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Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
Startup Nations Asia
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Startup Nations Asia

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Understanding Asia's current startup ecosystems with Startup Korea Roundtable.

Understanding Asia's current startup ecosystems with Startup Korea Roundtable.

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  • 1. May 13th 2014 1 STARTUP NATIONS ASIA MEETUP WITH STARTUP KOREA ROUNDTABLE
  • 2.  This material is the result of collaborative work of the Bank Foundation for Young Entrepreneurs and the delegates of Asian countries that participated in the event.  The contents herein are based on publicly available information and the delegates’ experiences/knowledge.  Please refer to ‘Startup Nations Asia Meetup’ when you use this material 2 DISCLAIMER
  • 3. 1. Understand Asia’s current startup ecosystems 2. Share insights on development of startup ecosystems 3. Devise ways to collaborate and learn from each other 3 PURPOSE OF OUR MEETUP Asia Startup Ecosystems Presentation Panel Q&A Group Discussion
  • 4. 4 STARTUP ECOSYSTEMS IN ASIA
  • 5. 5 ASIAN STARTUP ECOSYSTEM? - London: the largest hub - Paris & Berlin: active entrepreneurial places - 8 of the top 10 startup ecosystems in North America - Exemplary startup ecosystems : Silicon Valley & New York City - Tel Aviv: 2nd best startup ecosystem - Highest density of tech startups thanks to funding from government Benchmark others? Understand & design our own?
  • 6.  Economy: Rapid growth  GDP growth since ’09: China ~9%, SEA ~6% 6 ASIA OVERVIEW The World Bank, IMF Data  Potential for Startup hotspot  Immense Human resources  Untapped local markets  Incoming foreign investments “Technology advancements are making ideas travel faster and faster than ever before… In the coming years, ‘made in Asia’ will increasingly become ‘invented in Asia’.” Rebecca A. Fannin, Author of Startup Asia
  • 7.  6 basic pillars with 3 major research data sets APPROACH Key reference reports (Publisher): Doing Business 2014 (The World Bank / IFC), 2013 Global Report (Global Entrepreneurship Monitor), Global Competitiveness Report 2013-2014 (World Economic Forum) Regulation Market / Infra Finance Technology Talents Culture
  • 8.  Each countries evaluated based on statistics & surveys 8 FOUR GROUPS OF STARTUP ECOSYSTEMS IN ASIA Market /Infra Regulation Financing Talents Technology Culture China 1 2 2 2 2 2 Hong Kong 2 1 1 1 1 2 India 3 3 2 2 2 2 Indonesia 2 3 2 3 2 2 Japan 1 2 3 2 1 3 Korea 1 2 3 1 1 3 Malaysia 1 2 1 1 1 3 Philippines 3 3 3 3 3 1 Singapore 2 1 1 1 1 2 Taiwan 2 1 1 2 1 2 Thailand 3 2 2 2 3 1 Vietnam 3 3 3 2 3 1 Key reference reports (Publisher): Doing Business 2014 (The World Bank / IFC), 2013 Global Report (Global Entrepreneurship Monitor), Global Competitiveness Report 2013-2014 (World Economic Forum)
  • 9. FOUR GROUPS OF STARTUP ECOSYSTEMS IN ASIA Market /Infra Regulation Financing Talents Technology Culture Singapore 2 1 1 1 1 2 Hong Kong 2 1 1 1 1 2 Malaysia 1 2 1 1 1 3 Taiwan 2 1 1 2 1 2 China 1 2 2 2 2 2 India 3 3 2 2 2 2 Indonesia 2 3 2 3 2 2 Philippines 3 3 3 3 3 1 Thailand 3 2 2 2 3 1 Vietnam 3 3 3 2 3 1 Japan 1 2 3 2 1 3 Korea 1 2 3 1 1 3 Market /Infra Regulation Financing Talents Technology Culture China 1 2 2 2 2 2 Hong Kong 2 1 1 1 1 2 India 3 3 2 2 2 2 Indonesia 2 3 2 3 2 2 Japan 1 2 3 2 1 3 Korea 1 2 3 1 1 3 Malaysia 1 2 1 1 1 3 Philippines 3 3 3 3 3 1 Singapore 2 1 1 1 1 2 Taiwan 2 1 1 2 1 2 Thailand 3 2 2 2 3 1 Vietnam 3 3 3 2 3 1  Finding similar patterns among different countries  Grouping the countries into four categories Key reference reports (Publisher): Doing Business 2014 (The World Bank / IFC), 2013 Global Report (Global Entrepreneurship Monitor), Global Competitiveness Report 2013-2014 (World Economic Forum)
  • 10.  Hong Kong  Malaysia  Singapore  Taiwan 10 GROUP 1
  • 11.  Easy incorporation  Relatively affluent funding I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN 0 10 20 30 40 50 60 Starting a business - Days 0 10 20 30 40 50 Starting a business – Cost (% of income per capita) (0) (20) (40) (60) (80) (100) (120) (140) Venture capital availability (Rank) (0) (20) (40) (60) (80) (100) (120) (140) Ease access to loans (Rank) 11
