SE ASIA DEAL REVIEW:Printed by But Thanh 70 q : i A Note From the Authors Ses This report covers fundraising activities by private companies in Southeast Asia in the second quarter of 2022. ‘While we provide historical data for context, more details on fundraising performance in previous quarters can be found on DealStreetAsia's Reports page. All data cited in this report is based on industry reports, company announcements, media reports, regulatory filings and DealStreetAsia's research. Considering the opaque nature of the Southeast Asian market, we strive to constantly update our data to ensure accuracy. If you spot an error or inaccuracy, please let us know at andi@dealstreetasiacom and/or deepshikha@dealstreetasia.com. Author Editor ‘Andi Haswidi Daepshikha Monga Head, ASEAN Research Esitor diaceas siacom ihs@deletrectasia.cobea nal cotmerinnzone SiGe) Table of Contents Asia ‘The great balancing act 4 | Healtntech sees steady ow of investments 22 GGameFirules the gaminglandscape 23 Key findings 58 country Review Resional overview Singapore: Homegrown startups fetch top dollars 25 Dealactvtes begin to reflect lobal economic woes 10 Indonesia: Fintech dominates top 10 funding rounds 2% SG and1D-baced startups generate 8% of deal value 41 Vietnam: Late COVID-19 contagion influences deal acthities 27 Lower deal count sen across Seedto Series Cstages 42 | MalaysatDealcount drops to lowestin 1 quarters 2a Seed vakationsoarsa investors competeforfreshcatch 13. Prilippines:Newunicorn Voyager drives deal value 29 Top 20 equity dealsin Q22022, 44. | Thulland:Deal activities ona downward trajectory 30 Deal trendspoting Insider sights Close to half of funding in Q2 went to fintech startups 16 Eko Kurniadi, Partner, Alpha JWC Ventures 32 Fintechhas largely ben esilentamidchanglngclimate «47 HerstonElton Powers, Managing Partner, 1982Ventures 88 DeFistartups drive wealttech investments 48 Genping Li Parner Vertex Ventures SE Asia & india u Investor appetite for DeFlremalnsrelatvely strong 18 Healthy low ofe-commercedealsinthesecondquarter——«20—=—_—isclaimers&Termsof Use 35 Online grocery startups ona wloning streak 24 | ContactUs 36The great balancing act ‘There sno liquidity crunch as such in Southeast Asia, but homegrown tech startups are finding itharder toraise funds and ‘expand their business. While fund managers still hold considerable dry powder raised during the financial market bull run in 2024, they have stepped up pressure on startups to achieve profitability faster and scale more efficiently, resulting partly ina string of high-profile layoffs that we witnessed in the past few months. Running in parallel, we saw valuations shrinking, particularly among ‘growth-stage startups, and funding deals being delayed. Although the stance of fund managers had been well predicted months ago due to factors suchas the tech stock crash ising inflation, global monetary tightening and rising geopolitical risks, we are now begint tossee it reflected in startup funding in the region. The total deal volume in the second ‘quarter fll sharper than Printed by But Thanh 70 malt eontactetnnkzone vn Itaid when most parts of Southeast Asta frst Implemented travel lockdowns to curb the ‘COVID-19 pandemic in Q2 2020. The median value of funding deals also suggest that valuations are undergoing corrections starting from Series Band above, while major funds are competing for early-stage startups, leaving littleroom for smaller players. In hedging their bets, some investors have Introduced spectal terms for funding, often at the cost ofthe startups. slower pace of investment and valuation normalisation are likely to continue well until next year. Growth-stage startups are going to find it harder to adjust, but young and smaller startups may have better flexibility in a challenging environment. Sectors that are ‘growing exponentially such as fitech and. gaming willbe in a better position toralse funds. And so too will resilient sectors with proven economics