Asia Tech Research: Asia Matters 2/4 (Asian Startup Ecosystems)

the digital
frontier
REPORT
2
ASIATECH RESEARCH
Asian Startup
Ecosystems

#asiamatters ASIATECHRESEARCH
Graham D Brown
Report Author
Thanks for reading my #asiamatters
Report “Asian Startup Ecosystems”.To
learn more about what I do, and get
regular updates and insights from my
Asian research, connect with me on
Linkedin.
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Introduction

1. Risk Capital 2. Role Models 3.Accelerators
4. Events 5.Talent 6. Coworking Spaces City Data
What’s inside Part 2?
Introduction
You can click the image to jump there

Welcome back! In Part 1 we learned about how
Asia’s Megacities are the core engines of growth
ASIATECHRESEARCH

…from Megacity powerhouses like Shanghai
If you missed Part 1 of our
report you can get it free at
AsiaTech Podcast - click the
Asia Matters link in the nav
bar
ASIATECHRESEARCH

…to emerging hubs of innovation like
Shenzhen in the Chinese Greater Bay…
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Beyond SiliconValley itself, I believe that
the next Silicon Valley is…
undoubtedly China.
Shenzhen is just one of several cities in
China that blow other contenders for the
next SiliconValley out of the water…
The fact is, China’s tech industry is
evolving so rapidly, it catches
veterans off guard.
- Reid Hoffman, CEO Linkedin

In Part 2 we’ll learn which Startup Cities in Asia are getting it
right by unpacking our own analysis and data…
The goal wasn’t to analyse
which cities were the best
funding but, as we’ll discover,
measure the whole package a
city offers Startup talent.
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We’ll also look at
all of these

To rank Asian Startup Cities…
I included a wide set of data to offset
individual bias. Looking at 3 main
ecosystem surveys (including our
own) you can see big differences in
results.Take a look, for example, at
Beijing…

Aggregation of 3 major surveys shows significant disparities
Rankings of Asian Startup Cities
Beijing’s rankings
vary widely

So, to get a more complete picture,
I aggregated 14 key indices across the
15 Asian Cities ranking everything from
access toVenture Capital to Economic
Growth.
Here’s how it breaks down…

Startup city ranking based on aggregation of 14 key indices
ASIATECHRESEARCH
best
ASIATECHRESEARCHThe Startup City Ranking 2018

ASIATECHRESEARCH
The gold standard of
Asian Startup Cities
The 14 Indices
(see appendix for
detail)
Think of this as version 0.1
of the ranking.The goal isn’t
to create a scientiﬁc survey
but to get the #asiamatters
conversation started

Ranking #1
Score: 147
Singapore
Ranking #2
Score: 132
2
Hong Kong
Ranking #3
Score: 120
3
Shanghai
TheTop 3 Asian Startup Cities

Ranking #1
Score: 147
Singapore
Ranking #2
Score: 132
2
Hong Kong
Ranking #3
Score: 120
3
Shanghai
City Rank out of
the 15 cities in
this report

Ranking #1
Score: 147
Singapore
Ranking #2
Score: 132
2
Hong Kong
Ranking #3
Score: 120
3
Shanghai
Score based on
aggregation of 14
major startup
indices

While Singapore may not offer the scale of Shanghai
or the capital of startup cities like Beijing…

Singapore offers the most potential for 2018: access to ASEAN
combined with world class infrastructure and quality of life.

Startup Cities shouldn’t just be measured on the ability to raise
capital, but also the fact that founders have to live there too.

In a market place where both talent and capital are increasingly location
independent, Startup Cities need to compete on the whole package.

Chinese Startup Cities - Shenzhen, Beijing and Shanghai now
rank alongside SiliconValley in terms of capital…

But diminishing Outsize Returns combined with quality of life
mean China still represents a risk for external investment.

