The rise of the Southeast Asian startup ecosystem

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Hello readers,

After months of hard work and planning, we finally wrapped up our annual Tech in Asia Conference yesterday. Titled “Southeast Asia’s Golden Age: 2021 and Beyond,” it was four days of exciting and engaging conversations about the region’s potential, with insights from founders, investors, and leaders from around the world.

Nick Nash of Asia Partners introduced the idea of “Southeast Asia’s golden age” at last year’s conference, when he dove deep into why the region’s startup scene was already on the path to success. This year, he shared with attendees why he thinks that’s still the case.

Today we look at:

• Nick Nash’s latest thoughts and opinions on the region’s startup scene
• How this Singaporean startup could make Covid-19 testing a lot easier
• Other newsy highlights such as Ant Group clearing the last hurdle to its IPO and a Costa Rican super app’s foray into Singapore’s electric vehicle scene

Looking at SEA’s new Golden Age

At this year’s Tech in Asia Conference, Asia Partners’ Nick Nash shared the reasons why Southeast Asia’s startup scene is still on the rise, plus his analysis of what has happened in the region over the last year.

• The rule of 25: According to him, the right time for startups to go public is once they reach – or are close to reaching – a US$25 million gross profit level in their most recent fiscal year. This a sweet spot where as companies that have just turned cash-flow positive could see their investment multiples rise tremendously.
• Cargo ahead of the rails: In Southeast Asia, apps (“cargo”) have overtaken telcos (“rails”) in terms of aggregate market share for the first time. In Nash’s view, this is a good sign of value creation and entrepreneurial opportunity in the region.
• Winning strategies: 70% of the region’s startup funding in the series A and B stages went to Singapore and Indonesia. Startups in Singapore tend to have regional ambitions, whereas those in Indonesia usually focus exclusively on the country, which is also the largest market in the region. Both strategies are core techniques for creating value that Nash feels have been reinforced over the last year.

Read more about the rise of Southeast Asia:

• “Rule of 25” is the key to startup IPOs, says Asia Partners’ Nick Nash
• The growing Lazada mafia
• Gojek mafia makes waves across Indonesian startup scene
• These are the most active investors in Southeast Asia’s startups
• The Southeast Asia startup family tree

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