Tech start-ups see Asia as new Silicon Valley
While it is common for Australian start-ups to head to Silicon Valley, to chase funding and growth opportunities, an increasing number of innovators are looking to Asia.
Asian markets are growing wealthy more rapidly than anywhere else. The Brookings Institute says Asia will host 64 per cent of the global middle class by 2030.
While that future still seems distant, recent years have seen the emergence of a number of Asian incubators and investors.
Singaporean investment company Jungle Ventures has made 16 investments in companies stretching from India to New Zealand. Founder Amit Anand said he was interested in businesses that could grow quickly across the region.
"Everybody thinks that Silicon Valley is where the big markets are," Mr Anand said. "But south-east Asia is starting to prove a very attractive market. If willing entrepreneurs commit themselves, there is a lot of opportunity to be unlocked.
"Our hypothesis is that Asia, and particularly south-east Asia, is going to see a lot of $100 million-plus companies being made on various opportunities in internet, mobile and biomedical and so forth."
Some markets are more developed than others. Chief executive officer of the Merah Putih Incubator (MPI) in Indonesia Antonny Liem said that while his country had massive potential, internet penetration was still only 18 per cent.
"In Indonesia the internet is still very young, and it is hard to look at the exit horizon for return-on-investment, and IPO is definitely not on the horizon," Mr Liem said. "So if you talk about Indonesia, it is all about market size, about untapped potential, and it is a question of timing."
Sydney-based outsourcing service Airtasker is competing for a spot at Echelon. Founder and chief executive Tim Fung said that the opportunity in Asia was massive.
"That said, the US is quite a big market right now and is probably closer to Australia culturally, and of course language-wise," Mr Fung said. "Asia seems to also have a little less market competition in many segments, compared to the flood of companies in the US."
Similarly the co-founder of smartphone taxi dispatch and payment platform goCatch, Ned Moorfield, said while Asia met his criteria of having a large number of highly populated cities with huge volumes of taxi trips, the lower penetration of credit card ownership presented a challenge.
"Rolling out into these markets will require integrating local payments providers into the app," Mr Moorfield said.
Frequently Asked Questions about this Article…
Echelon Ignite was a Sydney pitch contest where 11 Australian technology start-ups competed for a spot to present at the Echelon conference in Singapore on June 4. For everyday investors it highlights where early-stage innovation and deal flow are happening, and signals growing investor interest in Asia as an alternative growth market to Silicon Valley.
The article explains that Asia—especially south-east Asia—is rapidly building wealth and market scale. Investors and incubators in the region are multiplying, and founders see faster regional expansion opportunities. Jungle Ventures' founder Amit Anand noted south-east Asia is proving an attractive market where fast-growing, large-scale companies can be built.
The article cites the Brookings Institute estimate that Asia will host 64% of the global middle class by 2030, and Jungle Ventures’ Amit Anand predicts the region will create many $100 million-plus companies across internet, mobile and biomedical sectors—signalling substantial consumer and investor opportunities for everyday investors watching growth trends.
Asian incubators and investors are actively funding and scaling start-ups across the region. Jungle Ventures, for example, has made 16 investments across markets from India to New Zealand and looks for businesses that can grow quickly regionally—making them important partners for founders and a source of deal flow for investors tracking the region.
The article points out market development gaps such as Indonesia’s low internet penetration (about 18% per Merah Putih Incubator’s Antonny Liem). That means longer timelines to exits, limited near-term IPO prospects, and a need to focus on market size and timing rather than quick returns—important risk factors for investors to consider.
Airtasker’s founder Tim Fung said Asia offers massive opportunity and often less competition in many segments compared to the US. However, he also noted the US can be culturally and linguistically closer to Australia. For investors, this highlights strategic trade-offs founders make when choosing target markets.
goCatch co‑founder Ned Moorfield noted that while Asia has densely populated cities and high taxi trip volumes, low credit card penetration creates payment challenges. Rolling out in these markets often requires integrating local payments providers into apps—an important execution risk investors should watch.
The article suggests south‑east Asia is becoming an attractive growth region due to rising middle-class populations, emerging local investors and incubators, and room for large internet and mobile businesses to scale. Everyday investors can view this as a trend to monitor for new venture activity and cross-border investment opportunities, while being mindful of market-specific risks like payment infrastructure and internet penetration.
Call 1300 880 160
Start a chat
Schedule a call