  • 12.  Case of Malaysia  “Economic Transformation Program”  Entrepreneurship as a lever to develop national economy  Starting in 2010, by Performance Management and Delivery Unit  ‘Vision 2020’  Openness and innovation and emphasized  Government Initiatives to support funding  “Cradle Fund”  Since 2003, by Cradle Fund Sdn Bhd  Currently managing $50M (almost 500 pre-seed projects)  Tax break to individuals investing in startups  Establishment of trade body for angel investors 12 I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN
  • 13.  Case of Malaysia  Malaysia’s noticeable improvement in regulations since 2009 13 I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN
  • 14.  Relatively weak entrepreneurial spirit  Efforts to promote entrepreneurial activities  Case of Singapore  Case of Hong Kong  iStartup@HK : one-stop shop for entrepreneurs 14 I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN * HK data not available 0 10 20 30 40 50 60 70 80 90 Entrepreneurial intentions
  • 15.  Will educational programs be effective in building entrepreneurial culture in these countries?  How does ‘being business-friendly’ in general differ from ‘being entrepreneurial’? 15 I. I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN
  • 16. • Japan • Republic of Korea 16 GROUP 2
  • 17.  Technological advancements: base for innovative startups  World leading technology oriented companies 17 II. TECHNOLOGICAL CAPABILITIES NOT YET WELL- SUPPORTED BY BUSINESS ENVIRONMENTS - JAPAN , REPUBLIC OF KOREA (0) (20) (40) (60) (80) (100) (120) (140) (160) Availability of latest technologies (Rank) (0) (10) (20) (30) (40) (50) (60) (70) (80) (90) (100) University-industry collaboration in R&D (Rank)
  • 18.  Lack of ability to attract new talents  Capacity to attract < Capacity to retain 18 II. TECHNOLOGICAL CAPABILITIES NOT YET WELL- SUPPORTED BY BUSINESS ENVIRONMENTS - JAPAN , REPUBLIC OF KOREA (0) (10) (20) (30) (40) (50) (60) (70) (80) (90) (100) Country capacity to retain talent (Rank) (0) (10) (20) (30) (40) (50) (60) (70) (80) (90) (100) Country capacity to attract talent (Rank)
  • 19.  Obstacle: Difficult funding  Case of Korea  Efforts for better financial infra  Korea Fund of Funds: $1.6B  “Growth Ladder Fund”: $6B  Small and Medium Business Administration’s various funding schemes for startups  “Future Creation Fund”: $0.5B of public-private partnership  Increased tax break for angel investors and technology oriented M&A deals 19 II. TECHNOLOGICAL CAPABILITIES NOT YET WELL- SUPPORTED BY BUSINESS ENVIRONMENTS - JAPAN , REPUBLIC OF KOREA (0) (20) (40) (60) (80) (100) (120) (140) Ease access to loans (Rank) (0) (20) (40) (60) (80) (100) (120) (140) Venture capital availability (Rank)
  • 20.  What role could the large tech corporations play for the better startup ecosystem? 20 II. TECHNOLOGICAL CAPABILITIES NOT YET WELL- SUPPORTED BY BUSINESS ENVIRONMENTS - JAPAN , REPUBLIC OF KOREA
  • 21. • Indonesia • Philippines • Thailand • Vietnam 21 GROUP 3
  • 22.  Entrepreneurship as a viable and prominent career option  Being optimistic, outgoing & aggressive: Entrepreneurial 22 III. ACTIVE AND OPTIMISTIC CULTURE SPURS ENTREPRENEURIAL ACTIVITIES - INDONESIA , PHILIPPINES, THAILAND, VIETNAM 0 10 20 30 40 50 60 Perceived Opportunities 0 10 20 30 40 50 60 70 80 Perceived Capabilities “…An aggressive and hungry mentality in a post-communist landscape…” Tech in Asia, ‘10 reasons why Vietnam’s startup scene is the most aggressive in Southeast’ Sep. 2013
  • 23.  Case of Indonesia  Young 5 million registered startups  Workforce of 67% of entire population  Mean age of workforce below 30 years old  Over 3,000 universities, 1 million graduates every year  Ciputra Foundation  Founded by Indonesia’s 5th largest conglomerate Ciputra  Universitas Ciputra Entrepreneurship Center 23 III. ACTIVE AND OPTIMISTIC CULTURE SPURS ENTREPRENEURIAL ACTIVITIES - INDONESIA , PHILIPPINES, THAILAND, VIETNAM “Entrepreneurship and Startups are key to save 1 million young college graduate jobless people and many youngsters who cannot find work” Ir. Ciputra