Here are some bonus visualisations of our
Startup City Ranking 2018

1. Singapore
2
2. Hong Kong
3
3. Shanghai
7. KL
8. Shenzhen
9. Jakarta
10. Bangkok
4. Seoul
5.Tokyo
6. Beijing
SingaporeH
ongKongShanghai
Seoul
Tokyo
Beijing
KL
Shenzhen
Jakarta
Bangkok
TaipeiBangaloreH
CM
C
Fukuoka
M
anila
68
81
90
98
106107107109113114116117120
132
147

Singapore
Hong Kong
Shanghai
Seoul
Tokyo
Beijing
KL
Shenzhen
Jakarta
Bangkok
Taipei
Bangalore
HCMC
Fukuoka
Manila 68
81
106
107
107
109
113
114
116
117
120
132
147
90
98
Tokyo
Taipei
Shanghai
Shenzhen
Hong
Kong
Bangkok
Bangalore
Kuala
Lumpur
Singapore
Jakarta
Seoul
Beijing
HCMC
Fukuoka
Manila
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Startup Cities should also be measured in terms of potential rather
than history.The following slides warn of an impending shift in Asia.

I was curious to ﬁnd patterns within this
data, so began cross-correlating
related sets, in search of visualizations.
This next slide tells a great story about
the evolution of Asian Startup Cities.

high growthlow growth
highstartup
density
lowstartup
density
(3) accelerating (4) crowded
(2) emerging (1) early
Ecosystems by growth by quadrant (bubble size = GDP of city)
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ASIATECHRESEARCHThe Startup City Matrix 2018

highstartup
density
lowstartup
density
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We’ll reference
The Startup City Matrix
throughout this report
In the next slide, we can see how
it breaks down by quadrant…

highstartup
density
lowstartup
density
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market plateaumarket momentum
front-running frontier
highstartup
density
lowstartup
density

The Startup City Matrix has
a signiﬁcant bearing on the nature of
local startup ecosystem.
For example, the availability and movement
of capital. Look at the next 3 slides - the
Matrix and how that’s reﬂected in the
news…

highstartup
density
lowstartup
density
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highstartup
density
lowstartup
density
movement of risk capital
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ChinaSEAsia
North East
Asia

2018 will see an increasingly aggressive push by Chinese Risk
Capital into South East Asia in search of Outsize Returns.
I’ll explain why in
the following
slides…

South East Asia:The next
big startup frontier ?

What makes a successful Startup
City in Asia?
5.Talent
4. Events
3.Accelerators
6. Coworking
Spaces
1. Risk Capital
2. Role Models
The 6 Core
Components
of Startup
City success
Let’s start by looking at the
6 Core Components of
Startup City success and use
the Startup City Matrix to
understand challenges and
opportunities in Asia…

1. Risk Capital

1. Risk Capital 2. Role Models 3.Accelerators
4. Events 5.Talent 6. Coworking Spaces City Data
Table of Contents
Introduction
You can click the image to jump there

Only 5% behind
North America
$70.8 bn Asia $74.5 bn N America
Disclosed Startup Investment ($ Billions) 2017
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DisclosedFunding($Bn)
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016 2017
SOURCE:ASIATECHRESEARCH BASED ON PREQIN
& BLOOMBERG DATA
China is the Standout Leader in
Asian Startup Funding
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Startup Funding Reached
$58.5 billion in China 2017

To better understand this rapid
growth in Asian startup funding,
…we need to better understand
Risk Capital…

This is NOT Risk Capital
…it’s entertainment
If we want to succeed in Asia, we
need to model the fundamentals of
Startup City success - the
conversation - rather than the
superﬁcials - the entertainment.

