While Silicon Valley may be renowned as the technological capital of the world, it continues to face intense competition from London’s ‘Silicon Roundabout’ and various regions in Southeast Asia.
In fact, the last decade has been one of the most rewarding periods for Asia’s tech startup scene in history, with the region benefitting markedly from renewed investment activity and sustained commercial innovation.
But why are tech startups starting to thrive in Asia, and what can we expect from the region in the future?
Why are tech startups rising in popularity?
It’s clear that Asia is home to a young and increasingly vigorous tech startup scene, which continues to take the global markets by storm.
According to the data collated by the McKinsey Global Institute in 2019, more than one-third of the world’s best startups are based in Asia. More specifically, 119 of the best 331 global startups call Asia their home, with a whopping 91 based in China.
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A further 13 such startups are based in India, with six located in South Korea and four in the region of Indonesia.
The question that remains, of course, is why are startups rising in popularity in the region? One reason is the proliferation of technological advancement, which has made innovations increasingly accessible to aspiring entrepreneurs and made it easier than ever to create flexible revenue streams.
In nations such as China, startups are also able to access huge levels of venture capital and funding, as investors continue to support the growth of evolving small-cap stocks.
China alone accounts for an estimated 20% of global venture capital, with investment levels continuing to skyrocket as Asia’s tech hub thrives.
The rise of digitisation and government support
There are other reasons for the growth of Asia’s tech startup market, of course, with the sustained digitisation of the region’s economy offering a relevant case in point.
Make no mistake; proactive digitisation and a desire to adapt the very latest technology has played a huge role in Asia’s marked tech growth, as companies continue to evolve their models and modes of operation.
This has also been enabled by increased government investment in tech growth and infrastructure, especially in countries such as Singapore.
Here, we’ve recently seen a $300 million injection by the government into its Startup SG Equity for deep-technology operations, which are based on substantial scientific advances and high-tech engineering innovations.
Over in Hong Kong, the government has also approved its first ever large-scale crypto fund, which aims to capture $100 million in digital investment in its first year.
This is indicative of a progressive and tech-driven government, and one that creates incredible opportunities for startups across the Asian region.