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GlobalData plc

11/25/2020 | Press release | Distributed by Public on 11/25/2020 04:45

Early-stage funding rounds dominate VC investment landscape in APAC during Q3 2020, reveals GlobalData

25 Nov 2020
Early-stage funding rounds dominate VC investment landscape in APAC during Q3 2020, reveals GlobalData

Posted in Business Fundamentals

Despite volatile market conditions, venture capital (VC) investors seem to continue placing bets on promising start-ups as the COVID-19 pandemic has dramatically accelerated the rate of digital adoption by companies across sectors. Against this backdrop, early-stage funding rounds (Seed and Series A) dominated the venture capital (VC) funding landscape during the third quarter (Q3) of 2020 in the Asia-Pacific (APAC) region, according to GlobalData, a leading data and analytics company.

The number of deals with disclosed funding rounds decreased by 9% from 387 in July to 352 in August before bouncing back by 30.4% to 459 deals in September. In total, 278 Seed and 527 Series A funding rounds were announced during Q3 2020, which collectively accounted for 67.2% of the total deal volume.

In contrast, growth/expansion/late stage funding rounds (Series B, Series C, Series D, Series E and Series F) were much less in number compared to the early-stage funding rounds and collectively accounted for just a little more than 30% of the total deal volume.

Aurojyoti Bose, Lead Analyst at GlobalData, says: 'While the dominance of early-stage funding rounds may look like a no-concern scenario for start-ups, VC investors seem to remain extra cautious while placing big bets during the COVID-19 times. Only five Series A funding rounds had deal size more than or equal to US$100m and only two Seed funding rounds had deal size more than or equal to US$10m.'

While most of the funding rounds' share as a proportion of total deal volume kept fluctuating during the three months of Q3, Series B was the only funding round that witnessed consistent growth in share. The share of Series B funding rounds increased from 16.3% in July to 17% in August and 18.7% in September.