future asia ventures 2016 outlook final
TRANSCRIPT
Page 2Copyright 2015 Future Asia Ventures
Disclaimer
Future Asia Ventures has made every effort to use reliable, up-to-date and comprehensive information and analysis, but all
information is provided without warranty of any kind, express or implied. Some of the information used in preparing these
materials was obtained from third party and or public sources. Future Asia Ventures and Falguni Desai assume no responsibility
for independent verification of such information and Future Asia Ventures has relied on such information being complete and
accurate in all material respects. We disclaim any responsibility to update the information or conclusions in this report.
Future Asia Ventures and Falguni Desai accept no liability to you or any third party for any loss arising from any action taken or
refrained from, or any reliance placed on, or use of, the information herein by you or any third party, howsoever arising, as a
result of information contained in this report or any reports or sources of information referred to herein, or for any
consequential, special or similar damages even if advised of the possibility of such damages.
Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without
notice. This information is provided with the understanding that with respect to the material provided herein, you will make
your own independent decision with respect to any course of action based on your own judgment, and that you are capable of
understanding and assessing the merits of a course of action.
Neither the information, nor any opinion contained herein, constitute a solicitation or offer by Future Asia Ventures or Falguni
Desai to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
Future Asia Ventures and Falguni Desai does not purport to, and does not, in any fashion, provide broker/dealer, investment
advisory or any financial advisory services. Future This information has been prepared solely for informational purposes. This
report is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional
accountants, tax, legal or financial advisers.
No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Falguni
Desai or Future Asia Ventures. By accepting this material, you acknowledge, understand and accept the foregoing.
Page 3Copyright 2015 Future Asia Ventures
Media & Distribution Partners
www.mattermark.com
www.singaporefintech.com
http://summit.ourcrowd.com www.fintechcircle.com
www.dealstreetasia.com
Europe's 1st Angel
Network Purely
Focused on FINTECH
We help dealmakers
identify valuable
opportunities
Page 4Copyright 2015 Future Asia Ventures
Table of Contents
• Executive Summary
• Global Overview
• Asia Overview
• FinTech Overview
• 2016 Outlook
• Index: Corporations List
Page 5Copyright 2015 Future Asia Ventures
Executive Summary
Large corporations continue to see the value of engagement with startups to enable innovation. In 2015, 31
new corporate accelerators were launched bringing the total to 85 corporate accelerators worldwide.
Many companies are launching their accelerators in cross-border locations away from headquarters. Some
are expanding their existing accelerator programs to new cities abroad. Europe leads the world with 40
corporate accelerators, while Asia Pacific has 18.
Of the 18 Asia Pacific corporate accelerators, 10 launched in 2015. The region has strong startup and
accelerator ecosystems in Hong Kong, Singapore and Bangalore. Kuala Lumpur is poised to become a key hub
city for startups as government support and private funding continue to increase.
By sector count, technology and financial services lead the corporate accelerator count. FinTech focused
accelerators make up 16 of the total programs. The FinTech sector, which has a long history, continues to
evolve with new players in mobile wallets, payments, lending and the block chain.
As corporate innovation programs continue to see popularity, accelerator programs are likely to increase
with new launches and cross-border extensions. Corporations are also expected to try new formats which
don’t involve equity ownership, as they look to engage more broadly with startups.
Page 7Copyright 2015 Future Asia Ventures
1 13
12 13
24
31
2009 2010 2011 2012 2013 2014 Dec 12015
2015 witnessed a “fever pitch” level of 31
new accelerator launches.
Number of Corporate Accelerators Launched Each YearWhat’s Happening in 2015?
Existing accelerator programs are
launching in other cities, creating
an expanded geographic footprint
for engagement with startups.
As Europe and Asia experience a
growth in their venture and
startup ecosystems, more
companies in those regions are
beginning to launch programs.
Several startups gained “unicorn”
status as their valuations reached
beyond the $1 billion mark. This
has led large corporations to take
notice of potential disruptors.
Source: Company Websites and Florian Heinemann Accelerator website www.corporate-accelerators.net
Corporate Accelerator Launches Reach “Fever Pitch” in 2015
Page 8Copyright 2015 Future Asia Ventures
2015 is a Strong Launch Year for All Regions
1
2
7 7
10
1 1 1
8
5
13
11
1
2
1
4
10
2009 2010 2011 2012 2013 2014 Dec 1 2015
Americas
EMEA
APAC
Number of Corporate Accelerators Launched Each Year by Region
Page 10Copyright 2015 Future Asia Ventures
27 40 18
Corporate Accelerators by Region
85 Corporate Accelerators Worldwide, With Europe in the Lead
The global corporate accelerator count stands at 85. The US has historically been the strongest
venture and startup economy, however in recent years, Europe has built up vibrant ecosystems.
