Presented at ArabNet Riyadh on December 11, 2019

1. 1
An Introduction to
Southeast Asia’s Startup Ecosystems
PAUL ARK
MANAGING DIRECTOR, CORPORATEVENTURE CAPITAL
DIGITALVENTURES,A SUBSIDIARY OF SIAM COMMERCIAL BANK
DECEMBER 11, 2019

2. About DigitalVentures /
Siam Commercial Bank

3. Siam Commercial Bank
§ Established by Royal Charter in 1906 as the firstThai bank
§ Offers full range of financial services, including retail & wholesale
banking, lending, FX, trade, cash management, custodial services, credit &
charge card services and investment banking services
§ Highest market cap among Thai financial institutions (US$13.5bn),
with US$ 100bn in assets
§ Leading position in retail banking with 14m retail customers and #1
position in mortgage loans
§ Offers the nation’s largest network of retail branches (1,019) and
ATMs (9,621); employs 26,000+ staffs
§ Operates in 8 countries
§ Full bank license: Cambodia (4 branches),Vietnam (9 branches)
§ Offshore bank: Hong Kong, Singapore, Laos
§ Representative Office: China, Myanmar
§ Established Digital Ventures fintech unit in 2016, with digital banking,
startup accelerator, and corporate venture capital teams

4. DigitalVentures’ investment focus
Fund of funds
• Regional/international funds
• FinTech and core tech
• Seed to Series B
• USD 3-8m/fund
• International FinTech & core tech investments
• Target early & growth stages, Series A through C
• Investments of USD 150k-5m
Corporate Venture Capital
USD100M
Direct investment
Products Infrastructure
• Lending
• Payments & remittances
• Insurance
• Mortgage
• Brokerage, asset management
• Wealth management
• Small business
• Trade finance
• Blockchain
• Data mining & analytics
• Fraud & security
• Credit scoring
• Geolocation & indoor positioning
• Social engagement
• RegTech & digital identity
Deep tech
• AI, machine learning
• Voice user interface, NLP
• Biometrics
• Quantum computing
• Internet of Things
• AR/VR/MR
Strategic Investments
USD50M
• Fund-of-fund investments in Mainland China

5. DigitalVentures’ CVC unit has a global footprint
SCB has studied 46 startup ecosystems in 34 countries, and invested in 10 of them
Europe
• Berlin, Germany
• Cambridge, England
• Copenhagen, Denmark
• Dublin, Ireland
• Geneva, Switzerland
• Helsinki, Finland
• Lisbon, Portugal
• London, England
• Madrid, Spain
• Paris, France
• Stockholm, Sweden
Asia
• Bangkok, Thailand
• Beijing, China
• Hanoi, Vietnam
• Ho Chi Minh City, Vietnam
• Hong Kong
• Jakarta, Indonesia
• Kuala Lumpur, Malaysia
• Manila, Philippines
• Melbourne, Australia
• Nur-Sultan, Kazakhstan
• Phnom Penh, Cambodia
• Seoul, South Korea
• Shanghai, China
• Shenzhen, China
• Singapore
• Suva, Fiji
• Sydney, Australia
• Tokyo, Japan
• Yangon, Myanmar
Americas
• Chicago
• Los Angeles
• New York
• San Francisco
• Santiago, Chile
• Seattle
• Toronto, Canada
• Vancouver, Canada
• Waterloo, Canada
Middle East & Africa
• Accra, Ghana
• Cape Town, South Africa
• Johannesburg, South Africa
• Lagos, Nigeria
• Nairobi, Kenya
• Riyadh, Saudi Aribia
• Tel Aviv, Israel
Investments made or pending Investments made on behalf of SCB

