While only a small percentage of VC-backed startup exits occur via IPO, Southeast Asian companies have been faring well globally according to a new report from Deloitte.
Venture capital firms make mental calculations on exit probability from the moment the very first check is written—typically as early as Seed Stage—and as the region propels forward in the years to come, numerous verticals are attractive to both local and international investors.
According to the report, “In the last six months, Southeast Asia’s market saw 85 IPOs raising $3.3 billion in proceeds, versus the 73 IPOs in the same period last year which raised $3.1 billion. That’s a 16% increase in the number of IPOs and a 5% increase in proceeds for the first half of 2023.”
So while none of us have a crystal ball, Southeast Asia’s middle class is growing quickly, e-commerce growth is expected to remain the strongest in the world, and a long-term focus by ASEAN governments on infrastructure spending and increased global trade all point to a bright future for startup exit opportunities, whether via acquisition or IPO.
