Startup Funding in Southeast Asia: From Pre-Seed to Series D

Turning a promising idea into a thriving business requires more than just vision and passion — it requires capital. Especially in Southeast Asia, where the startup ecosystem has been growing exponentially over the last decade, raising funds at different stages of growth is critical to success. From the initial steps of ideation to scaling across international markets, understanding the landscape of startup funding is crucial.

In this paper, we’ll explore the distinct stages of startup funding within the SEA region, provide up-to-date insights into funding amounts, and highlight what startups need to demonstrate at each round.

How Startup Funding Works

Growing a startup requires significant capital. Early on, founders can bootstrap with personal savings or seek help from family and friends. But as a startup scales, expenses like product development, hiring, and marketing quickly balloon, often outpacing any early revenues.

To bridge the gap, startups turn to external funding from investors, typically offering equity in exchange for capital. These investors provide the financial runway startups need to grow to the next stage, much like checkpoints in a race. Every successful round of funding provides more time for startups to scale, achieve key milestones, and reach the next round of financing.

Pre-Seed Funding: Laying the Groundwork

Pre-seed funding is the earliest and most nascent stage of financing. Startups at this stage are often still refining their product concepts and building an MVP (Minimum Viable Product). Pre-seed funding helps founders cover basic expenses such as developing a prototype, conducting market research, and assembling a small team.

In SEA, pre-seed funding is typically sourced from family and friends, angel investors, or startup incubators like Antler. It often ranges between $25,000 and $200,000, depending on the type of startup and local market conditions. Singapore tends to offer higher pre-seed funding amounts due to its mature ecosystem, while other markets like Vietnam or the Philippines might see lower averages.

Investors at this stage are betting on the founding team’s potential more than the product itself, given that the business idea is still in its infancy. For most startups, pre-seed funding is a quiet phase with little public recognition, as founders are just starting to gain momentum.

Seed Funding: Turning Ideas into Action

Sseed funding marks the point where startups are ready to start turning ideas into reality. Southeast Asia’s dynamic and fast-growing startup ecosystem has seen a significant rise in seed funding over the past five years. Typically, this funding round ranges from $250,000 to $1.5 million, though in certain cases — particularly for tech companies — this figure can rise to $3 million or more, especially in Singapore and Indonesia.

At the seed stage, startups should have a functional MVP, a core team, and initial market validation. Investors are looking for tangible signs of traction, such as early user growth, revenue, or at least strong user engagement. In SEA, seed funding comes from a mix of angel investors, micro-VCs, syndicates, and early-stage venture capital firms. For instance, platforms like A2D Ventures and Angel School have been active players in the region, seeding promising startups that show strong growth potential.

Seed funding is primarily used for scaling product development, hiring essential team members, and building out the startup’s market strategy. At this stage, startups should also begin refining their customer acquisition strategies, laying the groundwork for Series A funding.

Series A Funding: Scaling with Confidence

Once startups gain some traction and prove their market fit, they move on to Series A funding. This round typically occurs when the startup has demonstrated that its business model works and that there is significant demand for its product. The goal of Series A is to scale aggressively — whether that means increasing user acquisition, expanding into new markets, or developing additional products.

In Southeast Asia, Series A rounds generally range from $2 million to $10 million, although some companies, especially those in fintech or e-commerce, may raise up to $15 million or more in this round. Countries like Singapore and Indonesia often see higher valuations, as investors there are more willing to make larger bets on startups that have regional expansion potential.

Series A investors are typically venture capital firms with experience in scaling companies. At this point, they expect the startup to have a well-developed core team, proven product-market fit, and clear growth metrics. For instance, firms like Peak XV or platforms like Wows Global have been key players in funding Series A rounds in the region.

Series B Funding: Expanding Market Reach

Companies that reach Series B funding are scaling rapidly and ready to capture a significant share of the market. Startups at this stage typically have solid user bases, consistent revenue, and a proven ability to scale. The goal now is to expand aggressively — whether by entering new markets, acquiring more customers, or increasing product offerings.

In Southeast Asia, Series B funding ranges between $10 million and $30 million, though it can climb higher depending on the industry. For example, fintech and e-commerce companies may raise up to $50 million at this stage as they work to solidify their market leadership. This is especially true in markets like Indonesia, where the potential user base is vast and the competition is fierce.

Series B rounds are often led by established VCs, and may also attract corporate investors or strategic partners looking to integrate innovative startups into their ecosystems. These investors expect to see clear paths to profitability, robust revenue growth, and the ability to execute large-scale operations.