We have to choose:
Does Asia need more
Entertainment or Conversation
to grow the Startup Ecosystem? It’s a
theme we’ll come back to in future
slides of this report.At ATP we believe
in Conversation, like deﬁning what
Risk Capital is…

Econom
ic
Shift
Success
W
ealth
Shift
Risk
C
apital
Expanding economy
creates new
generation of
entrepreneurs
New generation of
startups obtain
success and wealth
Entrepreneurs
diversify out of
traditional asset
classes into startups
Older generation
finance younger
generation of
entrepreneurs
ASIATECHRESEARCH
Angel Investor based
in Singapore with, ex
head of E-Trade Asia
“Being from Myanmar,
it was difficult since
the investment
seemed risky.
Eventually, we raised
US$150,000 from
Blibros and $50,000
from our angel
investor, Ned Phillips.”
Ned Phillips
Ye “Jeff” Myan Min
This is Risk Capital
…and Risk Capital takes time to emerge within an Ecosystem
Capital
Cash allocated to traditional asset
classes e.g. stocks, fixed income, funds,
bricks’n’mortar businesses, real estate
Cash invested in non-
traditional assets, with greater
risk:return e.g. startups
Risk Capital

Econom
ic
Shift
Success
W
ealth
Shift
Risk
C
apital
Expanding economy
creates new
generation of
entrepreneurs
New generation of
startups obtain
success and wealth
Entrepreneurs
diversify out of
traditional asset
classes into startups
Older generation
finance younger
generation of
entrepreneurs
ASIATECHRESEARCH
Angel Investor based
in Singapore with, ex
head of E-Trade Asia
“Being from Myanmar,
it was difficult since
the investment
seemed risky.
Eventually, we raised
US$150,000 from
Blibros and $50,000
from our angel
investor, Ned Phillips.”
Ned Phillips
Ye “Jeff” Myan Min
This is Risk Capital
…and Risk Capital takes time to emerge within an Ecosystem
Capital
Cash allocated to traditional asset
classes e.g. stocks, fixed income, funds,
bricks’n’mortar businesses, real estate
Cash invested in non-
traditional assets, with greater
risk:return e.g. startups
Risk Capital
Angel investors take
time to emerge in any
given Startup City,
requiring a 2nd
generation of
entrepreneurs with exits
to come through

angel
investors
startup
accelerators
venture
capitalists
corporate
ventures
stage of
investment
sizeofinvestment
The 4 Main Sources
of Risk Capital

Special Feature Podcast
Ned Phillips, Angel Investor Singapore
Listen to the Podcast interview
with Ned Phillips
You’ll ﬁnd these interview
resources throughout the
report. If you’re interested in a
speciﬁc subject, these are a
good opportunity to
“zoom in”.

Investors in Asia: We want to see less of
that and more of this…
That: Entertainment This: Conversation
Disempowering narratives that feature
celebrity billionaire investors.
Asia-wide connectivity between local
angels who are a part of the community.

Tiang Lim Foo, Partner Seedplus
Listen to the Podcast interview with
Tiang Lim Foo

Rina Neoh, Angel Investor Singapore
Rina Neoh

Steven Liew, Angel Investor Fukuoka
Steven Liew

highstartup
density
lowstartup
density
Distribution of Risk Capital by market stage
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highstartup
density
lowstartup
density
movement of risk capital
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Rather than Google,
Facebook or Microsoft…
…increasingly Chinese duo
Alibaba andTencent are the
driving forces behind the
importing of
large sums of capital
and vast business
experience into
Southeast Asia’s most
promising startups.
-TechCrunch 22 Jul 2017
ASIATECHRESEARCH
TenCent
Sequoia China
DST Global
QimingVentures
Temasek
Softbank
Tiger Global
Alibaba
GIC
GGV Capital
Ant Financial
CICC
IDG Capital
Hillhouse Capital 5
5
5
5
5
6
6
6
7
7
8
8
13
19
SOURCE:ASIA TECH PODCAST BASED ON CB INSIGHTS DATA
Investments in Asian Unicorns
The probability of Outsize Returns is
now greater outside of China than inside.

