Southeast Asia’s AI start-ups attract over US$2.3B in private funding, led by Singapore’s 495 start-ups

SINGAPORE: Southeast Asia’s over 680 artificial intelligence (AI) start-ups in Southeast Asia have drawn US$2.3 billion (S$3 billion) in investments as of the first half of 2025, led by 495 Singapore-based start-ups that secured US$1.31 billion in private AI funding, according to the latest report by Google, Temasek Holdings and Bain & Company.

In Temasek’s press release, Florian Hoppe, a partner at Bain, said, “Singapore continues to anchor Southeast Asia’s digital economy. Its early momentum in scaling AI capabilities can unlock a broader regional opportunity to turn transformation into lasting economic value and build into another decade of growth. Importantly, it can also play a key role in unlocking funding and the exit environment for the region.”

According to the South China Morning Post (SCMP), Mr Hoppe told This Week in Asia, he expected the growth to continue, as the city-state was “easy to access.”

“It’s an East-meets-West place for many people, so we’d expect it to continue as an easy funding hub,” he added.

AI start-ups accounted for 32% of private funding in the region in H1 2025, up from 30% in H2 2024, according to the report.

Still, while private funding for the region’s digital economy rose 15% to US$7.7 billion in the 12 months to June, it remained roughly 70% below the record US$27 billion in 2021 and trailed the 25% global growth rate for private equity and venture capital investments.

Investors expect funding to grow the most in Singapore over the next five years, followed by Vietnam and Malaysia, with software and services, as well as AI and deep tech, drawing the highest investments. /TISG

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