Key Takeaways
- • Capital JDI's Tommy Khuong argues that APAC venture capital remains over-indexed on front-end B2C platforms and generalized software, leaving a capital gap in B2B supply chain infrastructure, automated customs, and industrial automation.
- • ASEAN attracted US$243.9 billion in foreign direct investment in 2025, a 9.7% increase year on year, with manufacturing FDI reaching US$44 billion in 2024.
- • Southeast Asian logistics technology companies raised approximately US$339 million in equity funding between January and September 2026, on track for the sector's strongest year since 2021 but well below the US$1.1 billion raised in 2021.
- • Southeast Asian startups raised US$7.25 billion across 217 transactions in H1 2026, but excluding DayOne's US$4.5 billion round, funding fell 21% half-on-half to US$2.75 billion.
- • Industrial startups must demonstrate measurable returns, repeatable deployment without costly customization, and clear commercial demand to attract venture capital.
Summary
An investor argument published by AsiaTechDaily holds that venture capital is overlooking industrial technology in Southeast Asia. Tommy Khuong, Senior Investment Associate at Capital JDI, told AsiaTechDaily that the broader APAC venture market is over-indexed on front-end B2C platforms and hyper-generalized software wrappers. He pointed to B2B supply chain infrastructure, automated customs and cross-border trade logistics, export-compliance climate tech, and embedded factory automation powered by low-cost vision-AI as under-capitalized areas, particularly as manufacturing shifts to Southeast Asia under China+1 strategies.
The macro backdrop is supportive. ASEAN attracted US$243.9 billion in FDI in 2025, up 9.7%, and manufacturing FDI rose sharply to US$44 billion in 2024. The article notes, however, that industrial capacity investment does not automatically translate into startup funding for the technologies that support it.
Funding data presents a mixed picture. Logistics technology companies raised approximately US$339 million in equity between January and September 2026, which would be the sector's strongest year since 2021 but remains below the US$1.1 billion raised in 2021. Capital is concentrated in Singapore and Jakarta. Robotics funding shows similar concentration, with Singapore accounting for most cumulative regional funding. Across the broader startup ecosystem, Southeast Asian startups raised US$7.25 billion across 217 transactions in H1 2026, but DayOne's US$4.5 billion round drove much of that total. Excluding it, funding was US$2.75 billion, down 21% from the prior half, and transaction count fell 7%.
The article identifies structural reasons industrial startups are harder to finance. Enterprise procurement involves lengthy sales cycles, pilots, equipment integration, and testing, and a solution that works in one factory often requires significant adaptation for another. Investors must assess whether a company can move beyond customized projects to a repeatable product at sustainable margins. Startups must show measurable returns, such as lower costs or higher output, repeatable deployment across customers, and paying customers with recurring problems and budgets.
The article stops short of concluding that industrial technology is neglected. It notes that logistics funding has recovered, robotics is attracting capital, and manufacturers do not necessarily need venture-backed solutions for every operational challenge. The central question is whether startups can build defensible technology, repeatable deployment models, and credible revenue paths that turn manufacturing growth into venture-scale outcomes.
The macro backdrop is supportive. ASEAN attracted US$243.9 billion in FDI in 2025, up 9.7%, and manufacturing FDI rose sharply to US$44 billion in 2024. The article notes, however, that industrial capacity investment does not automatically translate into startup funding for the technologies that support it.
Funding data presents a mixed picture. Logistics technology companies raised approximately US$339 million in equity between January and September 2026, which would be the sector's strongest year since 2021 but remains below the US$1.1 billion raised in 2021. Capital is concentrated in Singapore and Jakarta. Robotics funding shows similar concentration, with Singapore accounting for most cumulative regional funding. Across the broader startup ecosystem, Southeast Asian startups raised US$7.25 billion across 217 transactions in H1 2026, but DayOne's US$4.5 billion round drove much of that total. Excluding it, funding was US$2.75 billion, down 21% from the prior half, and transaction count fell 7%.
The article identifies structural reasons industrial startups are harder to finance. Enterprise procurement involves lengthy sales cycles, pilots, equipment integration, and testing, and a solution that works in one factory often requires significant adaptation for another. Investors must assess whether a company can move beyond customized projects to a repeatable product at sustainable margins. Startups must show measurable returns, such as lower costs or higher output, repeatable deployment across customers, and paying customers with recurring problems and budgets.
The article stops short of concluding that industrial technology is neglected. It notes that logistics funding has recovered, robotics is attracting capital, and manufacturers do not necessarily need venture-backed solutions for every operational challenge. The central question is whether startups can build defensible technology, repeatable deployment models, and credible revenue paths that turn manufacturing growth into venture-scale outcomes.
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