The Search for Outsized Returns
Forces Risk Capital into Southeast Asia
2000-2007 2008-2015 2016-2023
Evolution Maturation Reallocation
Demographic
advantage creates
proﬁt. Seeking greater
returns, Chinese
investors provide Risk
Capital to Chinese
startups
Returns peak then
plateau as valuations
spike, market saturates
Chinese investors shift
Risk Capital outside
China where valuations
offer better returns
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0
100
200
300
400
500
0
2,000
4,000
6,000
8,000
10,000
2012 2013 2014 2015 2016 2017
Funding
# Deals
South East Asian Venture Funding
Grows >100% in a Year
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DisclosedFunding($M)
#Deals
SOURCE:ASIA TECH PODCAST

Through their investments and acquisitions, it’s
very clear that Alibaba andTencent are
interested in Southeast Asia.
They share our vision, that this region is
ripe for opportunities in the e-commerce,
payments, and marketplaces space.
-Vinnie Laura, Partner Golden GateVentures

…it’s not allTenCent and AliBaba

2. Role Models
Everyone learns through story,
and Role Models - in particular
relatable Role Models - are
more important than money in
nurturing successful
entrepreneurs.

he’s cool and all that but…
1. he ain’t Asian
2. he doesn’t live in Asia
3. he builds spaceships…

The media is dominated by a repetitive narrative that
favours one geography and one race.
Definition of hegemony
1 : preponderant influence or authority over others
2 : the social, cultural, ideological, or economic influence exerted by a dominant group

When the “West” says “you don’t need to be in Silicon
Valley” it really means… North Carolina and Boise.
Uptake (Chicago, Illinois)
Pendo (Raleigh, North Carolina)
Lisnr (Cincinnati, Ohio)
Duo Security (Ann Arbor, Michigan)
Cradlepoint (Boise, Idaho)
Lessonly (Indianapolis, Indiana)
Qualtrics (Provo, Utah)

But, some in the “West” are waking up to the existence of Asians
who aren’t just copycats but also successful entrepreneurs

Uber
Didi Chuxing
Xiaomi
AIrbnb
SpaceX
Palantir
Wework
Lu.com
China Internet
Pinterest $ 12.3bn
$ 18bn
$ 18.5bn
$ 20bn
$ 20bn
$ 21.2bn
$ 29.3bn
$ 46bn
$ 50bn
$ 68bn
SOURCE:ASIA TECH PODCAST BASED ON
CB INSIGHTS DATA 2017
4 of the World’s 10 Most Valuable
Private Companies are Chinese
…but few people outside of Asia
have ever heard of them
SOURCE:ASIA TECH PODCAST BASED ON
ALPHABETA DATA 2017
Top 10 Asian Cities for
Tech Startup Density*
(*startups per mn pop)
1. Beijing
2. Shenzhen
3. Shanghai
4. Singapore
5. Kuala Lumpur
6. Taipei
7. Bangkok
8. Bangalore
9. Hong Kong
10. Ho Chi Minh City

highstartup
density
lowstartup
density
Evolution of startup role models relative to stage of Startup City development
ASIATECHRESEARCH
well known startup
narratives & role models
role models well known
within startup community
but less so in mainstream
media
handful of celebrity
entrepreneurs but
noticeable lack of grass
roots role models
successful case studies
usually focused on expat
business community
highstartup
density
lowstartup
density

The big dragons provided role models, but
even more signiﬁcantly, they built the
infrastructure crucial for today’s high tech
boom, including the cloud services that allow
any twenty-something to launch a
business overnight and immediately start
billing customers.
- Wired Magazine 29/12/15

In the Pantheon of Startup Role
Models, Grassroots Comes Last
Early stage market
where entrepreneurs
borrow celebrity role
models from overseas
Developing market
where entrepreneurs
get their own local
celebrities
Mature market
where entrepreneurs have
access to a wide set of grass-
roots role models
International
Celebrity
Entrepreneur
Local
Celebrity
Entrepreneur
Local
Grassroots
Entrepreneur

We need to go further…
Celebrities grab headlines, but the real
work often happens behind the scenes
and it’s those entrepreneurs - people like
you and me - who provide the most
attainable role models for the next
generation…

KennyThing (UforLife)
William Bao Bean (Chinaccelerator)
Adhi Brahmantya
Casey Lau (RISE)
Andrew Liew (QICStart)
Hassan Syed (IdeaGist)
ChristineTeo (Startup Asia Women)
Craig Dixon (Muru-D)
Bay McLaughlin (Brinc)
Ben Wong (Startup Launchpad) 74
74
76
78
79
122
129
179
487
827
SOURCE:ASIA TECH PODCAST 2017
AsiaTech Podcast Poll of registered Linkedin Users 2017 n=2861
Who has contributed most to
the Startup Ecosystem in your City?
Real people doing real things solving real problems.

