Asia Startup Funding Held Near Record Levels in Q3 as AI Deals Dominated

Asia’s startup funding stayed near historic highs in the third quarter, powered largely by artificial intelligence deals even as investment slipped slightly from the previous quarter. Crunchbase data shows investors put $38.5 billion into reported seed- through growth-stage financings across the region in Q3, making it the second-highest quarterly total in years.

The funding picture was especially concentrated. Roughly 55% of the quarter’s investment, or an estimated $21 billion, went to AI-focused companies, while deal counts remained relatively flat. That combination suggests capital continued to flow toward a relatively small number of favored startups, rather than broadening across the market.

The quarter also reflected a sharp regional imbalance. China-based companies drew about $27 billion, or 70% of all Asian startup funding in Q3, far outpacing India and Singapore, which followed with much smaller totals. The report said the scale of China’s share was driven by a handful of large financings.

Jumbo AI rounds drove the quarter

Among the biggest deals was Moonshot AI, a Beijing-based foundational model company, which raised $3.5 billion in July at a reported $35 billion valuation. Kling AI, the generative video startup spun out of Kuaishou Technology, also helped lift the region’s totals with a roughly $3 billion financing that included Baidu and Tencent.

Late-stage rounds accounted for most of the money raised in the quarter, totaling about $20 billion. That was down slightly from Q2, but still nearly double the level of the same period a year earlier and the second-strongest showing in four years, according to the data.

Other sizable rounds included Shenzhen-based D-Robotics, which raised $400 million in a September Series C for robotics hardware and software, and Hong Kong-based Qupital, which secured $300 million in Series C funding as it pursues an eventual public listing. The report said early-stage investment also remained elevated, with Series A and Series B financings totaling $13.6 billion in the quarter.

Seed funding reached its highest level in years as well, totaling $4.9 billion across reported seed and angel deals in Asia. Crunchbase said that figure was up about 22% from Q2 and more than double year-ago levels, underscoring how investor enthusiasm around AI continued to reshape the region’s startup landscape.

The report is based on Crunchbase data as of Oct. 5, 2026. It comes as global venture markets continue to show a strong preference for AI-related companies, with Asia’s Q3 performance reinforcing how a small number of outsized financings can keep regional totals elevated even when broader deal activity is less dynamic.