Asia’s best-known startups are trading 40% cheaper than six months ago in private transactions amid a defeat triggered by headwinds from Chinese regulation and a global economic slowdown.
The multibillion-dollar companies affected range from financial technology and e-commerce to mobility and the consumer, according to AJ Patel, a senior member of the second venture capital team at Toronto-based advisory firm Setter Capital.
“For some of the unicorns, we’re seeing very limited demand,” Patel said. Additionally bid offers are 25% to 50% lower compared to the companies’ latest fundraising valuations. He declined to reveal names.
The region accounted for 28% of the 1,170 private companies valued at more than $1 billion, according to CB Insights’ global list of unicorns. China is home to 174 unicorns alone, making it the largest base for such startups after the United States.
ByteDance’s valuation fell at least 25% to well below $300 billion, people familiar with the matter said last month. Shein’s buyers are evaluating deals 30% cheaper than its $100 billion valuation in April, people familiar with the matter said. The third quarter may see further declines.
Stay Tuned with Us: