Asia's Founders Abandon Ship for the US as Venture Funding Slump Continues

As Asia's tech landscape continues to struggle, a growing number of founders are abandoning their startups in the region and decamping to the United States in search of more favorable markets and access to capital. According to recent data, the US has attracted a staggering 68% of all startup funding last year, while Asia only managed a paltry 12% – a trend that is only expected to worsen in the coming months.

Background & Context

Asia was once a hotbed of innovation, with cities like Singapore, Tokyo, and Kuala Lumpur vying to become the next big tech hub. The region's underpenetrated markets, lower costs, and rising wealth made it an attractive destination for entrepreneurs looking to build and scale their businesses. However, in recent years, the region has struggled to keep pace with the US, where access to capital and a massive market have made it an attractive destination for startups.

The US has long been the preferred destination for startups, with its massive market, easy access to capital, and highly developed ecosystem making it an ideal place to build and scale a business. However, in recent years, Asia has been gaining ground, with cities like Singapore and Tokyo establishing themselves as major tech hubs. However, despite the region's efforts, the US remains the go-to destination for startups, and it seems that trend is only going to continue.

Key Details

According to Jussi Salovaara, co-founder and managing partner of global venture capital firm Antler, most of the founders they see in Asia today want to build global businesses, and the US is the most attractive destination for that purpose. "Customers, talent, and capital are all found in abundance there," he said in an interview.

Salovaara's firm has helped more than 30 Asian founding teams relocate to the US since 2025, and he expects that number to continue growing in the coming months. "The US has a massive market, and access to capital is easy," he said. "It's the perfect place to build a global business."

According to recent data, the US has attracted a staggering 68% of all startup funding last year, while Asia only managed a paltry 12%. The difference is even starker in the first quarter of 2026, with the US winning 80% of all startup funding, due to massive fundraising rounds for developers like OpenAI and Anthropic. Asia's share dropped to 9.6% over the same period.

But it's not just the US that's attracting Asian founders – it's also the regulatory environment in Asia that's pushing them to leave. Regulatory scrutiny and fragmented markets in Asia have made it increasingly difficult for startups to operate, and many are finding it easier to set up shop in the US.

What Experts Say

According to Salovaara, the lack of lucrative exit opportunities for investors is also a major factor in the decline of Asia's venture capital space. "There's been some large IPOs in Southeast Asia, but not as many as the ecosystem needed," he said. "That's definitely impacting investor confidence."

Salovaara's comments are echoed by other experts in the field, who point to the region's lack of venture capital as a major factor in its decline. "The US has a highly developed ecosystem, with easy access to capital and a massive market," said one expert. "Asia just can't compete with that."

Key Takeaways

• The US has attracted 68% of all startup funding last year, while Asia only managed 12%.
• More than 30 Asian founding teams have relocated to the US since 2025, with many more expected to follow.
• The regulatory environment in Asia is increasingly difficult for startups, with fragmented markets and regulatory scrutiny pushing many to leave.
• The lack of lucrative exit opportunities for investors is also a major factor in the decline of Asia's venture capital space.

What This Means For You

For everyday readers, the decline of Asia's venture capital space and the exodus of founders to the US has significant implications. As startups continue to struggle to find funding in the region, it's likely that many will be forced to scale back their operations or even shut down altogether. This could have a major impact on the region's economy, with many jobs and businesses at risk.

However, it's not all doom and gloom. For those looking to start or invest in a startup, the US remains an attractive destination, with easy access to capital and a massive market. And for those looking to invest in Asia, there are still opportunities to be found – albeit smaller and more fragmented than in the US.

In conclusion, the decline of Asia's venture capital space and the exodus of founders to the US is a trend that is only expected to worsen in the coming months. While it's a major blow to the region's economy, it also presents opportunities for those looking to start or invest in a startup – albeit in a more limited and fragmented market.