Startups flourishing as funding wave sweeps through SEA – The Executive Brief

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Hello reader,

Do you remember that new workout regime you wanted to implement, that business you wanted to start, or that person you were keen on asking out for dinner? All these random and unrelated events share one thing in common: They will never become a reality if you are not bold enough to venture into the unknown.

The first step toward any aspiration is often the hardest, as there is no proof that it can be achieved. Nonetheless, it also acts as a springboard by providing us with momentum and the belief in our abilities to reach our goals. For instance, Mark Zuckerberg probably would not have built Facebook if he hadn’t first developed FaceMash, a website set up as a type of “hot or not” game for Harvard students, in 2003.

Startups, too, never really get off the ground until they take their first steps (i.e., bankrolling their business through several funding rounds). And in today’s premium pick, we analyze the list of startups in Southeast Asia that have recently raised funding.

Today we look at:

• 50 rising startups in Southeast Asia
• The funding round of a Japanese startup that develops equipment for the fusion reactor industry
• Other newsy highlights such as India and Saudi Arabia investing in their digital economy and Byju’s IPO prospects

Premium summary

Preparing for takeoff

Image credit: Timmy Loen

In 2022, rising inflation, heightened geopolitical tensions, a pandemic, global supply chain constraints, and the threat of higher interest rates have made investing a lot more tricky. However, that doesn’t appear to have stopped money from rolling into Southeast Asia.

With a large pipeline of funding for early-stage startups and a continued strong forecast for Southeast Asian exits between 2021 and 2024, global investors are finding some solace in the region.

• One of a kind: Of the 50 startups in Southeast Asia that have recently raised funds, Kind Kones is unique. The Singapore-headquartered firm is the only one that sells plant-based ice cream. After its latest funding round, the company will make its vegan ice cream products available in supermarkets by the second quarter of the year.

• Funding galore: We are all aware of the difficulty of raising venture capital funds for startups. However, companies in the edtech and fintech space are making it look easy, with over 20% of the recently funded Southeast Asian startups coming from these industries.

• Dominant markets: Startups from Singapore and Indonesia make up more than 70% of the Southeast Asian startups that have recently raised funds. This is not entirely surprising, as the startup ecosystems in these countries are at a much more mature stage when compared to other relatively nascent markets such as Malaysia and Vietnam.

A silver bullet to save earth