A decade of funding and exits for Southeast Asia’s startups

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Many startup founders dream of a big exit. You know, when a buyer offers to acquire your company for a big price tag, making you rich in the process.

The reality, as this chart shows, is that few get there. Many startups fail let alone make returns that please their investors and line the pockets of their founders and early employees. That said, for many companies, an exit isn’t the destination – nor should it be. Founders should be aiming to build long-term and sustainable businesses. An exit, if it comes at all, is a by-product of that process.

Nonetheless, this chart is a benchmark of the odds that each startup will exit and the value that they’ll exit at. The probability of an exit no doubt seems discouragingly low, much different from merger and acquisition data that saw fluctuations over the years.

However, given that the ecosystem in Southeast Asia is about 10 years young, a lot of exits simply haven’t happened yet.

There are also ways to improve your odds. As with anything in life, having the right networks is crucial if you want to back the right horses, and it’s as much an art as a science.

Caveat

We do acknowledge that there are limitations to our dataset. If you see something that’s missing or incorrect, do reach out to us at research@techinasia.com and let us know.

SOURCES

Data: Tech in Asia
Infographics: Susi Susanti
Analysis: Terence Lee
Editing: Jaclyn