Germany and the United Kingdom, the top countries, both have 10 accelerators each. In Asia, 18
corporate accelerators exist, 10 of which were launched in the current year in key hub cities like
Singapore and Hong Kong.
Around the World
Page 11Copyright 2015 Future Asia Ventures
Technology & Financial Services in the Lead
Technology, 19
Financial Services, 16
Media, 13
Consumer, 6
Health, 6
Telecom, 6
Education, 4
Internet of Things, 3
Travel &
Entertainment, 3
Cross Industry, 3
Retail, 3Logistics, 1
Energy, 1
Real Estate, 1
Corporate Accelerators by Sector Focus
Page 14Copyright 2015 Future Asia Ventures
Asia Pacific’s 18 Corporate Accelerators
Hong Kong
• DBS – Financial Services
• AIA – Digital Health
• blueprint by Swire Properties – Enterprise Software
• Infiniti – Smart Cities & Internet of Things
• SuperCharger – Financial Services
Kuala Lumpur
• Tune Labs – Technology
• Telekom Malaysia - Telecom
Singapore
• Singapore Press Holdings – Media
• Telstra Muru-D – Cross Sector
• Unilever Foundry – Consumer
• AIA-Konica – Digital Health
Sydney
• Telstra Muru-D – Cross Sector
Bangalore
• Tlabs - Media
• Target – Retail
• Pitney Bowes - Technology
• Microsoft Ventures - Technology
Beijing
• Microsoft Ventures - Technology
Asia Venture Funding $B
$18
$25
$0
$5
$10
$15
$20
$25
$30
2014 Q1 - Q3 2015
Source: Venture funding data provided by Thomson Reuters
Melbourne
• National Australia Bank Labs – Financial Services
Page 15Copyright 2015 Future Asia Ventures
3 Ways Asia Can Create Its Own Startup Narrative
Asia is at a critical inflection point. The region has seen a swell of new programs and venture funding
which supports startup growth. While the U.S. ecosystem has been obsessed with unicorns and large
valuation rounds, Asia has a chance to shape its own conversation on startups. Asia’s startup hubs can
promote a more meaningful business dialogue about the risks and rewards of entrepreneurship. Here
are three considerations:
Founders should be encouraged to
announce their revenues and talk
about the number of units sold or
customers gained. Everyone in the
ecosystem benefits when this
information is shared more
regularly. Founders and investors
can quickly identify risks and
opportunities. Valuation and
funding rounds can be the earned
metric rather than the sole focus on
venture related media coverage.
As startups form, gain traction, and
overcome hurdles, founders should
be encouraged to share their
stories in real-time. When startups
share these stories, others don’t
have to repeat the same mistakes.
From this, a stronger, more
informed and educated ecosystem
emerges, creating a true
community, benefiting the
employees, customers and
investors.
The startup failure rate is high,
estimated at 90% in some cases.
When the media shames founders
for failures, the picture is distorted.
Failed startups quietly hide away
never telling anyone what
happened. Meanwhile successful
startups receive an undue amount
of attention. If journalistic coverage
of these failed companies can be
handled with curiosity and respect,
a more objective narrative can
emerge.
Announce Metrics Share Lessons Learned Remove Shame
Page 16Copyright 2015 Future Asia Ventures
Asia Pacific’s Next Hotspot?
Malaysia’s Startup Ecosystem
In recent years, Malaysia has been building up a thriving startup
sector with several government funded and privately funded
programs.
Key Statistics
85+ venture capital firms
750+ startups
Accelerator Programs
1337 Accelerator
MaGIC ASEAN Accelerator
MaGIC Distro Dojo Accelerator with 500 Startups
MaGIC Social Enterprise Accelerator
MSC Malaysia Startup Accelerator Lite
Telekom Malaysia Innovation Exchange (corporate)
Tune Labs (corporate)
Key Events
2015 – MaGIC launches ASEAN Center for Entrepreneurship
2015 – MSC status for startups (tax exemptions, incentives)
2014 – MaGIC established
2014 – Plans begin to transform Cyberjaya into Global Tech Hub
Source: TechinAsia, F6S.com, MaGIC, The World Bank
Malaysia Facts & Figures
• Govt: Federal Constitutional Elective Monarchy
• Country Population: 31 million
• Greater Kuala Lumpur Population: 7.5 million
• Kuala Lumpur City Population: 1.5 million
• Country Annual GDP Growth: 6.1%
Kuala Lumpur – Malaysia’s Startup Hub
Map of Southeast Asia
Page 19Copyright 2015 Future Asia Ventures
What is FinTech?
