# Saemin Ahn Questions Southeast Asia’s Venture Capital Model Rakuten Capital leader argues regional startups struggle to secure necessary growth oxygen. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-10-30 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ba32957c-5d1f-40f9-8d57-786cbac28f36 ## Regional Funding Slump Persists Southeast Asia faces a prolonged venture funding downturn, with only 10.7 billion dollars invested in the first nine months of the year. This figure represents just over one percent of the 679 billion dollars in global venture capital. Despite this being a recovery from last year, the region struggles to attract significant capital. ## Velocity Mismatch in Markets Saemin Ahn suggests the traditional venture capital model is incompatible with Southeast Asia due to different velocity curves. Unlike the U.S. market, startups here often fail to deliver the stellar results required to secure follow-on funding. Consequently, many promising entrepreneurs are assimilating into corporate ecosystems or migrating to more developed markets. ## Capital Efficiency Challenges Data indicates that outcomes in Southeast Asia are significantly less capital-efficient compared to markets like China. Startups in the region generate only half the value per dollar invested. Ahn believes that to succeed, venture capitalists must move beyond equity and incorporate mezzanine financing, debt, and credit to help companies grow more productively. ## Shift in Investment Strategy Rakuten Capital has shifted its geographic focus toward North Asia, the U.S., and parts of Europe. While the firm previously backed regional players like GoTo and ShopBack, it now prioritizes global investments. The team manages over 90 companies, aligning closely with Rakuten Group’s core priorities in e-commerce, fintech, and digital services. ## Infrastructure and AI Bets While global capital pours into massive AI data centers, Ahn advocates for smaller compute clusters. He points to modular solutions like Nvidia’s DSX pods as a way to right-size compute power for individual countries. This approach avoids the multi-year construction timelines and labor requirements associated with building massive, energy-intensive hyperscale data centers. ## Heterogeneous Computing Potential Ahn emphasizes the importance of heterogeneous computing systems that weave together different processors from companies like AMD, Nvidia, and Baidu. This strategy aims to optimize AI workloads and training for large language models. The market interest in this plumbing layer has surged, evidenced by startups like Gimlet reaching 3 billion dollar valuations. ## Future of Rakuten Capital Rakuten Capital aims to evolve into a de facto strategy arm for the Rakuten Group. Beyond traditional investing, the firm is exploring startup incubation to build businesses internally. By leveraging insights gained from their global portfolio, they hope to create ventures that provide tangible value to the parent organization’s headquarters. ## Market Outlook and Realities Ahn remains pessimistic about Southeast Asia receiving material spotlight for the next two to four years. High interest rates and inflation continue to raise funding costs, creating a difficult environment for local startups. Investors must now focus on supply-demand deficits and articulate how specific companies can effectively fill those market gaps. ## Sources covering this story - https://fortune.com/2026/10/30/saemin-ahn-southeast-asia-venture-capital/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._