entrepreneurship in south east asia market

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Entrepreneurship in the Southeast Asian market Bernard Leong Co-Founder 1

Post on 17-Oct-2014

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The focus on this talk delivered for Penn-Olson's private investors and entrepreneurs' gathering. Focus on technology entrepreneurship, particularly in the consumer internet space, and both business & venture capital activity here.

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Page 1: Entrepreneurship in South East Asia market

Entrepreneurship in the Southeast Asian market

Bernard LeongCo-Founder

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Page 2: Entrepreneurship in South East Asia market

The actual topic is too wide, so I shall narrow the scope

Focus on Consumer Internet (Social Media, Mobile-Web, Local, E-Commerce) and Enterprise (Cloud Computing)

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The Southeast Asia market appears to be “fragmented”

Total Population: 613M4th most populated place

after Facebook, India and China

Total Mobile Subscribers: 550M~11% Globally

Total Internet Subscribers: 139M~15% of Asian Internet Users

(including China & India)

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The Southeast Asia is the new frontier for Digital & Mobility

0

50

100

150

200

Indonesia Malaysia Philippines Singapore Thailand

Mobile Penetration (%)Internet Penetration (%)

54%Smartphone

Sources: Wired, TomiAnohen Consulting

13%14%9% N/A

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The Southeast Asia is the new frontier for Digital & Mobility

0

37.5

75

112.5

150

Cambodia Laos Myanmar Vietnam

Mobile Penetration (%)Internet Penetration (%)

Myanmar - emerging market since opening up politically this year.

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The Southeast Asia market is friendly to US technology companies

0

15

30

45

60

Brunei Singapore Malaysia Philippines Thailand Indonesia

1719.9

26.5

42

56.158.4

Penetration (%)

0.2M 2.6M 12M 27M 13.3M 41MNumber ofFacebook

Users

%

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Early adopters are friendly to other US services in Southeast Asia

3M+ members in Southeast Asia

11.4M+ members in Southeast Asia(excludes Vietnam, Laos, Myanmar)

6M+ members in Southeast Asia(excludes Vietnam, Laos, Myanmar)

Sources: LinkedIn, Symocos & Olivia Woods

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The Southeast Asia is the new frontier for Digital & Mobility

“The Digital Media Habits & Attitudes of Southeast Asians Consumers”, Nielsen, Oct 2011

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Singapore is the preferred regional HQ for Finance, IT & Media

However, the local offices for global tech companies are mainly sales, business development & marketing.

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The Southeast Asia VC industry is primitive & non-existent

Lack of Exits in the range of US$100M

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Exits rarely happened for Southeast Asia except very few instances

Acquired by

Acquired by

Most are undisclosed i.e. it’s not a huge acquisition.

2010

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Groupon Clone Wars in Southeast Asia

Groupon’s strategy focused on the 4th and 5th strongest player and acquired them at low cost.

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Samwer Brothers are now in town with a clear SEA strategy ...

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Interesting Companies from US are in Singapore ...

Greylock, Andressen Horowitz, Neoteny Labs & Charles River Ventures funded US$4.3 Series A round

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Interesting Companies from US are in Singapore ...

• 50M registered users: IM, microblogging, games, virtual gifting & picture sharing•Funded by Accel, Redpoint, DCM, Gree & an Indonesian entrepreneur - 3rd round of funding US$8-9M

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Rise of Venture Incubators

Start-ups Graduated:

Just Started 1st Batch

Status not known yet

40 Companies and 46 Founders

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Interesting Tales from Malaysia

• Acquire Friendster for US$39.5M• Online Payments• Now owns 0.16% now worth US$160M

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Indonesia is the next big market

Funded by East Ventures & recently closed US$700K with Cyberagent Ventures

E-Commerce Platform9K active shops

200K active products listed

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Indonesia is the next big market

Platforms:

16K users325K challenges completed

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Indonesia is the next big market

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What’s missing in the ecosystem?

Series A Funding Gap

Talent to Scale Companies

Business Operatorsas VCs

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Are we ready yet? Probably yes ...

“Life offer no guarantees. But it does offer strategies for managing the odds, indeed, even managing luck. The eseence of “managing luck” involves four things: (1) cultivating the ability to zoom out to recognize luck when it happens, (2) developing the wisdom to see when, and when not, to let luck disrupt your plans, (3) being sufficiently well-prepared to endure an inevitable spate of bad luck, and (4) creating a positive return on luck – both good luck and bad – when it comes. Luck is not a strategy but getting a positive return on luck is” - Jim Collins “Great by Choice”

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So watch this space ...

Acknowledgements:Saumil NanavatiRama Mamuaya

Daniel CerventusWillis WeeGwen Tan

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