Role Models in Asia: We want to see less of
that and more of this…
Global celebrities who indirectly
reinforce Western startup hegemony
Local entrepreneurs “in the trenches”
who provide a relatable Role Model

3. Startup Accelerators

Startup Accelerators are a core component of readying early
stage businesses for investment and market entry.

Asia is Rich in Startup
Accelerators
BNV Lab
ImpacTech
muru-D
Chinaccelerator
MaGIC
The Finlab
Sparklabs
AIA Accelerator
JungleVentures
Supercharger 20
26
31
32
32
41
57
116
127
256
Top 10 Asian Accelerators

When we began collecting data in 2013 to explore
differences between startup acceleration in emerging
markets and in high-income countries,
we expected stark differences.
However, we were surprised to ﬁnd
far fewer differences in the effects
of acceleration than we had expected.
- Harvard Business Review Oct 2017

highstartup
density
lowstartup
density
Evolution of startup accelerators relative to stage of Startup City development
ASIATECHRESEARCH
Accelerators maturing
after successive cycles,
now attracting large
numbers of local talent
Accelerators enter
successive cycles, choosing
to grow, diversify or close
Accelerator market either
early experiments with
little case history or
branches of global brands
Underdeveloped
accelerator market with
increasing interest
highstartup
density
lowstartup
density

Startup Accelerators like muru-D have moved in to Asia to
translate their acquired knowledge to bigger markets.

Paul Meyers, Muru-D Singapore
Paul Meyers

Others like Read Write Labs focus on increasing the reach of
North American companies into Asia

Kyle Ellicott, Read Write Labs
Kyle Ellicott

While Brinc helps startups tap the Chinese market for
production opportunities.

Bay McLaughlin, Brinc Hong Kong
Bay McLaughlin

As Asia matures, startup accelerators like ImpacTech (social
innovation) offer increasingly niched value propositions.

Kineret Karin, ImpacTech Singapore
Kineret Karin

Benjamin Joffe, HAX Accelerator
Benjamin Joffe

Startup Accelerators in Asia: We want to
see less of that and more of this…
Risking all that investment of time and
effort on a single 5 minute pitch.
An ongoing conversation that yields
returns long after the batch graduates.

(Bezos was one of Google’s ﬁrst 4 investors)
…they didn’t meet at a demo day
founder
angel

Asian Startup Cities need to know… this is not how people
fall in love. Relationships aren’t built in minutes.

4. Events

Asia has come a long way in producing some stellar startup
events…

Casey Lau, RISE Hong Kong
Casey Lau

ASIATECHRESEARCHThe startup city matrix 2018
highstartup
density
lowstartup
density
Evolution of startup events relative to stage of Startup City development
ASIATECHRESEARCH
Chinese markets have
enough depth to keep
diversifying, but smaller
markets will saturate
Increasingly diversiﬁed
events market e.g vertical
sectors (Fintech, AI etc)
Large mid-market startup
festivals aimed at
educating market
Small but emerging startup
market aimed at mobile
expat and investor
community
highstartup
density
lowstartup
density

Top 10 Startup Events in Asia
RISE
Singapore Fintech
Slush
Echelon
Startup Launchpad
Startup Weekend
Techcrunch China
Startup Salad
E27 Switch
Techsauce 20
24
24
28
49
57
59
71
80
151
This is
awesome…
But we’re not
there yet.
We still have work
to do…

Event Organisers in Asia: We want to see
less of that and more of this…
After parties, disco-balls
and Western celebs.
Meaningful conversations that produce
relationships not noise.