such as consumer retail, agriculture and healthcare. teKey findings ‘Slowing momentum. The total volume of equity investments in Southeast Asian startups fell by nearly 20% to 250 in Q2 2022 ‘relative to the previous quarter. The drop was sharper than the 15% contraction in Q2 2020 when the COVID-19 pandemic fist affected startup fundingin the region. Major deals, such as Coda Payments's $690 milion Series C round and Xendit's $300 million Series D, helped the region clock total deal value of {$4.77 billion, whichis higher than that in the previous quarter [P.10}. But this does not necessarily negate the impact of worsening. zlobal economic and geopolitical conditions on the risk appetite of investors as well as on the performance of local tech startups, which hhave seen astring ot lavots in the last few ‘months, Inthe ist six months of 2022, the region recorded 580 equity funding deals worth $9billionin total value. This compares 10.437 deals worth $9.3billionin the same period last year. However, we need to bear in mind there were carry-over deals from last ‘year that were finalised and announced in the first quarter, ‘Three more unicorns. Coda Payments, alongside Singapore-registered healthtech startup Biofourmis and Philippines-based fintech services firm Voyager Innovations, ‘made it tothe billion-dollar club in the second ‘quarter, bringing the total number of tech Unicorn created this year to five - the other two being Indonesian fintech lending frm ‘Akulaku and Singapore-based marketing tech startup Insider. Other major fundraisers in the third quarter include Singapore-based Envision Digital, which clocked the largest Series A round by a homegrown greentech ‘firm at $240 million, game publisher Sky Mavis, ‘with a $150 million Series C and Tessa Therapeutics with a $126 million Series A. The top 20 largest deals generated 62% of total equity funding ralsed in Q2 (2.14) Seed stage overcrowding, Seki slowing deal activities, seed to Series C Investment stages all recorded lower deal volumes in the second quarter. Seed stage saw the biggest drop as deal count shrunk by nearly 30% relative to Q1 2022 [P12]. The drop in volume was also accompanied by valuations. Our calculation of the median value of seed rounds in Q2 yielded $3 milion. This compares to $2.6 milion inthe previous {quarter and $1.6 million in the same period last year [2.13]. We partly attribute the ‘gradual uptick in valuations to the overcrowding atthe seed stage by major venture capital funds such as Sequoia Capital, B Capital and others with thelr big-ticket investments. Persistently strong activities in the decentralised finance (Defi) space also contributed to an increase In seed round valuations, our data shows. In contrast, the ‘median value of Series A rounds shows. relative stability, while Series B and C rounds trended noticeably lower. ng ntFintech steals the show. In 2021, one inevery four dollars of venture funding went to fintech startups. This trend was repeated inthe first quarter. By the second quarter, the share of fintech startups increased to 46% of the total funding value, which stood at $2.19 billion [2:16] nearly on par with the record-funding. amount ina single quarter as seen in Q3 2021. Singapore-based fintech startups received the largest share of total funding at 46.8%, followed by Indonesia with 39.6% and the Philippines with 11.2% [2.171 Def I driven. Largely due to the activites of DeFi-focused startups, wealthtech emerged as the top fintech category in terms of deal count inthe second quarter. Indonesian crypto ‘exchange Pintu and DeFi services platform EktaChaln collected the largest funding among blockchain-powered fintech firms at {$110 milion and $60 million, respectively. Overall, DeFi startups accounted for 3436 of total fintech deal volume and 10% ofthe total value[P.121. While Investments in DeFi have largely defied the prolonged bearish stance in the crypto space, the number of deals slowed to 22 from 30in 1.2022 and 33 