6. Rise of the Southeast Asian
Economies & Startup Ecosystems

7. Macro Overview – ASEAN’s leading 6 countries
PENETRATION% IN = Internet MO = Mobile MS = Mobile Social SO = Social Media BK = Banked CC = Credit Card
THAILAND
69M PPL, $407BN GDP
IN 67%
MO 133%
BK 78%
MS 62%
SO 67%
CC 6%
MALAYSIA
31M PPL, $296BN GDP
IN 71%
MO 139%
BK 81%
MS 65%
SO 71%
CC 20%
INDONESIA
261M PPL, $932BN GDP
IN 51%
MO 142%
BK 36%
MS 35%
SO 40%
CC 2%
SINGAPORE
6M PPL, $297BN GDP
IN 82%
MO 147%
BK 96%
MS 70%
SO 77%
CC 35%
VIETNAM
93M PPL, $203BN GDP
IN 53%
MO 131%
BK 31%
MS 43%
SO 48%
CC 2%
PHILIPPINES
103M PPL, $305BN GDP
IN 58%
MO 126%
BK 28%
MS 52%
SO 58%
CC 3%
639M PEOPLE
$2.6TRILLION GDP
306MM ON SOCIAL MEDIA
133% MOBILE PENETRATION
While ASEAN’s leading six economies drive the bloc, MYANMAR and CAMBODIA show signs of breakout growth
in the coming years, while LAOS and BRUNEI will remain regional laggards
Source: World Bank, AseanUp

8. Economic & ecosystem comparison
Sources: United Nations, IMF, UNESCO, World Intellectual Property Organization, We Are Social, Worldpay Global Payments Report, IVC Research Center, Israel Ministry of Economy and Industry, Crunchbase, NVCA, Pitchbook, CB Insights, China’s
National Development and Reform Commission, Statista, Enterprise Singapore, Cento VC, KPMG, Thailand’s National Innovation Agency, Techsauce, Tech in Asia, E27, Topica Founder Institute, Digital Ventures analysis
69.3 mn
$1,310 bn
$18,910
19.0%
0.4%
105
$48.9 mn
Global Innovation Index ranking, 2019
Startups
Startup density (startups/100k pop)
VC investment (US$, 2018)
VC investment/startup (US$, 2018)
VC investment/capita (US$, 2018)
Tech exits (2018)
Exits as % of # startups
Population
GDP (US$ PPP, 2018)
GDP/capita (US$ PPP, 2018)
Tertiary education (% working age pop)
Civilian R&D spending (% of GDP)
Patent applications (2018)
Civilian R&D spend/patent app (US$)
5.8 mn
$555 bn
$95,800
43.9%
1.8%
930
$10.8 mn
327 mn
$20,500 bn
$62,720
43.5%
2.3%
56,142
$8.5 mn
8.5 mn
$334 bn
$39,550
47.0%
3.5%
1,899
$6.2 mn
8
4,000
69.1
$1,780 mn
$444,750
$307
8
0.2%
3
120,000
36.7
$99,500 mn
$830,000
$304
864
0.7%
10
5,350
63.3
$6,470 mn
$1,200,000
$765
103
1.9%
43
700
1.0
$61 mn
$87,500
$0.9
2
0.3%
USA Israel Singapore Thailand
ECONOMIC
STARTUP ECOSYSTEM
China
1,415 mn
$25,300 bn
$17,860
8.8%
1.5%
53,345
$6.9 mn
14
100,000
7.1
$93,800 mn
$940,000
$66
1,050
1.1%
Indonesia Malaysia Vietnam Philippines
266.8 mn
$3,494 bn
$13,099
9.4%
0.1%
7
$304.3 mn
85
2,100
0.8
$8,340 mn
$3,970,000
$32
na
na
32.0 mn
$1,002 bn
$31,273
18.8%
1.0%
143
$68.0 mn
35
3,000
9.4
$148 mn
$49,330
$4.6
na
na
96.5 mn
$706 bn
$7,314
6.7%
0.3%
22
$80.1 mn
42
1,700
1.8
$127 mn
$74,700
$1.3
na
na
106.5 mn
$955 bn
$8,968
26.6%
0.1%
18
$49.3 mn
54
1,000
0.9
$33 mn
$33,000
$0.3
na
na

