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.

1. Entrepreneurship in the
Southeast Asian market
Bernard Leong
Co-Founder
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2. 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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3. The Southeast Asia market appears to be “fragmented”
Total Population: 613M
4th 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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4. The Southeast Asia is the new frontier for Digital & Mobility
200
Mobile Penetration (%)
Internet Penetration (%)
150
100
50
0
Indonesia Malaysia Philippines Singapore Thailand
Smartphone 9% 14% N/A 54% 13%
Sources: Wired, TomiAnohen Consulting
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5. The Southeast Asia is the new frontier for Digital & Mobility
150
Mobile Penetration (%)
Internet Penetration (%)
112.5
75
37.5
0
Cambodia Laos Myanmar Vietnam
Myanmar - emerging market since opening up politically this year.
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6. The Southeast Asia market is friendly to US technology companies
Penetration (%)
%
60
58.4
56.1
45
42
30
26.5
19.9
15 17
0
Brunei Singapore Malaysia Philippines Thailand Indonesia
Number of
Facebook 0.2M 2.6M 12M 27M 13.3M 41M
Users
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7. 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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8. 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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9. 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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10. The Southeast Asia VC industry is primitive & non-existent
Lack of Exits in the range of US$100M
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11. Exits rarely happened for Southeast Asia except very few instances
Acquired by
Acquired by
2010
Most are undisclosed i.e. it’s not a huge acquisition.
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12. 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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13. Samwer Brothers are now in town with a clear SEA strategy ...
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14. 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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15. 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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16. Rise of Venture Incubators
Start-ups Graduated:
Just Started 1st Batch
Status not known yet
40 Companies and 46 Founders
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17. Interesting Tales from Malaysia
• Acquire Friendster for US$39.5M
• Online Payments
• Now owns 0.16% now worth US
$160M
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18. Indonesia is the next big market
E-Commerce Platform
9K active shops
200K active products
listed
Funded by East Ventures & recently closed
US$700K with Cyberagent Ventures
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19. Indonesia is the next big market
Platforms:
16K users
325K challenges completed
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20. Indonesia is the next big market
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21. What’s missing in the ecosystem?
Series A Funding Gap
Talent to Scale
Companies
Business Operators
as VCs
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22. 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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23. So watch this space ...
Acknowledgements:
Saumil Nanavati
Rama Mamuaya
Daniel Cerventus
Willis Wee
Gwen Tan
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