in Q2 2021. Fund managers focused on DeFi are equipped with capital raised during the crypto bull run in 2021. Our data identified atleast six Singapore-based funds that reached a final close last year, with ‘otal proceeds of $220 milion which is enough capital for deploymentin the next 2-3, years. These are on top of mega funds raised by US firms such as Paradigm and Andreessen Horowitz, which have closed $25 billion and $2.2 billion vehicles, respectively. With the ‘ongoing valuation adjustments, early-stage investments into DeFi startups will continue briskly Fintech lending is back. Fintech lending. followed e-payments asthe third most popular fintech category with six deals and $36 million in total value, Although battered Printed by But Thanh 70 Email contactetnnkzone vn by the impact of COVID-19 pandemic, the fintech lending sector has seen arevival of, activities in recent quarters. ‘hiss partly related to the digital banking ‘evolution in Indonesia, our study shows, Local bbanks are tapping the resources of fintech lending firms in their digital transformation Journey, with some committing fresh capital through their investment arms. In turn, several fintech lending firms have also invested in ‘small Indonesian banks in order to.create synergies. Asof last month, 13 digital-first bbanks in. Indonesia are backed by tech startups, of which six are fintech lending firms. Healthy deal flow. Investments in e-commerce may not be as exciting as itech inrecent quarters due to the absence of major funding deals, but the sector continues to ‘churn a steady deal flow. The biggest trend has been the emergence of quick commerce startups that deliver groceries, Online grocery ntstartups made up five out of 10B2C ‘commerce deals recorded in the second, ‘quarter [221]. Led by the $60 milion funding inIndonesian quick commerce startup Astro, the B2C category generated $111 milion, or nearly one-fifth of total e-commerce deal value in the second quarter. Itremains tobe seen, however, if the quick commerce model can generate healthy unit economies, fund ‘managers told DealStreetAsia, Overall, e-commerce accounted for 39 dealsin the second quarter. This compares to 43 and 30 deals in Qt 2022 and Q2 2021, respectively ‘Sustained healthtech appetite. Biofourmis’s ‘$300 milion Series D funding in April pushed Southeast Asiashealthtech space to new heights. The provider of digital therapeutics and medical software became the first hhealthtech startup from the region that surpassed $1 billion in valuation. The funding was one of 11 healthtech deals clockedin the second quarter, which raised $483 million in total proceeds - the largest single quarter performance in our record. In terms of deal count, healthtech investments have largely levelled down this year relative to H2 2020 and H1 2021, when the region was still grappling with ahigh number of COVID-19 cases. Though at lower levels, the flow of healthtech deals has been largely stable in the last three quarters, suggesting a sustained investor appetite. GameFi flying high. Despite 2 $650 million hack of Ronin, the crypto wallet platform of play-to-earn monster pet game Axle Infinity, in March, investments in blockchain-powered games grew stronger in the second quarter [2231 Sixteen out of 24 funding deals for gaming-focused startups fll under the category of GameFi. The total gaming deal count was the highest in a single quarter, our data shows. Overall, gaming-focused startups collected $284 million in funding led by Axie’s publisher Sky Mavis, which raised a Printed by But Thanh 70 malt contactetnnkzone vn ‘$150 milion Series C from global erypto. ‘exchange Binance, private equity firm Accel and prolific DeFlinvestor Andreessen Horowitz, among others, Singapore-based ‘Web gaming platform Ikra clocked the second largest seed fundingin the second quarter at $345 million. Of the total proceeds raised in Q2 2022, nearly 80% were generated by GameFi startups. ‘Special terms. As the region's premier