Rakuten Capital expresses pessimism over Southeast Asian venture capital prospects

Saemin Ahn, who leads international investments for Rakuten Capital, stated pessimism regarding venture capital investment prospects in Southeast Asia. Ahn argued that the way firms scale and succeed in the region has a different velocity curve than the U.S., making it incompatible with venture capital models. In the first nine months of 2026, only $10.7 billion flowed into the region.

The report highlights a significant slowdown in regional funding, noting that the $10.7 billion inflow represents just over 1% of the total $679 billion. This pessimism follows a period where Southeast Asian digital companies, including Grab, received large funding rounds from investors like Baillie Gifford.