5. Talent Concentration

Asian Startup Cities are Leading in talent
acquisition.
You don’t HAVE to be anywhere
to launch your startup. So, why
not pick a city that you like?
Capital andTalent can go
anywhere in the world these days.
Capital andTalent are the
BUYERS.And the governments
around the world are the Sellers.
It’s a Buyers’ market right now.
- Steven Liew,Angel Investor

“What the heck
Let’s go to Asia”
“There are real
opportunities here in
Asia”
“You’re missing out
if you’re not in Asia”
Pioneers Opportunists Followers
ASIA:
The frontier
ASIA:
The next big thing
ASIA:
The de facto
1980 -1999 2000 - 2019 2020 -NOW
NEXT
Talent Trends Reflect Cultural
Acceptance of Asia

highstartup
density
lowstartup
density
Evolution of talent concentration relative to stage of Startup City development
ASIATECHRESEARCH
overseas experience finds
stiff competition with local
talent
significant influx of
international talent into
the startup scene looking
for opportunity
attractive to international
talent but significant
barriers still exist (e.g.
lifestyle, language)
international talent often
attracted by lifestyle
choices (e.g. family,
marriage, travel)
highstartup
density
lowstartup
density

As Asia continues to attract the world’s best talent, there is a
growing demand for people who can help bridge these markets…

Jon Tanner, Mitchell Lake Group Singapore
JonTanner

Jerome Le Carrou, Next Step Connections
Jerome Le Carrou

Gregory Prudhommeaux, Shanghai
Gregory Prudhommeaux

Alibaba
Tencent
China Mobile
ICBank
Samsung
Toyota
Petrochina
CCBank
Agri Bank China
Bank of China $ 143bn
$ 150bn
$ 187bn
$ 190bn
$ 191bn
$ 196bn
$ 230bn
$ 250bn
$ 256bn
$ 261bn
SOURCE:ASIA TECH PODCAST BASED ON BLOOMBERG DATA 2017
The New Economy Dominates Asia
Market valuations of Asia’s most capitalised companies
Asian tech has always
struggled with ingrained
conservatism towards non
traditional sectors.
But now, the latest
generation of talent
follows the money.
Tech startups are no
longer an “alternative
lifestyle” but a viable
choice for graduates.

And, as for the next generation of
engineers, scientists and programmers…
Asia has a signiﬁcant edge of its own…

Singapore
Hong Kong
Taiwan
China
UK
USA
Maths Science Reading
SOURCE:ASIA TECH PODCAST BASED ON PROGRAMME FOR
INTL STUDENT ASSESSMENT DATA 2016
Asia Leads in STEM Education
Singapore and Hong Kong top world PISA rankings

Asia
will be world’s
largest market by 2022
300m
Chinese learning
English
600m
K-12 Students in Asia
40%
of Asian income
spent on education
sources:Asiatechresearch
based on market & market, Fresco Capital data
$59.9bnGlobal Market size by 2018
Global Edtech is a $60 bn Market
…and Asians are by far the biggest consumers

Where the most talented used to head to the US
to complete their education,Asia is now vying to
offer its own world-leading Universities…
The 2016-17Times Higher
Education Ranking includes
289 Asian universities from
24 countries which make the
overall list of 980 institutions.
And an elite group of 19 are
in the top 200, up from 15
last year.
China’s climb up the list of top
universities has already begun
to pay off, as its companies are
getting smarter, beating their
Japanese and Korean
counterparts and catching up
with their American
counterparts.
- Forbes, 22 Sep 2016

Media in Asia: We want to see less of that
and more of this…
Lionizing SiliconValley, its people and
its narratives.
Giving a platform for Asian stories
and their ongoing conversations.