financial hub, Singapore remained flush with capital, The region has maintained a steady increase in total funding proceeds in the past three quarters. Total deal count dipped to 1134 from 151 inthe previous quarter, but ‘remained above 2021 levels [225]. Given the challenging economic environment and a stronger focus on business sustainability, some investors have introduced additional terms for funding. These include, for instance, ‘ademand for startups to achieve specific financial targets or being asked to allot ntmore shares to investors otherwise, Bigin Indonesia. Indonesiais traitionally known asa hotbed for e-commerce startups. This, however, is shifting due to a growing demand for fintech services. Ina complete shift from the trend in previous quarters, fintech startups took eight positions inthe list of top 10 largest Indonesian fundraisers in the second quarter. Led by B28 e-payment firm Xendit, which raised $300 million in Series D funding, Indonesian fntech startups raised ‘$868 milion, or more than half ofthe total funding received by the country's entire startup ecosystem during the perlod. In terms (of deal count, Indonesia saw 66 deals, whichis lower than 75 in the previous quarter, but ike Singapore, above 2021 levels. A different picture. With the pandemic tll ragingin Vietnam, the country has seen 2 steady decline in deal activities inthe last three quarters. €-commerce enabler OnPoint raised the largest funding with its $50 million Series B, bringing the total Q2 proceeds to $262 million, slightly up from the previous quarter, bt dramatically lower than $873 million inthe same period last year [2.23]. In Malaysia, the total deal count fell to-an {1-quarter low as startups struggled to reach traction [2:26], Similarly, Thailand recorded only six deals in Q2, the lowest level in four Quarters. The Philippine startup ecosystem had a reason to celebrate in the second ‘quarter as fintech services firm Voyager became the country’s second tech unicorn after Mynt (229). Insider insights. Fund managers that we interviewed for this report generally believe that although there has been acorrection in valuations and funding delays in the past six months, Southeast Asian startups have fared much better compared to the rest ofthe world. The current market environment, to some extent, is similar to 2020 when the Ema pandemic hist hit. The impacton early-stage companies will not be as severe, they sald Growth:stage startups are likely to face more scrutiny and pressure to improve monetization strategies and margins. In short, startups are being forced to achieve more with less, Indeed, many of these startups have taken measures such as reducing subsidies, improving financial management and even, cutting down workforce. For the reminder of the year fund managers still expect a slower, pace of investment and valuations normalisation, especially in the growth and later stage funding environment. Strong, dealmaking is expected at the early stage due to the startups’ perceived flexibility in dealing, with unfavorable market conditions, including innovel categories such as DeFi and GameFi that have been overshadowed by the ongoing crypto bear market. [2.31] ntal Overview Printed by But Thanh 70 malSoutheast Asia Deal activities begin to reflect global economic woes Equity vs debt funding in venture-backed startups Equity deal volume per quarter 0098 . 