Keynote Presentation at Project Kairos Asia 2018. https://tmt.knect365.com/project-kairos-asia/speakers/michael-kwok

1. What makes Asia the place
to be for Startups?
Presented by Michael Kwok
linkedin.com/in/kwokmichael@micdailo
20 September 2018

2. Asian Startup Hubs
Mainland China (Beijing, Shanghai, Shenzhen)
Taiwan (Taipei)
Hong Kong
South Korea (Seoul)
Japan (Tokyo)
Singapore
Malaysia (Kuala Lumper)
Indonesia (Jakarta)
India (New Delhi, Bengaluru)

3. Excessive Liquidity in China
Money Supply (M2)
USDTrillion
0
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
US (FED) China (PBoC)
$25.8T
$13.8T
$7.4T
$5.5T

4. The China Factor

5. Latest Global Funding Q2 2018
$6.3B
+27.5%yoy
Europe
KEY TAKE-AWAY
Asia saw a huge increase in funding, where it more than doubled and reached a total of $28.9B in Q2 2018.
Half of it was raised by Ant Financial with €14B. Funding in Rest of the World grew massively due to
Block.one’s ICO of $4B.
$21B
+25%yoy
North America
$5.4B
+485%yoy
Rest of World
$28.9B
+101.8%yoy
Asia
Source: FunderBeam

6. Top 5 Global Deals Q2 2018 - All Asia
Source: DealStreetAsia, Crunchbase
Headquarters Business Stage Deal Value (USD) Leading Investors
Guiyang,
China
Truck Logistics Private 1.9B
SoftBank, Sequoia China,
Lightspeed China
Partners
Singapore Ride Hailing, Ride Sharing Series H 1B Toyota
Shenzhen,
China
Robotics Series C 820M
Tencent, Green Pine
Capital, CDH Investments
Shanghai,
China
Bike Sharing Series E 700M
Ant Financial, Fosun
International
Beijing, China AI, Facial Recognition Series C 620M
Tiger Global
Management, Fidelity
Investments, Qualcomm
Ventures

7. Developers are Less Costly
Mobile App Developer Median Annual Salary (2018)USD
0
20,000
40,000
60,000
80,000
US Hong Kong Singapore India
4,968
34,84433,617
71,898
Source: PayScale

8. And More in Asia Too
Est. No. of Software Developers By Region (2017)
0
2,500,000
5,000,000
7,500,000
10,000,000
America Regions EMEA Asia Pacific
9,470,000
6,760,000
4,800,000
Source: IDC
China and India are
responsible for 31.5%
of the world's total
developer population.

9. 1.38B population
775M smartphone users
China
1.34B population
387M smartphone users
India
Asia has 2 Largest (Fin)Tech Market
USD5.5T USD112B50x
US Digital PaymentChina Digital Payment
National Digital Identity System
1.22B Holders
Links to Banks, Payments,
Transportation, Private Sector (Skype)

10. FinTech 100: Top 3 are Chinese
China, China, China
First, second and third place, on this year’s Fintech100, are
occupied by Chinese fintech firms. These firms are
continuing a trend that is several years in the making and
highlights the extraordinary rise of the fintech industry in
China.
Asia Pacific On the Rise
30 companies from the region feature on the list, many of
these in the 'Emerging 50', including 10 companies from
Australia. This evidences a regional focus on the fintech
sector and it reflects the explosion of fintech startups
across the region.
Source: KPMG

11. FinTech Sandboxes
MAS Regulatory Sandbox (since November 2016)
Encourages more FinTech experimentation so that promising
innovations can be tested in the market and have a chance for
wider adoption, in Singapore and abroad. The regulatory
sandbox will enable FIs as well as FinTech players to experiment
with innovative financial products or services in the production
environment but within a well-defined space and duration.
Fintech Supervisory Sandbox (since September 2016)
Allows banks and their partnering technology firms (tech firms) to
conduct pilot trials of their fintech initiatives involving a limited
number of participating customers without the need to achieve
full compliance with the HKMA's supervisory requirements.

12. Blockchain, Cryptocurrency and ICO
United States
SEC Heavily
Regulated
Quite a lot of cases
investigations and
class actions
China
Blanket ban on ICOs,
ask for refunds
Blanket ban on crypto
exchanges
Singapore
“Capital market
products” will be
regulated by MAS
3 of the top 10 ICOs
in Q1 2018
Hong Kong
Highly monitored, one
case treated as
securities and refunded
3 of the top 10 ICOs in
Q1 2018
Thailand
New Regulation to
Recognize ICO
Tokens into a brand
new Digital Asset
Class in May 2018

13. Blockchain, Cryptocurrency and ICO
Malaysia
Malaysian Bank
Negara is working on
couple of
cryptocurrency
guidelines
Philipines
SEC has published a
set of draft rules for
regulating ICO for
public review
Japan
The Financial Services
Agency is looking at
regulations that may
help to strengthen
AML/KYC protections
for altcoins
South Korea
National Assembly
discusses ICO ban
and ‘Blockchain
Island’ since May
2018
India
Regulations will likely
come by end of 2018
Considering launching
crypto tokens for
financial transactions
in the country

14. AI, BigData and Robotics

15. Regional Startup Communities
China
Hong Kong
Singapore
Malaysia

16. Wrapping Up
Resources Government
Communities Ourselves
Remains one of the most cost-
effective area for software
development.
Numerous regional startup
incubators, accelerators,
competitions and events across
different countries and sectors.
Still wary of Cryptocurrency and
ICOs, but keen on Blockchain and
FinTech. New regulations and
innovative frameworks are coming.
MOST IMPORTANT FACTOR

17. Asian Unicorns at a Glance

18. Let’s Keep In Touch
linkedin.com/in/kwokmichael
@micdailo