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Laxman Pai, Opalesque Asia:

VC investment in Asia fell from $25.5 billion in Q4'22 to just $13.5 billion in Q1'23-the lowest quarter of VC investment seen in the region since Q2'15.

According to KPMG Private Enterprise's Venture Pulse report the quarter was challenging from multiple angles, as several factors combined to stifle VC investment across the region.

In China, a surging COVID-19 wave hindered VC activity in advance of its New Year holidays, while Hong Kong felt the impact of rising interest rates and a slowdown in IPO activity, and India saw investors becoming pickier with their investments. Only Japan saw increasing investment in Q1'23, although the total remained far below Q1'22.

VC investment in alternative energy and electric vehicles remained very robust across Asia in Q1'23, with China and Hong Kong accounting for the largest deals in the space, including a $750 million raise by EV vehicle manufacturer Zeekr, a $445 million raise by AI company PhonePe, a $442 million raise by solar energy technology company SolarSpace, a $400 million raise by fossil fuels decarbonization company EcoCeres, and a $290 million raise by United Aircraft.

VC investment in China was the particularly hard hit this quarter as the country battled a major COVID-19 wave in the wake of its autumn reopening, although VC activity picked up somewhat in the second half of the quarter once the wave diminished. VC investment during Q1'23 totaled only $7.4 billion-less than ha......................

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