talk in manila: asia's tech startup ecosystem - the good and the bad

Asia‘sTechEcosystem:TheGoodAndTheBad

BySerkanToto,PhDwww.serkantoto.com

Imagecredit:TechInAsia

AboutMe

• Tokyo‐basedweb,mobileandgaming industryconsultant

• AdvisorforstartupsinJapanandtheUS• JapancontributorforTechCrunch.com

• Personalwebsite:www.serkantoto.com

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Agenda

I:Asia’sStartupEcosystem:TheGoodII:Asia’sStartupEcosystem:TheBad

III:PerspecJves

I: Asia’s Startup Ecosystem: The Good

Asia:No.1WebPopulaJon‐>MorethanAmericaandEuropecombined.

Asia:No.1WebPopulaJon‐>MorethanAmericaandEuropecombined.

Asia:WeakInInternetPenetraJon‐>Worldwide,justAfricaisbehindAsia.HugepotenJal.

Source:ITU(Interna9onalTelecommunica9onUnion)

Asia:MobileIsBig‐>11ofthetop20mobilenaJonsareinAsia.

Source: Wikipedia

Asia:InternetTrafficToExplodeBy2015‐>APACtoovertakeNorthAmericainmonthlywebtrafficin2015.

Source:Cisco,PennOlson

KeyTake‐aways

•  HugeInternetmarketwithbigfuturepotenJal•  Verymobile‐centriccountries

•  Internetusage(fixedandmobile)toexplodeinthenextyears

“Asianscanonlyclone!”Isthistrue?

Image source: http://www.flickr.com/photos/yamagatacamille/4267887034/

Insead‘sGlobalInnovaJonIndex2011‐>AsiaisdoingOK.

Example1:MobileWeb(Japan/1999)‐>NTTDocomokickstartedthemobilewebwithi‐mode.

Example2:OnlineGaming(Korea/1996)‐>Nexon‘sTheKingdomoftheWindsisthefirstMMORPG.

Image source: Gamespot

Example3:VirtualGoods(Korea/1999)‐>Cyworldpopularizedvirtualitemsinsocialnetworks.

Example4:E‐Publishing(Japan/2006)‐>SonywasfirsttomarketwiththePRS500e‐reader.

Example5:Broadband(SK,HK,JP/1998)‐>94%broadbandpenetraJoninKoreain2000.

Image source: Tech In Asia

Example6:InternetOfThings(Japan/1994)‐>ToyotasubsidiaryDensoWaveinventedQRcodes.

Image source: Asiajin

Example7:MobileSocialGaming(Japan/2006)‐>Japan‘ssocialgamingmarketwillhitUS$2.5billionin2011(JPMorgan).

SelecJonOfInnovaJveAsianStartups

WhatCanBeDoneInAsia‘sWebScene?‐>Biggestproblem:underdevelopedecosystemsinAsia.

•  low number of QUALITY startups

•  few competent VCs firms/angel investors

•  low propensity of talents to work for

startups

•  few people with an entrepreneurial

mindset

•  historically, culturally, and economically

diverse markets

•  much lower online spend than in North

America or Europe

•  problematic role of government/

regulations

•  weak exit environment (IPOs, trade sales)

•  political and legal problems in some

South East Asian countries (IP protection,

bureaucracy for startups, general political

instability)

•  massive “brain drain”

•  still low Internet penetration

•  fragmented mobile landscape

•  underdeveloped online and mobile

payment infrastructure (if any)

•  high web access/data costs

Thankyouforlistening!Ques9ons?

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