310 SB 8 oe) = 263. | fous "08 : 2 2 fen ase i ~~ dia wa kaa eee al Equity = Debt 2029 e071 --2022Southeast Asia Printed by But Thanh 70 malt eontactetnnkzone vn SG and ID companies generate 88% of deal value Equity funding volume & value by HQ in Q2 2022 2000 2500 $ Singapore (134; $2.601m) 2000 Indonesia (66:$1588m) 2 ® 3 ss00 1000 Malaysia oe rm) (10; $26m) Vietnam (20; $262) Philippines (13: $25ém) 00 Thaland (6; $36) ¢o Myanmar (1 $5) 0 one ° 50 100 150 Deal Volume Share of equity funding by HQ in Q2.2022 Thailand 0.7% Malaysia: Myanmar: 0.1% 06% philippines; 54% Vietnam: 55% 200 teSoutheast Asia Printed by But Thanh 70 malt eontactetnnkzone vn Lower deal count seen across Seed to Series C stages Equity deal volume & value by funding round in Q2 2022 Pre-series A Series Series At Preseries Series series Series series Series Unknown series Corporate round Private equity PERE Hout nw S08Ro Type com esr v 2 1.00 662 50 0 585 88 15 Deal volume by funding round Series A Series 8 Series C 9221 eqs21 watt wQi22 wa22 tePrinted by But Thanh 70 Southeast Asia malt eontactetnnkzone vn Seed valuation soars as investors compete for fresh catch Median value of equity funding by stage Average value of equity funding by stage $tom | s16m seed J $1.6m seed | $2.7m $3.0m 60m se2m siLam series A [I 578m Series A $23.5m se2m $182m $19.0 $267 series 8 25m series 8 ‘$0. $228 $288m $31.6 $98.1m series ——= seoom Series c $125.0m 700m $201.0 9220 mqz21_9q222 0220 mQn21 mQ22Printed by But Thanh 70 Southeast Asia: Top 20 equity deals in Q2 2022 eiceeen ame H om Stage westrs (nt exhaustv SG CodaPayments Fintech Series ‘GC. nsiaht Partners Smash Ventures 5G Blofourmi Hesttach series General Atlantic, CVS Health, Openspace Ventures. EDI 1D xen Fintech series CCoatve. Insight Partners, Accel, EV Growth, Tiger Global SG Envision Digital reentech series A Sequoia Capital China, GIC PH Voyaser innovations Fintecn Serie unknown S1G,£DB, Fis Pacite Company YN Sky Mavis Finteeh series Binance, Ace Andreesien Horovt, Arimoca Brands Binance SG Tessa Therapeutics Healetech Series A Polaris Partners, EDI, Helicnia Capital Herta Capital 1D Pinta Fintach series Intudo Ventures, Lightspeed Venture Partners, Northstar Group SG NesoBrands Retail Seed ‘Alpha Wave Global, KKR Japan SoftBank Temasek 1D Malan Ecommerce series DST Global Sequoia Capital, Northstar Group 1D Bivie Finteeh Series unknown IC. Prosus Ventures SG ShopBck Ecommerce seriesF ‘sia Partners Fund Management January Capital 1D super Finsech Series ¢ New Enterprise Associates, 8 Capital, DST Global, Amasia 1D Qoala Fintech series Eurazeo, RI Ventures, indogen Capita. Mandi Capital SG Trosing Soca Fintechlercing Series Sherpa 1D Aino tndonesia Fintech series Nippon Kosi TIS Japan 1D Astro Ecommerce series8 ‘Accel. Citus, Tiger Global Management. AC Ventures, cel 1D ExtaChain Fintacn Seri unknown “The Global Emerging Markets Group 56 AODK Fintech series Stock Exchange of Thailand 1D Flip Fintech Series ence Insight Partners tePrinted by But Thanh 70 mal pT a Bio Deal TrendspottingPrinted by But Thanh 70 Trendspotting radian Close to half of funding in Q2 went to fintech startups ‘Top 10 verticals by deal volume in Q2 2022 ‘Top 10 verticals by deal value in Q2 2022 Finch A 33 Fintech LE $2,189 Ecommerce ETI 39 E-commerce [MIENEEE $573m Gaming MERUNEEEM 24 Healthtech [ININIEE $483m Healthtech EMINEM 11 Gaming MIMI $284m tech NN 13 Green tech HI §229m software [NIM 10 Mia ent. HL $192m so MM Logics devery $122 Dita salts, AML 9 Software FH $135 Edtech [MME 9 F&B Ml $109m Logistics & delivery [NIN 8 Retail [ll $106m_ ntPrinted by But Thanh 70 Trendspotting mali coniact@thinkzone vn Fintech has largely been resilient amid changing climate Equity deal volume and value in fintech per quarter Share of fintech deal value by HQ in Q2 2022 s2asp Matyi: ‘Thailand; 0.1% 0.8%. _ Vietnam; 1.45% Pritipynes 112% 65 a2at a1 aan iz 222 s=Value Volume tA aeTrendspotting DeFi startups drive wealthtech investments Deal volume per fintech category in Q2 2022 Top 10 wealthtech equity deals in Q2 2022 Funding Type Value Weaithtech 32184110) pita =a a E-payment 19(61,365m) Bit Series unknown $80 — a extachan saries unknown $40m 00x series $58m Fintech services INI 4 ($278m) Finkay series s25m Insurtech IE 4 ($154m) Gotrade series A $15m ‘Accounting BN 3(617) Coinako Series unknown $10 CloudvallCapital Seed Tech solutions. ll 3 ($71) " Seal oct series sem Payroll soktions ff ($2 u ced) Pay series A $5m Printed by But Thanh 70 malt eontactetnnkzone vn Sa Cryptoeschange Mutual fund INFTplatform Alternative