  • 24.  Active involvement and successful startup cases  Leaned towards startups with limited growth potential  Success cases focusing on simple e-commerce model  Local market oriented  Already proven business models or products/services 24 III. ACTIVE AND OPTIMISTIC CULTURE SPURS ENTREPRENEURIAL ACTIVITIES - INDONESIA , PHILIPPINES, THAILAND, VIETNAM 0 5 10 15 20 25 30 Early stage entrepreneurial activity (TEA) “Indonesia’s consumerism is expected to grow further and e-commerce continues to play a critical role in it.” Andy Surja Boediman* *Comment rephrased
  • 25.  What kind of education program is in need to help this entrepreneurial culture become sustainable businesses? 25 III. ACTIVE AND OPTIMISTIC CULTURE SPURS ENTREPRENEURIAL ACTIVITIES - INDONESIA , PHILIPPINES, THAILAND, VIETNAM
  • 26. • Beijing/ Shanghai • India 26 GROUP 4
  • 27.  Case of India  Success Cases  Government’s Initiative  Startup Village in Kerala  Case of China  Success Cases  Government’s Initiative  千人計劃 27 IV. ABUNDANT HUMAN RESOURCES ARMED WITH KNOWLEDGE AND EXPERIENCE - BEIJING/SHANGHAI, INDIA  Superstar cases stirring up hype for startups  From copied foreign services to its own innovation  Initiated by elite group and immense human resources
  • 28.  Yet meaningful differences between China and India 28 IV. ABUNDANT HUMAN RESOURCES ARMED WITH KNOWLEDGE AND EXPERIENCE - BEIJING/SHANGHAI, INDIA (0) (20) (40) (60) (80) (100) (120) Burden of government regulation (Rank) (0) (20) (40) (60) (80) (100) (120) Fixed Broadband internet subscriptions/capita (Rank)  Internet penetration  India 13%, China 42%  Cost of starting a business  vs. OECD average: India 13x, China 0.6x
  • 29.  What are the most important pillar that China and India should strengthen to leverage its large size? 29 IV. ABUNDANT HUMAN RESOURCES ARMED WITH KNOWLEDGE AND EXPERIENCE - BEIJING/SHANGHAI, INDIA
  • 30. Answers to the question(s) for each group 30 PANEL DISCUSSION
  • 31.  Will educational programs be effective in building entrepreneurial culture in these countries?  Singapore: Need to apply experience in mentoring and coaching  Malaysia: different programs need to be designed differently as there is a difference between rural and urban areas  Taiwan: The role of VC is required. Often VCs request up to 80% of equity and it does not help nurture startup ecosystem. In order to resolve the issue, mentoring for VCs and startups are called for.  How does ‘being business-friendly’ in general differ from ‘being entrepreneurial’?  Malaysia: Being entrepreneurial is more innovation-driven and more agile, thus lead to higher growth 31 I. I. ATTRACTIVE & MATURE ENVIRONMENT TO START A BUSINESS - HONG KONG, MALAYSIA , SING APORE, TAIWAN
  • 32.  What role could the large tech corporations play for the better startup ecosystem?  Japan: Highly educated workforce still prefer working for large corporates such as Sony. So the large corporations need to be more active in partnership with startups to change people’s perception on entrepreneurship.  Korea: Corporates such as Samsung could partner with startups to share their downside risk as well as upside potential. 32 II. TECHNOLOGICAL CAPABILITIES NOT YET WELL- SUPPORTED BY BUSINESS ENVIRONMENTS - JAPAN , REPUBLIC OF KOREA
  • 33.  What kind of education program is in need to help this entrepreneurial culture become sustainable businesses?  Vietnam: Should help understand what startup players are – VCs, accelerators, incubators  Thailand: Need to focus on improving competency. The level of computer science talents produced through universities is not sufficient.  Indonesia: Need to teach “fail fast, fail cheap, fail often.” Should not education just to educate. Education should inspire, train then linked to incubate 33 III. ACTIVE AND OPTIMISTIC CULTURE SPURS ENTREPRENEURIAL ACTIVITIES - INDONESIA , PHILIPPINES, THAILAND, VIETNAM
  • 34.  What are the most important pillar that China and India should strengthen to leverage its large size?  India: Need better infrastructure (business centers, internet penetration, regulation)  China: Culture that encourages youth to go into entrepreneurial space and respect failure. Also, copycats that allows easy money is not helping. 34 IV. ABUNDANT HUMAN RESOURCES ARMED WITH KNOWLEDGE AND EXPERIENCE - BEIJING/SHANGHAI, INDIA
