As the global startup investment slowdown begins to show signs of turning around, Southeast Asia’s startup ecosystem should prepare for a new fundraising landscape. A new report released this month by , Bain & Co, and Temasek, an investment firm owned by the government of Singapore, that investment into digital companies in Southeast Asia had reached its lowest level in six years. Google revealed Factors, including the global investment slowdown following the high-profile collapse of US-based , have played a role. In March, just after the bank’s implosion. Silicon Valley Bank Singapore Monetary Authority Chief Fintech Officer Sopnendu Mohanty , “Accessing capital will be the single biggest challenge” facing startups in the short term. said However, as the dark cloud that has hung over markets for the past year begins to of clearing, and the coffers of regional and global investors fill once more, Southeast Asia is poised as a region ripe for investment. Founders, though, should be aware of the changing fundraising landscape. show signs Founders should be laser-focused on profitability I have worked with Asian companies and governments for over a quarter century, organizing summits attended by heads of state, captains of industry, and entrepreneurs — most recently, the Horasis Asia Meeting being held in Binh Duong, Vietnam on December 3-4. My familiarity with the region gives me every confidence that Asian entrepreneurs will be able to emerge from the so-called “funding winter.” The region embraces a business culture of maximizing efficiency and profit — a mindset that will serve technology entrepreneurs courting tight-fisted investors who are increasingly worried about profitability over valuation. According to , Asian organizations have “pioneered many of the approaches that define world-class business practices today, from lean manufacturing to global business services.” McKinsey & Company Even as VC firms such as and are closing new, multi-million dollar funds for Southeast Asian startups, founders should be prepared to show a clear path to profitability and exit. During an investor conference in September, a general partner at Singapore-based Qualgro that the firm “passed one investment where founders were very good, the market was great … but we couldn’t see where the exit would be.” 500 Global Vertex told the audience Startups should keep sustainability at heart In recent years, some Southeast Asian countries have emerged as bright spots in the push toward sustainability. In 2021 Vietnam, a nation of just 97 million, became the world’s producer of solar power, and in August, Vietnamese electric vehicle (EV) company VinFast was than Ford and General Motors when it debuted on the NYSE. tenth-largest trading higher It is imperative that the next generation of startup unicorns coming out of the region keep sustainability at heart. Not only will this keep Southeast Asian countries on track to hit their goal of net-zero emissions by 2050, but it’s also likely to give them a leading edge in the current investor climate. While some startup sectors lagged during Q3 2023, late-stage companies in select industries such as semiconductors, AI, EVs and sustainability, received larger investments, according to from Crunchbase. And last year, global public and private investment into green energy hit $1 trillion for the first time, up from $32 billion in 2004, to BloombergNEF data. data according A recent of digital economy companies across Southeast Asia showed that while 85% of respondents showed interest in sustainability, less than 50% had actually implemented sustainable practices in their organizations. Startups must go beyond intention and act on sustainability practices, or risk being left behind in the global funding push towards sustainability. survey An end to the current global funding drought will come sooner than later, and Asian startups must remain poised to hit the ground running when the investment tides shift. *, Chairman, Horasis.* - Frank-Jürgen Richter Originally published on The Tech Panda.

The Crucial Role of Batteries in Boosting the Growth of Electric Vehicles in India

Humans vs. AI: A Scoreboard Update on the Ongoing Battle

Read My Stories

Too Long; Didn't Read

Download free Tech Leaders Productivity Report!

Charting a Course: Strategic Priorities for Southeast Asian Startups in the Face of Funding Revival

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

AI Boom Spurs US-China Chip Race

10+ Reasons Why Outsourcing Software Development Fails

10 Myths Stopping You From Becoming an Entrepreneur

11 Lessons I Learned as a Tech Founder

114 Stories To Learn About Founder Advice

AI Boom Spurs US-China Chip Race

10+ Reasons Why Outsourcing Software Development Fails

10 Myths Stopping You From Becoming an Entrepreneur

11 Lessons I Learned as a Tech Founder

114 Stories To Learn About Founder Advice

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps