ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

4 Lessons Investors Can Learn From Southeast Asia

Updated on April 12, 2020
karthikkash profile image

Karthik is an entrepreneur and a fitness enthusiast. Researching and writing about business, finance and everything else is his passion.

The technology market in Southeast Asia is booming, thanks to the young and tech-savvy population in the region. According to Bain & Co research, Southeast Asia’s investment ecosystem is heading towards a new age of growth. It is expected that by 2024, 10 new companies worth $1 billion each will emerge from the region. More than 1,300 companies have received seed or series A funding since 2011 and the total deal value over the next five years is expected to reach $70 billion.


Having said that, the Southeast Asian region is tricky to navigate as it represents a culturally, economically and commercially a heterogeneous region. Yet, several technology startups in the region are successfully overcoming these challenges and going on to become unicorns.


How are these enterprises able to succeed and what can investors, planning to enter the market, learn from them? Here are a few lessons.


Hyper-localise

The first key lesson for investors from the region is to hyper-localise. Unlike markets such as China, USA or India, the markets in the region are hyper-local on the country level and within the country. Hence, if investors are looking to invest in a startup in this region, understanding the local markets and nuances becomes extremely critical for success. They should understand the regulations, connections and the important players on the local level. Some of the most successful startups have mastered their local markets and expanded from there.

Expand across borders

While it is important to hyper-localise, it is also necessary for investors to have a strategy of cross-border expansion. This is important because investors who diversify across the region tend to reduce the risk of scaling in one single economy and grow faster. Furthermore, they stand to benefit from the steady integration of Southeast Asia’s markets.

Make the best of digital technologies

Startups and enterprises worldwide are increasingly taking advantage of new digital technologies to improve their commercial performance and strategic position in the market. As such, investors looking to invest in this region should encourage portfolio companies to embrace digital technologies so that they can keep up with the changing market scenarios and manage disruptions.

Identify the right talent for leadership roles

The success or failure of a startup largely depends on its talent pool, especially at the level of top leadership. The Southeast Asian region has traditionally witnessed a scarcity of experienced talent. Yet, several investors have been overly optimistic about the availability of talent in this region. Investors should realise that it is important to have people who are cross-culture sensitive, competent, vigilant of market changes and agile in the leadership position to create value and win.

Conclusion

The technology market in Southeast Asia is just taking off and holds great promise for investors. However, the latter should be mindful about the key factors that will drive startup success in this region. Entities that are able to build startups keeping local markets as well as regional scalability in mind, hire top talent and make the best use of digital technologies are bound to enjoy solid returns for their investments.

Comments

    0 of 8192 characters used
    Post Comment
    • karthikkash profile imageAUTHOR

      Karthik Kashyap 

      6 weeks ago from India

      Thank you for the comment Nikhil. And rightly said about the growth potential of the region.

    • sachnikh profile image

      Nikhil Sharma 

      6 weeks ago from India

      Southeast Asia is one of the fastest growing regions in the world in terms of technological advancement.

      There are abundance of talents, resources, and technologies to become a super powerful place. It's on us how we take the benefit of their growth model to make our startups stronger and efficient. Very nice article, Karthik..

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)