The FinTech sector is made up of 8 categories:
1)Peer-to-peer lending platforms
2)Payments & mobile wallet apps
3)Equity crowd funding platforms
4)Robo-Advisor platforms
5)Blockchain enabled software
6)Financial data analytics software
7)Brokerage & trade systems
8)Treasury & financial risk systems
FinTech Defined
Peer-to-Peer Lending Payment & Mobile Wallets
Block chain / Bitcoin Data Analytics
Equity Crowd funding Robo-Advisors Brokerage & Trade Treasury & Financial Risk
Consumer Focus Enterprise Focus
FinTech Definition:
A portmanteau of the words financial and technology
used to refer to both enterprise and consumer focused
apps and software which are used in financial services
transactions, record-keeping and analysis.
The term is often used to describe the recent boom in
startups focusing on such technologies, however,
financial technology has been developed and used by
firms and individuals for several decades and continues
to evolve.
Page 20Copyright 2015 Future Asia Ventures
Dynamics in the Global FinTech Arena
As with most sectors, regional differences exist. The US and Europe have a strong mix of startups in almost all of the subcategories
of FinTech. In Asia, however, the sector has the potential to make a meaningful impact by improving financial access and financial
inclusion for certain populations. Unbanked and under-served populations are creating demand for efficient and tech-enabled
lending and payment tools.
A Unique Snowflake
East West Divide
“While FinTech is currently gaining a lot of traction globally, it is important to recognize that the various geographies have
different drivers in their respective ecosystems. FinTech in developed economies in Europe and the US come from a basis of
innovation and adding value, while FinTech in developing economies in Asia are propelled by a critical need to address pain
points which are acutely felt in their respective economies.”
-Gerben Visser, Cofounder & Managing Partner, Singapore FinTech Consortium
In many ways, the Fintech sector differs from other startup categories. The financial services sector is highly regulated, with rules
that aim to protect the investing public and prevent systemic risk or fraud. Tech-enabled financial services startups must pass the
same regulatory scrutiny as traditional players, creating a longer timeline for launching in each jurisdiction.
For example, in the US alone there are 10 regulating bodies which oversee different segments of the financial system. Each state
also has its own banking authority. As such, entrepreneurs in this sector tend to be more experienced and domain sector experts,
compared to other tech sectors.
Page 21Copyright 2015 Future Asia Ventures
Voice of the FinTech Entrepreneur
"I've learned you should only work with people you can trust and
that even small gaps in trust between people must be surfaced
and dealt with quickly. Startups need to be able to make decisions
and move much faster than larger businesses, and this requires
trust.“
- Tommy Nicholas, CEO (USA)
“Hiring the right people is the most crucial thing in a start-up.
Apart from skills, I only look for two traits: the ability to execute &
the constant eagerness to learn.”
- Nicolas Christaen, CEO (Belgium)
”I realized after founding Datavore that it's not as simple
as having an innovative approach - that's a good start but what's
more important is the ability to get buy in from others or to run
with it yourself. Ultimately, without execution it doesn't matter
how great your idea is."
- Jake Perlman-Garr, CEO (USA)
“The key is to create buzz, and to start doing it long before you
look for funding. Whilst it's tempting in the early days to keep
your plan under wraps - because you're in 'stealth' mode or
you're not even sure it is the plan yet - my recommendation is to
beware being too cautious.”
- Elly Hardwick, CEO (United Kingdom)
FinTech Startup CEOs Share Their Insights and Advice on Entrepreneurship
Page 22Copyright 2015 Future Asia Ventures
Voice of the FinTech Entrepreneur
"Being a CEO has been very humbling. You need to open yourself
up to stakeholders and mentors and be very vulnerable to get
good feedback."
- Shaheen Kanda, CEO (USA)
“For us, our shared vision, shared values and communications
systems are critical. They keep our globally dispersed and diverse
team aligned, motivated and coordinated.”
- Richard Eldridge, CEO (Philippines)
"Taking on this challenge has made me more appreciative and
made me a better businessperson. I've developed enormous
respect for those before me who have risked to create.“
- Ian Rosen, CEO (USA)
"You have to face the inevitable reality that building things
properly will take twice as long and be twice as hard as you were
originally anticipating. Eliminate any distractions that steer away
from reaching that all-important goal.“
- Mike Morris, CEO, Slide Network (USA)
FinTech Startup CEOs Share Their Insights and Advice on Entrepreneurship
Page 24Copyright 2015 Future Asia Ventures
The Future of Corporate Innovation
The Pursuit of Innovation
The pursuit of innovation has pushed large companies to launch
accelerators, incubators and hackathons. Some companies
succeed and others don’t. Why the disparity? How can companies
crack the code and reap the most benefits from these
investments? There are no easy answers, but there are a few
necessary elements.