investment Mutual fund Stock trading Cryptoeschange 1528 DeFiservces Crypto staking platform Crypto exchangeTrendspotting Investor appetite for DeFi remains relatively strong Share of DeFivs TradFi in Q2 2022 DeFi deal volume and value per quarter Volume Value oe ae 102% Defi Tradfi or7% e90% DeFi deal volume and value in Q2 2022 Volume Value of NN 22 ber 1c TT ss ocr IN 9560 coat 32 aa ai 222 mmnValue -0-VolumeTrendspotting Printed by But Thanh 70 malt eontactetnnkzone vn Healthy flow of e-commerce deals in the second quarter Equity deal volume and value in e-commerce per quarter $1.7 9 $573 $320m a2at sat eat aiz2 222 s=Value -2-Volume Share of e-commerce deal value by HQin Q1 2022 Phitippines: Thailand; 4.1% Malaysia: 0.256 05% Vietnam; 9.1% ntPrinted by But Thanh 70 Trendspotting mal contatethinkzone vn Online grocery startups on a winning streak Deal volume per e-commerce category in Q1 2022 All B2C commerce deals in Q2 2022 Fim Fundingtype Value Category 82¢ commerce rogttim "a — ————— Be Det hat (832m) FreshKet Series B $23m_ Online grocery, 82C 6 C2C commerce 7(s165m) Noveship Series A $10m Fashion soci eommerce (624m) aaron Serle & $10m Online grocery 228 commerce a¢sotm) Lurgan Materia Seed San Constrtonmater ee Buiter Seed 2m Ontne grocery eee eee WHIPMebity seed Sim todas Desty seed Undicosed Content nrtetpace E-fulfillment_ 2($55m) rss Coupon & rewards on Tiki Corp. Round Undisclosed Online marketplace tAHealthtech sees steady flow of investments Equity deal volume and value in healthtech per quarter Alllhealthtech deals in Q2 2022 $483m E Category 7 Biofourmis series D $300m Diagnostic technology Tessa Therapeutin series A $126m Curative technology cy ‘Tetris Therapeutics seed $15m ——_Curativetechnoloey a1 Usa series A $15m Diagnostic technology ° amu series Stim Biotechnology $197m 185m Hannah Life Technologies PreSeriesA 5m Curative technology $135m Ordinary Fale seed $5m Telemedicine Ami seed $3m Telemedicine Heatheats Seed $3m Telemedicine Star Array CCorp.Round Undisclosed Diagnostic technology zat 321 gaat uz 222 RVAC Medicines SeriesB Undisclosed Curative technology smValue ~0-Volume tAPrinted by But Thanh 70 , conacigeze Trendspotting cs GameFi rules the gaming landscape Equity deal volume and alue in gaming per quarter Share of GameFivs non-GameF iin Q2 2022 Volume Vue scone ag oa = Non-GameFi om 79% Top 5 largest GameFi deals in Q2 2022 rem Fondnetipe Vale catesony Shy Mavi Series Silim Gamepsbisne tea see 80m Gane bin Polence seed $40m — caningsatern oat = _ ua Cd Chillehat Seed $58m Gaming platform Value —2-Volume Ethlas: ‘Seed $25m Game publishing.Printed by But Thanh 70 malPrinted by But Thanh 70 : aceon Singapore cs Homegrown startups fetch top dollars Equity deal volume and value for Singapore firms Top 10 deals in Q2 2022 7 151 ‘Coda Payments: Series C $690m —Fintech i Blom Series $200m —Heatntech od Envision Digital Series A $210m —Greentech 2000 s2250 Tessa Therpmutis ——SeriesA———_$26m —_Helhech mn $1928 Neso Brands Seed $100m Retail bas 68 ‘ShopBack Series F $80m E-commerce ones 22 ——-S0070 Trusngsocal === Seles «$65m_—_Fntchlending ry ADDX Series B ‘$58m —Fintech belie SeresA $55 Manutactring cue cao i cits qaat_ gaz cuat_aizz caa2 | eae cagortin sae 1354 Fee s=Value -0-Volume teIndonesia Printed by But Thanh 70 malt eontactetnnkzone vn Fintech dominates top 10 funding rounds Quarterly deal volume and value for Indonesian firms 5 $4558 5 59 55 By 24 1 foe ii i i 20 121 qazt l nat I 2222 s=Value -©-Volume $1598 $1408, i 398 i 988 Top 10 deals in Q2 2022 Fem FundingType Valu Vertical xenait series 300m Fintech Pintu Series $111m —Fintech Moladin Series 595m E-commerce sibitid Seriesunknown $80m —_Fintech super Series 70m Fintech Qoata Series $865m —_Fintech Aino indonesia Series B 60m Fintech Astro Series 60m E-commerce ExtaChain Seriesunknown $60m —_‘Fintech Flip Series 55m Fintech ntPrinted by But Thanh 70 malt eontactetnnkzone vn Vietnam Late COVID-19 contagion influences deal activities Quarterly