At the same time, new sectors are emerging, especially in education and health technology.
At the peak of the pandemic, leading health apps were being used four times as much as they were before the pandemic and education technology app installations had increased three-fold.
Greater focus for businesses, cautious optimism for investors
Global uncertainty means Southeast Asia’s major technology companies are focusing on strengthening their business and becoming profitable, rather than on expanding into new areas. Funding for companies valued at more than $1 billion has dropped from $5.6 billion in 2019 to an estimated $3.5 billion in 2020.
Overall, investors are cautiously optimistic. The number of deals has kept growing and we’re starting to see investors look towards new areas of opportunity in financial services, education and healthcare. For startups with strong ideas and business plans, there’s an available pool of capital worth almost $12 billion.