The Elements of Innovation
First there must be a problem, an uncomfortable situation, an
inefficiency. Innovation cannot be motivated unless something is
broken. The old adage still holds, “Necessity is the mother of
innovation.”
Time and resources are important. Companies who want to
succeed in innovation must allow enough time. Innovation cannot
cater to quarterly earnings cycles. The answer comes to us when
we least expect it. And once this happens, companies need to fund
prototyping, testing and several variations before the final product
is rolled out.
But what leads us to these answers in the first place? Do
companies need to provide snacks, ping pong tables and racquet
ball courts? Do employees need massages and laundry service at
the office?
Unleashing the Potential Within
According to James Layfield, CEO of Central Working, “Physical
space and setting only make up 25% of creativity. The real key to
innovation and creativity is unlocking the potential within
someone.”
His company, which designs and leases space to corporations and
small startups, is delivering a new concept which he believes holds
the key. “We believe that community has collapsed in Western
societies, so we are creating a workplace environment that is
caring, helpful, even loving. We provide confidence and
community to make sure people succeed at work.” says Layfield.
Innovation takes place when a person can see the realities before
them clearly, without panic or stress. Old-fashioned command
and control style management doesn’t work in the innovation
arena. The environment that Central Working creates is one where
people feel listened to, encouraged, connected and ultimately
empowered. His staff and teams at the various spaces are
specially trained to evoke more open communication and support
people.
A person with time, resources and the motivation to create
something new won’t succeed until the human side is addressed.
Companies that can provide this level of support for their
innovation teams are on the right path.
Page 25Copyright 2015 Future Asia Ventures
The Future of Accelerators
Large companies around the world are beginning to draw valuable ideas for new products and services,
while supporting younger startups in the process. Accelerators have become the defacto program for
companies that want to interact with startups. They provide a structured environment for both parties to
explore and learn. In the coming year, we expect to see companies expanding and augmenting their
accelerators to increase their level of engagement.
As more accelerator programs launch, attracting the
best entrepreneurs and startups will become
competitive. Companies will need to increase their
touch points with startups through new formats.
We will likely see corporations using the following types
of programs to engage with more startups without
equity ownership:
Business plan competitions
Crowd sourcing
Hackathons
Mini labs
Paid product pilots
The largest companies with accelerator programs are
likely to want access to ecosystems in other regions.
Several technology and financial services players are
beginning to launch multiple city accelerator programs.
This allows them to interact with mobile first markets,
different socio-economic pools and growing talent
bases. Hot spots for cross-border corporate accelerator
launches:
Global Hubs: Emerging Hubs:
Hong Kong Bangalore
London Berlin
New York Tel Aviv
Silicon Valley
Singapore
New Innovation Formats Cross Border Launches
Page 27Copyright 2015 Future Asia Ventures
Index: Corporations List
Singapore Press HoldingsIntel Corp
YLESamsungIngram Content Group
YandexQualcomm IncING Group
Yahoo!PWCInfiniti
William Hill plcProSiebenSat.1 MediaImmobilienScout24
Wells Fargo & CoPitney Bowes IncIBM
Walt Disney CoPearsonErnst & Young
Virgin MediaPCH InternationalE.ON SE
Unilever plcOrangeDPD UK
Tune GroupNordea Bankdpa
TravelportNikeDonnelley
Times of IndiaNational Australia BankDeutsche Telekom AG
TelstraMondelez InternationalDentons
Telenet Group HoldingModern Times GroupDBS Group Holdings Ltd
Telekom MalaysiaMicrosoft VenturesCoca-Cola Co
TelefonicaMETRO AGCitrix Systems Inc
Telecom ItaliaMasterCardCitigroup Inc
Techno GymLa PosteCisco Systems Inc
Target CorpL BrandsBNP
blueprint by Swire PropertiesKaplanBBVA
Standard CharteredJohn LewisBBC
SprintIPG Media LabsBayer
Note: Some companies have launched multiple accelerators so count may not total 85
Page 28Copyright 2015 Future Asia Ventures
Non-Profit Showcase: Ocean Recovery Alliance
www.oceanrecov.org
Ocean Recovery Alliance is focused
on innovative programs,
collaborations and awareness
building which help restore the
health of the ocean.
A non-profit organization, it is one
of the first to work with both the
United Nations Environment
Programme and The World Bank.
Page 29Copyright 2015 Future Asia Ventures
About Future Asia VenturesFalguni Desai is the Managing Director of Future Asia Ventures. She has
almost two decades of experience working globally at the intersection of
the financial services, SaaS and media sectors. She works with
multinational corporations and financial institutions to foster business
growth and launch innovation programs including accelerators,
incubators and other formats. Falguni holds a BS in Economics from The
Wharton School of the University of Pennsylvania.
Media & Business Inquiries:Falguni Desai
Managing Director
New York, NY