Funding tap turned on
Venture capital industry in Southeast Asia ready to move to the next level.
- 2 Jan 2017 at 14:00
- WRITER: PATHOM SANGWONGWANICH
The venture capital industry in Southeast Asia is moving toward a vital transition as "exit activity" among US venture capital funds in regional startups increases, according to Expara, which provides investment and services to the startup field.
In 2012, US$50 million worth of exit activities were recorded, increasing to $400 million in 2013 and $1.2 billion in 2014 before easing back to $800 million last year.
Exit activity refers to the process when venture capital investors sell all or most of their equity stakes, which is called trade sale, in a startup to larger corporations in the same or related industry. The term also denotes how investors choose to list their shares in an initial public offering on a stock exchange.