6. Coworking Spaces

Asia is not short of amazing coworking spaces like
this one at GorillaSpace (Singapore)

Ginny Eckblad, GorillaSpace Singapore
Ginny Eckblad

Top Coworking Spaces in Asia
Impact Hub (SIN)
Naked Hub (SHG)
Cyberport (HKG)
We Work
Hubud (UBU)
Level 3 (SIN)
The Hive (BKK)
Paper &Toast (MYS)
Campﬁre (HKG)
Launchpad (BKK) 35
36
36
38
42
59
63
65
83
102
We asked startup founders where the
best city to start a business was.They
didn’t just value access to Startup
Capital but also quality of life and
infrastructure as key to their choice.
1
3
Impact Hub
Naked Hub
Cyberport
SOURCE:ASIA TECH PODCAST

Karena Belin, WHub Hong Kong
Karena Belin

The startup ecosystem here is
younger than the rise of the U.S.,
so many of today’s more successful
startups in this region started
out in a coworking space.
- Forbes 22 Aug 2017

Asia is experiencing something of a coworking
boom

By 2030, co-working spaces could
make up 10-15 % of ofﬁce
stock in Southeast Asia, compared
to only 1 to 5 % today.
- Regina Lim, National Director JLL

ASIATECHRESEARCHThe startup city matrix 2018
highstartup
density
lowstartup
density
Evolution of coworking spaces relative to stage of Startup City development
ASIATECHRESEARCH
coworking market
saturation, attrition and
diversiﬁcation, entrance of
commercial real estate
plays
coworking space prime for
acquisition and merger
expanding “cottage
industry” coworking
market with a handful of
larger players emerging
scattered coworking
market with large gaps
highstartup
density
lowstartup
density

Coworking Spaces in Asia: We want to see
less of that and more of this…
Billion dollar coworking businesses
constantly in need of a growth story.
Building out and fostering community
around local coworking spaces.

Building Asia’s Tech Ecosystem is
a Marathon not a Sprint
Entertainment Conversation
Risk Capital Shark tank Networks, best practises
Role Models Celebrities
Entrepreneurs doing real things
solving real problems
Accelerators
Demo days,
pitch competitions
Long term education, ﬁnancing,
connections
Events
Glitter balls, speed dating, after-
parties
Discussions, connectivity,
sharing
Talent Yes, but SiliconValley
Asia offers more opportunity
for talent today
Coworking Spaces
Billion dollar funded, celebrity
real estate plays
Local hubs, curators and
community builders
Less of that… More of this…

City Data

Here comes the data. Our goal is to
start this #asiamatters conversation.
You can ping me anytime about this
report using my twitter handle here:
@grahamdbrown

#1 Singapore
ASIATECHRESEARCHThe startup city ranking 2018

Value Asia Rank
GDP $297 billion #8
GDP $52,900 per capita #1
Growth Rate * 3.1% #12
Population 5.6 million #12
ATP Awards * #1 #1
Startup Genome * #12 #3
Millennial Startup City * #1 #1
Venture Capital * #6 #1
Tech Startups Per Mn * #1 #4
Economic Freedom * #2 #2
Ease of Doing Business * #2 #1
Quality of Living * #26 #1
Cost of Living * $2,724 pcm #15
Internet Speed * 62 Mbps #1
Ranking #1
Score: 147
Singapore
The Startup City Ranking 2018ASIATECHRESEARCH

Singapore
While Singapore was a latecomer to
startups in comparison to China,
governmental policy, access to talent,
2nd generation Risk Capital, quality
of living and pan-Asian reach
position Singapore as a future
contender to rival SiliconValley.
On the downside, Singapore has a
small domestic market. Combined
with a high cost of living, means
Singapore will necessitate going
global from day 1 and will favor
experienced startups or over
bootstrappers.

Michelle Katics, Portfolio Quest Singapore
Michelle Katics

Matt Foley, Pikohana Singapore
Matt Foley

Is Singapore the Best Startup City in Asia?
Asia Tech Podcast 440
Listen to this weekly Podcast discussion
with Graham Brown & Michael Waitze

#2 Hong Kong

Value Asia Rank
GDP $320 billion #6
ATP Awards * #2 #2
Startup Genome * n/a #5
Quality of Living * n/a #3
Ranking #2
Score: 132
2
Hong Kong

Hong Kong
Hong Kong stands to benefit
significantly from the movement of
Risk Capital out of China and the
ongoing development of the
Greater Bay area. Government
policy permitting, the city is well
positioned as a global leader in
Fintech and free market advocacy.
Hong Kong’s challenge is a
combination of cost of living
(limiting the development of early
stage inexperienced startups) and
the inherent attractiveness of
traditional sectors (e.g. real estate
and finance).

