Investment in Asian startups reached a multiyear low in the first half of 2025, according to data from Crunchbase. Startups in the region secured just $26.2 billion in funding across all stages—seed through growth—during the first two quarters. The figures indicate a decline of approximately one-third compared to the same period in 2024. While funding increased slightly in the second quarter, totaling $13.5 billion, the overall trend reflects significant challenges for the startup ecosystem in Asia.
China Faces Significant Decline
China experienced the largest drop in venture funding within the region, with reported investments falling to $5.1 billion in Q2. This represents a decrease of 13% from the previous quarter and a steep 34% year-over-year decline. Factors contributing to the sluggish investment climate include fewer initial public offerings (IPOs) and mergers and acquisitions (M&A), increased government regulation, and a slowing economic landscape. Notable funding rounds in China included $207 million for AI chip startup Biren Technology and $181 million for SAIC Mobility, a division of SAIC Motor.
In contrast, India’s startup ecosystem appears more stable. Indian startups garnered $3.2 billion in funding during Q2, reflecting a modest increase compared to Q1, although still down from the previous year. The logistics sector emerged as a prominent area for investment, with significant rounds going to firms such as natural gas-powered trucking provider GreenLine and delivery platform Porter.
Mixed Results in Other Regions
Israel stood out with a notable rise in startup funding, attracting $1.9 billion in Q2, the highest quarterly total in over two years. The focus in Israel has been on cybersecurity and artificial intelligence, with Cato Networks securing $359 million and AI21 Labs obtaining $300 million. Meanwhile, Japan and Singapore also reported sequential increases in venture funding in the second quarter.
Despite these mixed results, late- and growth-stage funding for Asian startups saw a slight uptick in Q2, reaching $6.4 billion. Deal volume also improved, with 155 reported rounds, a small increase from the prior quarter. However, early-stage investment remained stagnant, with around $1.6 billion invested in seed deals across 827 known transactions.
The overall decline in startup funding across Asia highlights the need for improvement in this sector, particularly given that the region is home to approximately 60% of the global population. Both China and India, with their substantial populations and high levels of technology talent, are seen as having significant potential for growth in startup investments. As the market evolves, it will be crucial to observe whether investors recognize these opportunities in the coming quarters.
The data in this report is based on Crunchbase information as of July 3, 2025. It is important to note that data lags typically affect early-stage venture activities, with funding amounts often revised upward after a quarter’s closure. All figures are presented in U.S. dollars unless stated otherwise.