9. SEA’s startup ecosystems are young, with room for growth…
Source:As per “Economic & ecosystem comparison” slide
69.1
63.3
36.7
9.4
7.1
1.8 1.0 0.9 0.8
Singapore Israel USA Malaysia China Vietnam Thailand Philippines Indonesia
Startup density
(# of startups per 100,000 population)

10. …with the potential to drive huge gains in national innovativeness
Startup density
Global
Innovation
Index
Ranking
69.1, #8
63.3, #10
36.7, #3
9.4, #35
7.1, #14
0.9, #54
0.8, #85
1.0, #43
1.8, #42
For nascent or less-developed startup
ecosystems, even small increases in
startup activity & creation can result in
significant improvements to a country’s
innovativeness and competitiveness
Source:As per “Economic & ecosystem comparison” slide

11. Southeast Asia is a highly-connected, mobile-first market
6:31
6:42
6:42
7:02
8:05
8:36
9:00
9:11
9:29
10:02
United States (#19)
GLOBAL AVERAGE
Vietnam (#17)
Singapore (#15)
Malaysia (#8)
Indonesia (#5)
Colombia (#4)
Thailand (#3)
Brazil (#2)
Philippines (#1)
Hours/day online (all devices)
2:24
2:58
3:12
3:14
4:02
4:32
4:35
4:45
4:58
5:13
United States (#27)
Singapore (#22)
Vietnam (#20)
GLOBAL AVERAGE
Malaysia (#9)
Nigeria (#5)
Indonesia (#4)
Brazil (#3)
Philippines (#2)
Thailand (#1)
Hours/day online (mobile)
Source:We Are Social
Global Average
Global Average

12. Playground for titans
Southeast Asia has become a battleground for Asian tech giants looking drive their growth by tapping into a
640 million person market

13. Predecessors fuel the next wave of Asian growth
Source: Parag Khanna, Arbor Ventures

14. Southeast Asia looks like China 5 to 10 years ago
Source: IMF, Golden Gate Ventures Southeast Asia Report, Catcha Group –'8 Predictions for the Southeast Asian Tech Scene –A Checkpoint Plus 3 New Predictions for Indonesia’,
North Ridge Partners
GDP/capita (PPP)
Internet population
Internet pop growth rate
Market cap of market leaders
US$11,351
564m (42% pen)
11%
US$94.5b (2010)
China in 2012
US$13,956
460m (65% pen)
14%
US$86.5b
SEA in 2019

15. Venture Capital & Southeast Asia

16. GlobalVC funding activity in 2016 tripled over the previous 3 years
Americas
§ US$60.4bn invested
§ 5,177 deals
Europe
§ US$11.9bn invested
§ 1,776 deals
Asia
§ US$26.0bn invested
§ 1,381 deals61.1%
12.0%
26.6%
Note: % by capital invested
Source: KPMG, CentoVC, Pitchbook
US$98.8bn
invested
8,507
deals
2016
Rest of World
§ US$0.5bn invested
§ 173 deals
0.5%
Southeast Asia, US$3.5bn
§ 13.5% of capital invested
§ 24.8% of deals funded

17. VC funding increased globally, with Asia growing fastest (80%YoY)
Americas
§ US$87.3bn invested
§ 7,609 deals
Europe
§ US$17.9bn invested
§ 2,250 deals
Asia
§ US$46.2bn invested
§ 1,101 deals57.3%
11.8%
30.3%
US$152.3bn
invested
11,035
deals
2017
Rest of World
§ US$0.9bn invested
§ 75 deals
0.6%
Southeast Asia, US$5.4bn
§ 11.6% of capital invested
§ 35.4% of deals funded
Note: % by capital invested
Source: KPMG, CentoVC, Pitchbook