deal volume and value for Vietnamese firms Top 10 deals in Q2 2022 os jg, $1005 COnpoint Ecommerce series $50m E-commerce Fey series $25m_—Fintech aucaCorpration Series som itech zo (Ba hch gett Sav s7m Logistics ancients seed sem Gaming Datsike = $5:m Mobi tech 282m 2200 s212m astin PreseresA $48 ——Fntech iE CorporateRound —$2m —_Proptech $16m emi seed $2m E-commerce came azo tao Qi2t Qu QAI OHI QI OR — EUG a ay s=Vahie -©-Volume ntMalaysia Printed by But Thanh 70 malt eontactetnnkzone vn Deal count drops to lowest in 11 quarters Quarterly deal volume and value for Malaysian firms 319m 8 10 stim oe | mn ca cad Qazo Qi2 cami amt ail aia Qua mevaue -©-Vohane Alll recorded deals in Q2 2022 Fem ne Vertical Gotrade series A $15m_—Fintech Naluriite PreeriesB © $7m_——-HRtech Payd seed $2m Fitch WHIP Mobility seed $im E-commerce cited Pre-Seed Sim Edtech Justag seed $ogm E-commerce KOUHUB seed 303m Marketingtech MyTEduTech Berhad Seed $oim — Edtech Oxgtomic Angel Undisclosed HR-tech Finory seed Undisclosed Fintech tANew unicorn Voyager drives deal value ‘Quarterly deal volume and value for Filipino firms Deals with announced value in Q2 2022 Firm eos a 407m Voyager innovations Unknownseries §210m —_Fintechservces Coins ph series 300m Fintech Lista Seed $5:am_—Fintech Seem pultasart Seed $20m E-commerce 13 ; — Kraver'sCanteen Series A $30m FSB $148 $145 a5 Playdlex seed $20m Gaming Madéats Seed $17m Food & beverages $78m Yefin seed $1.0m — Fintech Shipmates seed $0.5m Logistics & delivery @220 9320 420 Quai ari sx Qua Q122 gz s=Value -©-Volume ntDeal activities on a downward trajectory ‘Quarterly deal volume and value for Thai firms All recorded deals in Q2 2022 rt Ea ed val 222m Freshket Series 8 $232m E-commerce Cchillchat seed 65m Gaming ato series A $3.1m Finvech SalaryHero Seed $28m HR-tech Elumia seed 0.1m Gaming $901 Forward seed Undisclosed Fintech $5im I 336m 220 320 Q420 gia a2 Qazi iat Q122 a2 mmeValue -o-Volume ntPrinted by But Thanh 70 mal Sfet | Insider Insights AsiaPrinted by But Thanh 70 malt eontactetnnkzone vn Insider Insights We are seeing investors across the board taking a more cautious and prudent stance in the past 4 months. Priortsation has meaningfully shifted from aggressive growth, scale and acquiring market share, to proot of monetization and healthy acanomics, and for rare mature startups, sustainable and positive profits. Early stage startups are now shitting towards improving productmarket ft. The above mentioned shift in priorities and requirements for both founders and investors are reflected inthe number of decrease in deals done ae cheque size ‘written, especially inthe growrhvater stage. But we aso stronly note thatthe appetites and conviction on long-term potentials of SEA market stil remain very much intact. Indonesia has strong macro and demographic fundamentals, and startups who have the right business models wil stil succeed, eventhough with delayed timing. There are many smart funds both locally an gleblly who are wating forthe right moment to deploy their capital fr the best companies ad founders), at moe reasonable ‘valuation prices: Many of them see tis "winter" 3s. a healthy cocrection Eko Kurniadi Partner For the emsinder ofthe year stil expect the tomer pace of iwestment and valaton normalisation, especialy inthe Alpha JWC Ventures sroutvlater tage ning evionment-ost would want to wait and ee until these companies are able to prove thei thesis and fundamental. Thoush the sme cautious sentiment applies, we Would expecta aster recovery inthe ceary-stage funding. The "bar" would be higher, but | believe the numberof quality founders and startups coming into themarket wll aso continue to grow. ‘As exoectations re much higher nowin genera. Le. companies and founders should be able to achieve more with ess pital. We have been seeing some meaningful measures ken by companies in varius spaces, From the investors! pont of ies, we ate also seeing an increasing appetite towards sectors that are more