The number of unicorns in the Asia-Pacific grew by more than 25% to 450 last year, as the region attracted nearly a third of global private investment. Venture capitalists (VCs) are also interested in companies looking to enhance traditional manufacturing processes as well as from various technology sectors, including semiconductors and energy vehicles. new.
Asia Pacific brought in US$193 billion in private investment across 12,119 transactions, according to a report released by KPMG and HSBC on Monday. This represents more than a quarter of the $670 billion global figure and is up 67% year-over-year.
The report assesses 6,472 tech startups valued at up to $500 million in 12 markets, including Mainland China, India, and Australia; Singapore, Korea; Hong Kong and Indonesia. KPMG and HSBC also listed what they consider to be the top 100 “emerging giants” in the region, seeing China and India dominate. About 33% of the companies on the list are from China, while 30% are from India and 13% from Japan.
Some of the reasons for the cuts are from key areas such as fintech, artificial intelligence (AI) and machine learning, e-commerce, health technology and supply chains.
However, the region is also seeing investments in new verticals beyond traditional new economy businesses such as fintech and software as a service (SaaS). The report identifies technology sub-sectors including blockchainsmart cities, as well as sustainability and ESG (environment, society and governance) are gaining prominence.
The blockchain-related categories of non-fungible tokens (NFTs) and decentralized finance are the most commonly linked sub-sectors, with more than 25% on the list of emerging giants. are from these verticals. Blockchain real estate and decentralized autonomous organizations are also among the top 20 sub-sectors, which the report argues is the current focus in Asia-Pacific on digital assets, the metaverse and Web 3.0 technology.
The diverse mix of markets is a key attribute of the region’s ability to attract investor attention, as well as its digital infrastructure and ecosystem.
Egidio Zarrella, KPMG China innovation and customer partner, said: “Across Asia-Pacific, VC investors are showing high interest in companies that are working to improve improve traditional production processes or provide B2B SaaS services (business-to-business). “There is growing interest in the number of different technology-focused areas, including new energy vehicles, semiconductors, and hardware-related technologies.”
In the coming year, robotics and automation will transform factories, where blockchain and tracking technology will facilitate efficiency and transparency. And while consumer-facing and fintech companies will continue to attract the largest share of investment, as the market matures, investor attention will shift to value-adding B2B startups. in markets such as education, healthcare and clean technology.
Pointing to Asia-Pacific as the engine of growth, the report also notes that the region’s mobile subscriber base is expected to reach 3 billion by 2025, and the middle class population is projected to reach 3 billion by 2025. is expected to reach 1 billion by 2030.
Its growing on mobile devices will fuel digital platforms and superappsdriving consumption of related services including mobile payments, e-commerce, games and fintech.
And as the region works to tackle climate change, there will be opportunities for businesses to provide the ability to monitor and analyze carbon emissions, and implement and operate renewable energy systems. smart and deploy green finance tools.
Honson To, President of KPMG Asia-Pacific and KPMG China, said: “Looking ahead, the global push towards carbon neutrality will be a key driver of innovation as the transmission sectors move forward. systems go green and emerging giants are likely to play an important role in developing technologies that can reduce carbon emissions and promote more responsible environmental management. critical battlefield in the fight for a more sustainable future.”
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