Overall deal value and volume remained low during Q2’19 in Asia, well off last year’s record pace. The sluggish performance reflects the continued absence of significant numbers of $100 million+ megadeals in China for the second consecutive quarter.

The continued slowdown in deal making in China likely reflects the ongoing US-China trade dispute and a corresponding increase in investors caution.

Trends to watch for in Asia

Looking forward to Q3’19, edtech and online food and food delivery will be sectors to watch in India. For example, CloudKitchens, founded by former Uber CEO Travis Kalanick, enables delivery-only restaurants to set up kitchens and avoid the expense and associated risks of bricks-and-mortar outlets. These types of solutions are expected to see increasing investment in India.

With little sign that the China-US trade dispute will be resolved, VC investment in China could continue to be sluggish, although AI, healthtech and other high priority sectors will likely buck any negative trends.

Venture financing in Asia
Nitish Poddar quote
Asia in Q2