Startup funding falls to $1.1m in May: report

This represents a steep decline of 96.22% compared to April 2025.

Startup funding activity in Hong Kong plunged in May, with total equity funding reaching just $1.1m, according to data from Tracxn.

This represents a steep decline of 96.22% compared to April 2025, when startups raised $29.1m, and a 98.41% drop from May 2024’s $69.2m.

The May 2025 funding was entirely concentrated in the seed stage, with no reported early- or late-stage funding rounds. In contrast, both seed and early-stage deals were active in prior months.

The largest disclosed deal for the month was Neufast’s $1.1m raise, whilst another deal by Sailglobal did not disclose the funding amount.

Investors participating in May included Wavemaker Partners and Wings Capital Ventures, each closing one venture capital deal, whilst incubators SOSV and Orbit Startups also completed one deal each.

In terms of exits, Tracxn reported no IPOs or acquisitions in May 2025, compared to two IPOs and one acquisition in May 2024. No new unicorns were created during the period.

The latest data also reflects a year-long downtrend in Hong Kong’s startup funding. After peaking at $189.5m in December 2024, monthly funding has steadily declined to $40m in March 2025, $29.1m in April, and now $1.1m in May.