Series C and Beyond: The Path to Maturity

Few Southeast Asian startups make it to Series C and beyond, but those that do are often market leaders. Companies at this stage are focused on expanding internationally, acquiring competitors, or preparing for an eventual IPO. The typical Series C funding round in SEA can range from $30 million to $100 million, depending on the startup’s growth trajectory and expansion goals.

Investors in Series C rounds are a mix of VCs, private equity firms, and strategic investors. They are often focused on ensuring the company can dominate its market and scale efficiently into new geographies or product verticals. Companies like Grab, Tokopedia, and Opn (ex Omise) — all giants in Southeast Asia — are examples of startups that reached this level of funding and went on to become unicorns.

At this stage, the focus is less on survival or even scaling, and more on refining the business, expanding the product portfolio, and ensuring long-term profitability. Series C funding also often signals that a company is preparing for an IPO, though some may continue raising private rounds, especially if they’re eyeing further international expansion.

Series D: The Exception, Not the Rule

Series D funding is relatively rare in Southeast Asia. By this stage, most startups either reach profitability or look toward an IPO or acquisition. However, for those that do raise a Series D, the funding is typically used for specific objectives, such as acquiring competitors or expanding into entirely new markets.

In the few cases where Series D does occur, such as Kredivo and Carsome, funding amounts can range from $50 million to $200 million or more. Startups that reach this stage are typically dominant players in their respective industries, generating significant revenue and looking to solidify their position before going public or being acquired.

Bootstrapping in Southeast Asia

While venture capital is a popular route for scaling a startup, some companies in Southeast Asia choose to bootstrap. Bootstrapping allows founders to retain full control of their business and grow at a sustainable pace. This model is particularly popular in markets like Vietnam and the Philippines, where external funding ecosystems are still developing.

Startups that bootstrap often focus on lean operations and rely on organic growth, aiming for profitability earlier than their VC-backed counterparts. However, bootstrapping can limit how quickly a startup can scale, especially when competing against well-funded rivals.

Conclusion: The Road Ahead for SEA Startups

Southeast Asia’s startup ecosystem is vibrant, dynamic, and continues to attract significant attention from global investors. As the region’s digital economy booms, more startups are securing larger rounds of funding and scaling across borders. Understanding the funding landscape at each stage — whether pre-seed or Series D — is crucial for founders looking to navigate the complexities of raising capital.

Each round of funding serves as a stepping stone, moving startups closer to becoming market leaders. Whether you’re just starting or preparing for Series C, ensuring you’re equipped with the right financial strategy and investor connections will be key to long-term success in this competitive landscape.

Cheat sheet

Pre-Seed

• Funding Description: Initial capital to validate the idea, often from personal savings, friends, family, or angel investors.
• Product Development Stage: Concept/Idea Stage
• Activities: Founders are working on validating the idea, conducting market research, and building an early prototype or proof of concept (PoC).

Seed

• Funding Description: Early capital from angel investors, seed funds, or accelerators to develop a minimum viable product (MVP).
• Product Development Stage: MVP Development
• Activities: Developing a basic version of the product with core features to test in the market, gather feedback, and validate market demand.
• Median Equity Dilution: 20%

Series A

• Funding Description: Larger investment from venture capital (VC) firms to scale the product, user base, and market reach.
• Product Development Stage: Product-Market Fit
• Activities: Refining the product based on user feedback, improving features, and ensuring that the product solves a clear market need.
• Median Equity Dilution: 20%

Series B

• Funding Description: Funding to expand business operations, grow the team, and scale marketing and sales efforts.
• Product Development Stage: Product Scaling
• Activities: Scaling the product for larger markets, optimizing performance, adding new features, and expanding customer acquisition.
• Median Equity Dilution: 17%

Series C and Beyond

• Funding Description: Funds are used for major expansion, mergers, acquisitions, or developing new product lines.
• Product Development Stage: Market Expansion & Diversification
• Activities: Diversifying product offerings, expanding into new markets, and potentially developing additional products or features.
• Median Equity Dilution: 23%

Mezzanine/Bridge Financing

• Funding Description: Prepares the company for an initial public offering (IPO) or acquisition.
• Product Development Stage: Market Dominance & Optimization
• Activities: Fine-tuning operations, optimizing product features, and expanding into international or untapped markets.

IPO (Initial Public Offering)

• Funding Description: The company goes public, selling shares to the public to raise capital for further expansion.
• Product Development Stage: Continuous Innovation & Expansion
• Activities: Focusing on innovation, new product development, and maintaining market leadership while generating returns for shareholders.

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