Startup funding in Asia increased in the first quarter of this year, driven by a recovery in venture capital investment in China. In Q1 2026, funding flowing into startups in the country reached US$16.5 billion, or approximately Rp283 trillion.

According to Crunchbase data, total startup funding in Asia amounted to US$27.4 billion during the first quarter. This figure rose by around 20% compared to the previous quarter and nearly doubled from the same period last year.

Of the total, about 60% of the funding was directed to China-based startups. This marks the third consecutive quarter of growth in venture capital funding for the country following a downturn in the first half of 2025.

The surge in investment in China was largely driven by the artificial intelligence (AI) sector. The largest funding rounds were all directed toward AI companies, including foundation model developer StepFun, agentic AI firm Moonshot AI, and AI robotics developer Galaxy Bot.

After China, India became the second-largest recipient of venture funding in Asia, with investments totaling US$3.8 billion in Q1, the highest level in the past four quarters. A significant portion of this came from the largest funding round of the quarter, a US$600 million investment in AI system developer Neysa.

Based on Crunchbase data, startup funding across Asia increased at all stages, from seed to late-stage funding. Late-stage funding accounted for the largest share at US$11.7 billion, including a US$2 billion Series C round for Singapore-based data center company DayOne.

Meanwhile, early-stage funding reached US$11.2 billion, nearly doubling compared to last year. Seed funding, on the other hand, totaled US$3.6 billion, up 85% year-on-year, with AI acting as the main growth driver.

From a sectoral perspective, AI startups emerged as the biggest winners. Throughout the first quarter, AI companies in Asia raised approximately US$11.2 billion, the highest amount recorded by Crunchbase.

Overall, the quarterly figures indicate strengthening momentum in China’s startup ecosystem, which has contributed to the overall increase in funding across Asia. Investments in startups in India, Singapore, and South Korea also rose, while funding in Israel saw a slight decline.

In general, this quarter is considered solid and reflects growing optimism for the future pipeline of startups across the Asian region.