18. The pattern repeated in 2018, with AsiaVC funding again up 80%
Americas
§ US$129.5bn invested
§ 8,010 deals
Europe
§ US$21.9bn invested
§ 2,224 deals
Asia
§ US$83.1bn invested
§ 1,436 deals55.1%
9.3%
35.4%
Rest of World
§ US$0.5bn invested
§ 92 deals
0.2%
US$235.0bn
invested
11,862
deals
2018
Southeast Asia, US$12bn
§ 14.4% of capital invested
§ 25.1% of deals funded
Note: % by capital invested
Source: KPMG, CentoVC, Pitchbook

19. After 2018 peak, 2019 shows signs of a slight dip (projected 10%)
Americas
§ US$67.0bn invested
§ 4,462 deals
Europe
§ US$15.2bn invested
§ 1,312 deals
Asia
§ US$23.2bn invested
§ 702 deals63.4%
15.5%
23.6%
Rest of World
§ US$0.3bn invested
§ 36 deals
US$105.7bn
invested
6,512
deals
1H 2019
0.3%
Southeast Asia, US$6bn
§ 25.8% of capital invested
§ 47.3% of deals funded
Note: % by capital invested
Source: KPMG, CentoVC, Pitchbook
Asia investment is slipping
both in absolute dollars and in
relative terms, but Southeast
Asia is roaring forward

20. Capital into SEA at record pace, with 2018/19 igniting region
Source: CentoVC
$463
$1,236
$1,869
$3,511
$5,370
$11,928
$5,993
96
212
410
358
390
360 332
0
50
100
150
200
250
300
350
400
450
0
2000
4000
6000
8000
10000
12000
14000
2013 2014 2015 2016 2017 2018 1H19
Investment Deals
Increased investment,
fewer deals
Shift to later stages,
larger check sizes
Mega-rounds are the
new normal

21. While fund creation in Asia shows signs of slowing in 2019…
Source: KPMG, Pitchbook
$5.2
$2.4
$6.8
$23.4
$14.9
$11.3
$14.3
$6.9
84
34
61
76
68
68
54
33
0
10
20
30
40
50
60
70
80
90
$-
$5.0
$10.0
$15.0
$20.0
$25.0
2012 2013 2014 2015 2016 2017 2018 2019 (to Q3)
Capital raised Fund count

22. …and average fund sizes coming down after a 2015 peak…
Source: KPMG, Pitchbook
$62
$71 $111
$308
$219
$166
$265
$209
2012 2013 2014 2015 2016 2017 2018 2019 (to Q3)
0
50
100
150
200
250
300
350
Avg fund size (US$mn)
Average fund size of US$209mn
still 2x larger than funds formed
just 5 years earlier

23. …SEA will remain an active funding market over the next decade
150
150
150
175
200
200
210
230
250
360
100
100
100
100
100
100
120
125
135
135
Source: MDEC, Digital
Ventures research
Southeast Asia’s top 20 funds mobilized US$3.2bn in the the 24 months ending 2018.The entry of China funds and
US CVCs promises to infuse the region with yet more capital

24. Explosion of CVC formation & investment in ASEAN
Source: Crunchbase
7
9
12
18
14
31
41
37
57
1
7 8
16
21 26
52
45 50
0
10
20
30
40
50
60
-
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016 2017 2018
# of CVCs # of deals
Number of funds up 8x
Number of deals up 50x

25. Surge in early stage funding alleviates fear of seed funding gap
Source: CentoVC
65%
61% 62%
55%
44% 46%
56%
25%
28% 27%
29%
41%
32%
28%
6% 7% 7%
7% 10%
12%
8%
5% 5% 4%
8% 6%
10% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 1H19
Pre-A A B C or later
Southeast Asia deal share by series (% deals closed)
Series C/D
funding gap
may hinder
paths to scale
and exit

26. Southeast Asia’s Investment & Growth Opportunities

27. ASEANVC funding heavily concentrated in Indonesia & Singapore
Indonesia
Singapore
Malaysia
Thailand
Vietnam
Philippines
Share of deals
done by
country (2018)
= 337
Share of capital
invested by
country (2018)
= US$11.1bn
75%
16%
4%
2%3%
0.8%
34%
11%
35%9%
8%
3%
Source: CentoVC

