Forty-six percent of VCs surveyed by Preqin in Q1 2023 were looking to invest in the Asia-Pacific (APAC) region, up from 32% from the same time last year. Preqin's Alternatives in APAC 2023 report suggests that the APAC region has overtaken North America as the most active region for VC. APAC region's funds with vintages between 2011 and 2020 had a median internal rate of return (IRR) of 24.6%, slightly above North America's 22.5% IRR. - In September last year, APAC's VC assets under management totaled $1.21T, surpassing North America's tally of $1.04T.
- The recent interest in APAC is driven by investment opportunities across China, India, and Southeast Asia.
- China raked in 52% of the deals within the APAC region between 2018 and 2023.
- Despite the rise in deal values, the figure still pales in comparison to Europe and North America.
- Seed rounds averaged $2.3M in the APAC region between 2020 and 2022, much lower than Europe's $3.8M and North America's $5.0M.
- The gap was also seen in late-stage rounds, with average deal sizes in APAC, Europe, and North America coming in at $53.9M, $84.2M, and $72.6M, respectively.
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