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Asia startup funding hits a three-year high led by China and AI
Venture funding in Asia reached $42.8 billion in the second quarter of 2026, driven largely by artificial intelligence.
Asia startups raised $42.8 billion in the second quarter of 2026, marking the highest quarterly total in more than three years. This surge was primarily driven by activity in China and a heavy concentration of capital in artificial intelligence.
China-based startups pulled in roughly $30 billion, representing a 424 percent increase year-over-year and a 76 percent rise from the previous quarter. Across the region, artificial intelligence startups captured more than 60 percent of all venture funding, taking in about $26 billion during the quarter.
Even as total dollars soared, deal counts hit a multiyear low. This indicates that investors are focusing on picking winners rather than spreading their bets across a larger number of companies.
Three major names dominated the funding rounds. DeepSeek led the quarter with a $7.4 billion raise at a $50 billion valuation, while StepFun and DayOne each secured $2.5 billion.