  • 35. 35 GROUP DISCUSSION
  • 36.  What is the best way of collaboration between public and private sectors for entrepreneurship?  David Chung(HK), Buke Cuhadar(Startup Nations), Inse Hwang(SK), Bomi Kim (SK), Kyung Lee(KISED), Linda Mostrup Pedersen(Malaysia), Jaeyoung Park(KOEF), Ivan A. Sandjaja(Indonesia)  How can we help developing more vibrant startup community?  Amarit Charoenphan (Thailand), Jinyoung Chung (SK), ), Hoon Jung (Startup Alliance Korea), Jaesun Jung(Seoul Business Agency), Dongyeol Lee(Japan), Hay Nguyen(Vietnam), Mukul Pasricha (India),  What are the education program that entrepreneurs need?  Jorge Azurin(Philippines), Denny Bernardus(Indonesia), Yoonchung Chey(SK), Rebecca Hwang(Rivet Ventures), JJiaojiao Lu(Shanghai)  How can we overcome the barriers that entrepreneurs face in terms of investment?  Serb Jodha(Malaysia), Eugene Kim(Sparklabs), David Kuo(Taiwan), Hugh Mason(Singapore) 36 PARTICIPANTS OF GROUP DISCUSSION
  • 37. 37 PUBLIC & PRIVATE PARTNERSHIP Voice from the discussion Potential next step (Ideas) • What is difficult from private’s point of view when working with public? − Different work protocol and customs (paper writing, needs for numbers, etc.) − Competition among organizations and politics • What is important to make the partnership successful? − Government needs cause and logic − Multi-parties relationship can work (including global companies, Indonesia) • What can we do for better and more efficient partnership? − Helping governments to build network and learn from each other • Encouraging government officers to participate in Startup Nations Summit in November − Workshop for government officers followed by co- workshop with private sector leaders
  • 38. 38 STARTUP COMMUNITIES Voice from the discussion Potential next step (Ideas) • How can startup communities be activated? − Diverse small groups need to be connected in different ways, especially among the ones who are in different fields − Emergence of ‘community curators’ will bridge across different communities to create synergy − Push-pull approach is needed where startup ecosystem is not strong • Is there any best practices that can be shared? − Co-working and Co-living concept community in India − Korea’s SK HCL Lab gathers different people gather for a new projects • Build a space sharing program − Startup programs/ co- working spaces of different Asian countries can be shared across borders − Build online community for the purpose
  • 39. 39 EDUCATION Voice from the discussion Potential next step (Ideas) • What are the different types of educational programs? − Motivational lectures from successful, experienced entrepreneurs − Training programs that actually push participants to start a business − Providing problems/issues to solve that leads to students launching a business that solves the problem • How can we make educational programs more effective? − Build entrepreneurial spirit as early as possible so shy culture of Asia can be overcome (in K-12 programs) − Leverage already available resources • Build archive of educational programs − Publicly available videos or materials that are worth sharing − Programs designed and executed in different countries to the participants can benchmark each other
  • 40. 40 INVESTMENT Voice from the discussion Potential next step (Ideas) • Why should investor communities collaborate? − Asia has many success cases that are worth sharing − Investors need to build confidence in market by reinforcing each other • What are the benefits of educating investors? − Facing overflow of money available to startups in Asia, traditional investors lacks understanding in the area − Making them understand the virtuous cycle of startup ecosystem will encourage more successful entrepreneurs to act as investors • Sharing ways to sort our Zombie startups given the current situation of boosting startups − Constantly update investors in other countries with cases from each country − Share successful funding cases

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