The Financing Ecosystem of Startups in Southeast Asia: A Review of the Role and Challenges of Venture Capital and Private Equity

Abstract

Under the complex background of globalization and regional integration, Southeast Asia is expected to become a new growth pole of the global economy with its unique geographical location, rich natural resources and increasingly perfect infrastructure. Over the past decade, Southeast Asia has seen a significant increase in venture capital and private equity investment activity. This article reviews the startup financing ecosystem in Southeast Asia and analyzes the role and challenges of venture capital and private equity in the ecosystem. Capital inflows have both boosted regional economic growth and exposed key issues such as regulatory barriers, market fragmentation, overvaluation and capital imbalances. This paper comprehensively summarizes the growth drivers of venture capital and private equity, analyzes their long-term impact on regional economic development, and puts forward strategic suggestions to promote the balanced and sustainable growth of regional economy.