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Venture capital funding in Asia dropped by 31% compared to the record-setting numbers of 2021, from $102 billion to $70 billion. As elsewhere, global events have taken their toll on the economy, but in parts of Asia, rigid COVID-19 restrictions, climate change, and aging populations are further exacerbating economic challenges. That said, Asia was the least impacted global region in terms of early-stage funding amount, dropping just a single percentage point from 2021 to 2022. Its early-stage funding deal count was also largely stable, showing just a 4.9% decrease in the same period. Later-stage funding was more impacted, with the region’s Series B+ amount decreasing 39% from 2021 to 2022, and Series B+ deal count 13%.

India had relatively relaxed COVID-19 policies, which helped the nation continue its rapid growth. Policies including the Startup India initiative further catalyze the startup scene. However, even India is experiencing a slowdown. In 2022, it produced 24 new unicorns, a 33% decline from 2021’s 26. The Series B+ deal count dropped by 17% from 2021 to 2022, and Series B+ amount declined 46% for the same period. Although the amount of early-stage funding increased 19% from 2021 to 2022, the count of early-stage deals dropped by 6%. 

The GSER 2022 outlined the decline of China’s dominance and the growth of India. This trend continues, with Beijing and Shanghai both declining in the rankings (down two places and one respectively) and Bengaluru-Karnataka, Delhi, and Mumbai each moving up (up two places, two places, and five respectively). In 2021, China introduced firm regulations including restrictions on Edtech, antitrust rules, and data protection, impacting the tech sector in a nation still under strict COVID-19 policies. However, more recently, the government has both slowed down its regulation of technology and eased its COVID-19 restrictions. In late 2022, it committed to promote further stability and improvement of the economy.

Key Findings

• Seven Asian ecosystems are in the top 30 ranking, with a further three in the runners-up.
• Singapore has jumped 10 places in the ranking to #8, the second-highest ranked Asian ecosystem after Beijing. A 100% increase in exits over $50 million since the GSER 2022 helped boost its placement, and exits over $1 billion have risen from 0 to 4. Delivery app Grab is the highest valued at $40 billion. Singapore now boasts 18 unicorns, including cryptocurrency exchange KuCoin, which is valued at $10 billion.
  
• Two Chinese cities feature in the top 30 — Beijing and Shanghai at #7 and #9 — and two in the runners-up — Shenzhen and Hangzhou at #35 and #38. However, three of these four declined from last year's rankings, including leading Asian ecosystem Beijing, which dropped two places, and tech hub Shenzhen, which fell 12 places.
  
• India has two cities in the top 30 and one in the runners-up, all moving up at least two places. Bengaluru-Karnataka, the highest-ranked ecosystem at #20, rose two places and shares its position with Sydney. This success is largely due to a 57% increase in exits over $50 million and a significant growth in unicorns, from 21 to 36. Delhi rose two places to #24, while Mumbai climbed five places to tie with Salt Lake-Provo at #31.
  
• Despite Seoul's slight drop of two places from last year, it still ranks high at #12 and experienced a significant increase in unicorns, from 9 to 17.
  
• Tokyo, the only Japanese ecosystem in the top 30 and runners-up, sits at #15, down from last year's #12 mainly due to the quicker growth of other ecosystems.