China led Asia's startup funding to a $27.4 billion quarterly high in Q1 2026, marking a 20% increase from the previous quarter and doubling year-over-year totals. The surge was driven primarily by AI-focused ventures, with $16.5 billion (60% of Asia's total) flowing into Chinese startups like StepFun, Moonshot AI, and Galaxy Bot. India followed with $3.8 billion, including a $600 million round for AI systems developer Neysa, its largest equity financing in four quarters. Singapore's DayOne raised $2 billion in a Series C round, the largest late-stage deal in five quarters. Early-stage funding hit a two-year high at $11.2 billion, while seed investments surged 85% year-over-year to $3.6 billion, though deal counts dipped due to capital concentration. AI dominated sectoral investment, capturing $11.2 billion globally in Asia, reflecting investor optimism about the region's tech pipeline.