There’s more to SE Asia’s VC standstill than just unrealised returns

There’s more to SE Asia’s VC standstill than just unrealised returns

Media mention | 18 November 2025

Southeast Asia’s venture capital market is under pressure. After years of rapid growth and unicorn headlines, the region now faces a liquidity crunch and more cautious investors. What does this mean for startups and VC fund managers

Thomas Kim shared some thoughts with DealStreetAsia on the growing pressure on Southeast Asia’s VC funds to deliver real cash returns (DPI) and how their performance will determine the ecosystem’s credibility globally.

Three key takeaways from the latest DealStreetAsia analysis:

- Liquidity crunch is reshaping the market with GP-led continuation vehicles on the rise

- Regional VCs are adapting by diversifying into private credit and venture debt

- The next market cycle will see VC funds move away from a pure regional SE Asia play towards more thematic and sector-focused strategies.