B Capital Group, the investment firm run by Facebook co-founder Eduardo Saverin, expects startups to suffer from a fundraising drought until 2024 as turbulence in the financial markets persists.

Raj Ganguly, B Capital’s co-founder and managing partner, said that entrepreneurs will have to make their capital last 18 months. He added that we anticipate that this era of instability will continue, and businesses must make do with the capital they have.

Soaring inflation and rising interest rates have weighed on tech stocks globally, forcing companies to postpone funding rounds and initial public offerings. Grab Holdings, long regarded as one of Southeast Asia's rising stars, has lost more than 70 per cent of its value since going public in the United States in December, as investors turned against unprofitable tech ventures. Even Sea, the region’s most valuable tech firm, warned this month it wouldn’t be able to raise funds in the market.

Southeast Asia’s rising crop of tech companies are persuing investors with scenarios of profitability, as mounting losses and rising interest rates compel VCs to become more choosy.