resilient, meaning there isclear demand forts products! services regarless of macra condition, eg agriculture tech and models that have postive economics and cash generating capability since early days. eg, consumer retallor D2C,Printed by But Thanh 70 malt eontactetnnkzone vn Insider Insights ‘Compared to the rest of the world, Southeast Asia has fared much better during the first half of 2022. Ry We are seeing valuations come in for late-stage startups, while early-stage start-ups are adjusting and delaying their fundraising plans. With that sald, there has not been a dramatic liquidity crunch in Southeast Asia yet. The current environment reminds us of 2020. Strong founders are waiting for the \VC fundraising environment to strengthen before raising new capital While this downturn may be more prolonged, we see less impact on early-stage companies compared with 2020. Later stage companies are facing more investor scrutiny and pressure to improve ‘monetization strategies and margins. This has led to layoffs, freezing headcount, and abandoning new fe ‘markets and products (at the behest of their board and major shareholders). Managing Partners ‘There Is an opportunity for early-stage companies to "not let a good erisls go to waste” and to capture 1982 Ventures portunity for early-stage comps a e : market share, attract otherwise unattainable talent and emerge stronger. We have advised our early-stage portfolio tobe prudent but also to push harder. For the remainder of 2022, we expect many companies to consider raising smaller rounds at reasonable valuations to not sacrifice future growth. At least in the fintech space, there is still significant global investor interest as most of these companies are performing well from a business perspective and growing fast.Printed by But Thanh 70 malt eontactetnnkzone vn Insider Insights During the market peak last year, there were many new funds that managed to raise capital. This provided them with enough dry powder for deployment inthe following two to three years. With the market currently adjusting valuations, | think early-stage investments into DeFT startups will continue. During the recent market corrections, DeFi generally held up well while CeFl [centralised finance] suffered bankruptcies and failures. This development proves the value and resilience of DeFl. However, 'm concerned about DeFI products that have been mostly used for speculative leveraging during the bull market run. The recent deleveraging will help the ecosystem to be healthier inthe long. run, and to redirect development efforts towards new directions such as productive ending Genping Liu Partner Vertex Ventures SEA & India | generally think that we are seeing early signals [towards sustainable value creation]. DeFi lending protocols hold up well against Ce players in the recent crash shows the value of transparency and its resilience. New directions such a linking DeFi to real world asset lending also shows good traction,Disclaimer & Terms Of Use nal cotmerinnzone Al rights reserved. No part ofthis publication may be repraduced in any form ar by any means—graphic,electranc, or mechanical including photocopying, recording taping ad information storage and retrieval systems—without the express uritten permission of DeaStreetAsia Pte Lid Contents ofthis publication ae based en information from sources believed to be reliable, ut accuracy and compl ness cannot be quaranteed, This material doesnot purport to contain allo the information ands not toberlied upon as such or used in substitution for the exercise of independent judgement. COPYRIGHT © 2022.6y DealstretAsa Pte LtContact us Subscriptions Vincent Kan | vincent@dealstreetasiacom Sponsorships & Advertising Wilfred Wong | wilfred@dealstreetasiacam Marketing & Communications Margot Lai| margol@dealstrectas rer 7 Zn 9 Bt Poom Marina 86, i % ert shoes api £207 Cope Uta feet tat) Terme DealstreetAsia HQ Address: Capital Tower, #12-01, 168 Robinson Rd, Singapore 068912