Survival tips from Vertex as tough times grip SEA startups

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Hi reader,

This year may be one of the most challenging times for the Southeast Asian startup ecosystem. Companies have been pushed to adjust their priorities, slash valuations, cut jobs, or even shut shop.

However, from my interactions with founders and investors, most of them believe that it’s just part of a cycle and that the conditions will be better in the future. The big question is, “When will the bright sun come again? And who will survive to feel the sunlight?”

In this premium story, Vertex Ventures Southeast Asia and India partner Pui Yan Leung shared some insights on how startups can be among the survivors.

She touches on the need for a cash runway of up to two years, urges startups to prioritize profitability, and places an emphasis on business models that cater to people’s basic needs rather than luxury activities.

Personally, I like the quote that Leung brought up: “What doesn’t kill you makes you stronger.”

After this economic downturn passes, we may see startups with more sustainable business models and more impact on human life. Do you believe that too?

— Aditya, journalist at Tech in Asia

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