas like AGI. Japan and Singapore rounded out the top five, with Japan showing increasing activity, particularly from corporate venture capital, and Singapore solidifying its role as a regional hub for Southeast Asian investments, leveraging its stable regulatory environment and strong government support.

For Q4 specifically, we observed China further widen its lead, a direct consequence of the large deals around electric vehicles, autonomous driving, and AI infrastructure mentioned earlier. These strategic sectors align with national priorities and attract both domestic and international investors keen on tapping into China’s industrial and technological ambitions. India’s performance, while strong, did not see the same dramatic Q4 surge, suggesting a more consistent, albeit slightly moderated, investment pace. Meanwhile, Singapore continued to be a crucial gateway for funding into the broader Southeast Asian region, attracting capital for regional expansion and fostering a diverse range of startups. The diverse performances across these key markets highlight the varied economic conditions and strategic investment focuses within the continent.

The Big Picture: Restrained, But Looking Up

Overall, the funding tallies for Asian startups in 2025 paint a complex image of an investment environment that, for much of the year, remained constrained, but ultimately concluded with some bullish undertones. The initial half of the year reflected a necessary market correction and a period of investor caution, following the exuberance of previous years. Valuations were scrutinized more closely, and a stronger emphasis was placed on profitability and sustainable growth rather than hyper-growth at all costs.

One particularly positive and significant indicator, however, is the clear pickup in investment activity and dollar volume in Q4. This strong closing performance suggests that momentum is unequivocally upward, not downward. It implies that a significant portion of investors, having weathered the economic uncertainties and recalibrated their strategies, are now ready to deploy capital into promising ventures. This renewed confidence could be attributed to several factors: a perceived stabilization of global economic conditions, a clearer outlook on interest rates, and the emergence of compelling technological breakthroughs, particularly in AI.

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 and early 2022. During those "boom" years, capital was deployed at an unprecedented rate, often leading to inflated valuations and less stringent due diligence. The current environment, while more challenging, is arguably healthier and more sustainable in the long run, fostering greater discipline among both investors and founders. So, while the recent momentum is a welcome sign, there remains a considerable amount of catching up to do before reaching the previous highs, and the market will likely continue to favor resilient, innovative, and fundamentally sound businesses in the years to come. The "restrained but looking up" narrative suggests a cautious optimism, where strategic bets on transformative technologies and strong regional players are driving a gradual, yet meaningful, recovery.

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Data is as of Jan. 4, 2026.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year as additional deals are reported and added to the dataset. Therefore, the seed funding figures presented should be considered preliminary and subject to upward revision over time.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs, and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price to ensure accuracy and consistency across the dataset.

Glossary of Funding Terms

Seed and angel consists of seed, pre-seed, and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding, and convertible notes at $3 million (USD or as-converted USD equivalent) or less. These rounds are foundational for early-stage companies, providing initial capital to develop prototypes, conduct market research, and build initial teams.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture, and other rounds above $3 million, and those less than or equal to $15 million. This stage is critical for companies to scale their operations, refine their product-market fit, and expand their customer base.

Late-stage 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 above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round. Late-stage funding is typically used for significant market expansion, internationalization, or preparing for an IPO or acquisition.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. This category often blurs the lines between traditional venture capital and private equity, supporting mature, high-growth technology companies seeking capital for further expansion or strategic initiatives without going public.

Related Reading:

• Global Venture Funding In Q4 2025: A Resilient Finish To A Challenging Year
• The State of AI Funding Across The Globe In 2025
• China’s Tech Revival: Key Sectors Driving Investment Growth

Illustration: Dom Guzman

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