“Startup valuations in South-east Asia are beginning to soften as the industry comes to terms with the economic impact of Covid-19, venture capital (VC) investors told The Business Times. But VCs aren’t in a hurry to go bargain-hunting, as they keep a close watch on fundamentals while sourcing for deals.
According to private market intelligence firm Preqin, there were US$2.7 billion worth of venture capital deals in South-east Asia in the first quarter of 2020, down 20.6 per cent from a year ago. The number of deals in Q1 this year stood at 105, marking the lowest Q1 deal count since 2015.
Heang Chhor, managing partner of venture firm Qualgro, sees “a beginning trend towards declining valuations”, amid the current economic slowdown. This downward pressure could grow as more startups start to seek fresh capital, he said.”