28. Ride-hailing super-apps dominate ASEAN’s diverseVC funding scene
50%
18%
7%
4%
9%
10%
1%
60%
23%
10%
4%
1%
1%
2%
Multi-vertical
Retail
Finance/real estate
Automation/logistics
Media/content/entertainment
Travel/health
Other
2017 2018
Source: CentoVC, DigitalVentures

29. Mega-rounds in Southeast Asia are the new normal
1.9
1.1
4.8
1.2
0.1
1.4
0.2
0.3
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Non-mega Mega
US$ Bn
Source: MDEC, JungleVentures

30. Early funding into SEA gravitated towards e-commerce & fintech
5.9
6.9
10.9
26.6
Transport
Online media
services
E-commerce
Online travel
Revenue or GMV, 2017 (US$bn)
180
80
Unmet electronic payments needs Informal credit market
Source: Google, Temasek, BCG, UOB, Digital Ventures
Fintech market opportunity in Indonesia,
Philippines, Cambodia, Myanmar (US$bn)
Online payment methods

31. Huge TravelTech opportunity in a US$121b SEA travel market
Europe
Asia (non-SEA)
Southeast Asia
Americas
Africa
Middle East
International
Tourist Arrivals in
2018 = 1.4b people
Avg annual growth
from 2010-18 =
5.0%
International
Tourist Receipts in
2018 = US$1.45t
2018 YoY change =
4.4%
39.3%
(4.9%)
20.2%
(8.7%)
2.6%
(1.6%)
9.8%
(4.7%)
5.0%
(4.2%)
23.0%
(0.3%)
15.6%
(5.9%)
9.2%
(7.8%)
50.7%
(4.8%)
15.4%
(4.6%)
4.8%
(3.6%)
4.3%
(0.9%)
Source:World Tourism Organization (UNWTO)
Fintech, food, entertainment/adventure & health/wellness offers cross-disciplinary opportunities with other tech verticals

32. SEA’s Islamic Economy is an enormous, untapped opportunity
SEA’s 242m Muslims are both potential value creators and beneficiaries of the Islamic economy over the next decade
Source:Thompson Reuters “State of the Global Islamic Economy Report 2018/19”

33. Exit Environment

34. SEA still accounts for only 7% of global startup exits
Source: Golden GateVentures, INSEAD
32
40 37
49 67
66
129
153
124
151
8
19
14
36
15
9
16
10
7
7
-
20
40
60
80
100
120
140
160
180
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F
Acquisition IPO
Trade sales/acquisitions
are the dominant route
to liquidity

35. By 2025, SEA will still account for only 7% of global startup exits
428
320
616
24
14
22
52
121
-
100
200
300
400
500
600
700
800
2017-19 2020-22F 2023-25F
Acquisition IPO Secondaries
Source: Golden GateVentures, INSEAD
759 exits in
SEA = 7% of
global startup
exits

36. ASEAN’s 1st two public unicorns have produced mixed results…
§ Singapore mobile gaming company Sea listed on the
NYSE on October 20, 2017 (1st SEA tech unicorn to
achieve public exit)
§ Valuation at IPO was US$4.9bn, representing a 14.2x
multiple on US$354mn in revenue
§ Singapore gaming hardware startup Razer listed on the
HKSE on November 13, 2017 (2nd SEA tech unicorn to
achieve public exit)
§ Valuation at IPO was US$4.4bn, representing a 15.1x
multiple on US$292mn in revenue,
Source: Digital Ventures research
Sea Ltd.
NYSE: SE
Razer Inc.
HKG: 1337

37. …but the region’s next 12 are ready with bigger stories & valuations…
Note: *NE = non-exhaustive and in no particular order
Source:Tech in Asia, DealStreetAsia, CapitalIQ, Crunchbase,Tracxn, North Ridge Partners
…with another
100-500 startups
positioning
themselves for
breakout growth
or attractive
exits

38. 38
Paul Ark
polapat.a@dv.co.th