Why Your Startup Should Consider Asia
A look at two of the main startup hubs in the region — Singapore and South Korea
Asia is slowly but steadily defining its place in the global startup scene. With the number of venture capitalists rapidly increasing and one of the most advanced mobile markets in the world, Asia has now become a prime location for later-stage startups wishing to break away from the competition in the Valley. Here are some of the reasons why your startup should consider expansion into Asia, taking a look at two of the main startup hubs in the region — Singapore and South Korea.
One of the biggest attractions for startups interested in Singapore is the friendly governmental policies. The Singapore government welcomes technology startups with open arms and supports them with low tax rates, intellectual property rights laws, and immigration laws far less complicated than those in Silicon Valley. Government incentives are also attracting venture capitalists to Singapore in droves, leading to a boom in VC firms, acceleration programs, and an environment full of quality, talented people ready to make partnerships.
Steve Leonard, executive chairman of the IDA Singapore, explained another reason Singapore is an obvious choice for entering the Asian market — its location on the map.
“There are 400 to 500 million people within a couple of hours flight radius of Singapore. If you stretch it further to a six-hour flight radius, then you have roughly three billion people. Nearly half of the world’s population is within a fairly easy flight from Singapore.”
If your startup is just starting to explore the idea of expanding into Asia, Singapore may be your best bet.
In November I was fortunate enough to pitch my startup, Wideo, at the Startup Nations Summit in Seoul, South Korea. This event, co-hosted by Startup Korea and the Banks Foundation for Young Entrepreneurs, focused on the Asian entrepreneurial landscape and the expanding startup ecosystems across the globe.
Not unlike Singapore, the South Korean government is more than ready to support technology startups who wish to set up in the region. In fact, South Korea currently ranks first for the country with the most government backing per capita for startups — offering $3.7 billion over the next three years.
South Korea’s main attraction for startups is by far the mass adoption of mobile devices and solutions. 80% of the population owns smartphones and roughly 44% of the country shops on mobile, making it a prime market for startups who are seeking to expand their mobile offerings to a large consumer base in Asia. While most countries are still adopting mobile commerce and other mobile solutions, new technologies spread extremely fast in South Korea, resulting in a technology infrastructure years ahead of the rest.
Despite still being in the early stages, Asia’s startup scene is filled with opportunities outside these two startup hubs as well. Indonesia, Vietnam, Malaysia, and the Philippines are also the sites for startups choosing Asia over the Valley and finding success. Expanding into Asia isn’t for every startup, but with the boom in VCs and government-backed startup programs, it’s worth considering if your startup is ready to take on the international market.
This blog is by Agu De Marco, Co-Founder of Wideo, a DIY animated video production platform.
Looking for a community contributor for technology, startup or entrepreneur related stories? DM me on Twitter @agudemarco or email agu@wideo.co
