entrepreneurship in south east asia market
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.TRANSCRIPT
Entrepreneurship in the Southeast Asian market
Bernard LeongCo-Founder
1
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)
2
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)
3
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
4
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.
5
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
%
6
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
8
Singapore is the preferred regional HQ for Finance, IT & Media
However, the local offices for global tech companies are mainly sales, business development & marketing.
9
The Southeast Asia VC industry is primitive & non-existent
Lack of Exits in the range of US$100M
10
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
11
Groupon Clone Wars in Southeast Asia
Groupon’s strategy focused on the 4th and 5th strongest player and acquired them at low cost.
12
Samwer Brothers are now in town with a clear SEA strategy ...
13
Interesting Companies from US are in Singapore ...
Greylock, Andressen Horowitz, Neoteny Labs & Charles River Ventures funded US$4.3 Series A round
14
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
15
Rise of Venture Incubators
Start-ups Graduated:
Just Started 1st Batch
Status not known yet
40 Companies and 46 Founders
16
Interesting Tales from Malaysia
• Acquire Friendster for US$39.5M• Online Payments• Now owns 0.16% now worth US$160M
17
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
18
Indonesia is the next big market
Platforms:
16K users325K challenges completed
19
Indonesia is the next big market
20
What’s missing in the ecosystem?
Series A Funding Gap
Talent to Scale Companies
Business Operatorsas VCs
21
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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