Tech funding dives 58% in Q2 as early-stage deals dry up

Late-stage firms captured almost all of the funding in the quarter.

Hong Kong tech startups raised $125m in the second quarter (Q2) of the year, down 57.91% from $298m in Q1, according to Tracxn data.

Funding, however, was up 294.31% year-on-year from $31.8m in Q2 2025.

Late-stage deals accounted for nearly all funding during the quarter, making up 99% of the total. Seed-stage funding accounted for the remaining 1%.

Botinkit recorded the largest deal of the quarter at $50m, followed by SignalPlus with $40m and August Robotics with $30m.

Meanwhile, the city recorded two acquisitions and no initial public offerings (IPO) during the quarter. 

This compares with one IPO and three acquisitions in the previous quarter, and one public offering and one acquisition in the same quarter last year.

No unicorns emerged in Q2.

Tracxn said the second-quarter figures only cover equity funding rounds and technology companies. The quarter is considered from 1 April to 31 May 2026.