Felix Tan, The FinLab, Hong Kong
FelixTan

Jayne Chan, Startmeup HK
Jayne Chan

Charles d’Haussy, Head of Fintech Invest HK
Charles d’Haussy

Ashley Galina Dudarenok, Hong Kong
Ashley Galina Dudarenok

#3 Shanghai

Value Asia Rank
GDP $486.3 billion #3
ATP Awards * #5 #5
Ranking #3
Score: 120
3
Shanghai

Shanghai
On the basis of startup capital and
activity alone, Shanghai can claim to
be a global leader. Domestic market
size combined with access to cheap,
skilled labor make Shanghai a
launchpad for numerous global
startups.
As Shanghai becomes an
increasingly crowded startup market,
the challenge will come in
converting domestic gains into free
market returns outside of China.

Florian Bohnert, Mobike Shanghai
Florian Bohnert

Frank Lavin, ExportNow China
Frank Lavin

Geoffrey Handley, Shanghai
Geoffrey Handley

Shaun Rein, Shanghai
Shaun Rein

Huawei Connect in Shanghai

#4 Seoul

Value Asia Rank
GDP $1,070 billion #2
ATP Awards * #13 #13
Ranking #4
Score: 117
Seoul

Seoul
Seoul is a relatively unknown player
in the startup ecosystem but
beneﬁts from a strong technological
base plus an economy geared
towards export. If it can get its act
together, continue its advances in
economic freedom and ease of
doing business, whilst promoting the
city as an option for foreign talent,
we see Seoul as mayor long term
startup player in the 2020s.
Seoul’s challenges are macro - a
very attractive traditional industry
base (Samsung LG etc) combined
with ongoing political instability
north of the border.

#5 Tokyo

Value Asia Rank
GDP $1,500 billion #1
Quality of Living * #44 #2
Ranking #5
Score: 116
Tokyo

Tokyo
Tokyo is the sleeping giant of startup
ecosystems.The world lead of the
80s and 90s has been squandered
by political meddling and an
ingrained societal conservatism.
Tokyo’s challenge is that igniting a
startup ecosystem is pointless when
there are ever-decreasing numbers
of young people to populate it.
Fukuoka’s lead in revitalising the
local economy may provideTokyo
with a post 2020 Olympic roadmap
to maintain economic growth
through the curation of its startup
sector.

Marty Roberts, Entouch Tokyo
Marty Roberts

Tim Romero, Disrupting Japan Tokyo
Tim Romero

#6 Beijing

Value Asia Rank
GDP $345 billion #5
Beijing
Ranking #6
Score: 114

Beijing
Alongside Shanghai, Beijing is a
world leader in both the availability
of startup capital and numbers of
startups. However, Beijing’s global
footprint is limited by significant
systemic challenges: bureaucracy,
high cost of living, economic
freedoms and quality of life.
While Beijing may have enough
momentum to maintain its position
at the top table with SiliconValley as
a startup ecosystem, it will find it
difficult to attract and retain
necessary talent long term when
better lifestyle options exist
elsewhere.

#7 Kuala Lumpur

Value Asia Rank
GDP $40 billion #15
ATP Awards * #4 #4
Ranking #7
Score: 113
Kuala Lumpur

Kuala Lumpur
Kuala Lumpur has a highly focused
startup ecosystem, skewed by the
presence of large players (e.g. Grab)
and a strong insurance sector. KL
offers a more attractive destination
for startup founders who want to
bootstrap and/or enjoy a higher
quality of life than other options.
The size of KL’s domestic market
combined with its proximity to
Singapore means it will always
struggle to establish itself as a
Startup City globally unless it
successfully ﬁnds and develops its
niche offering.

#8 Shenzhen

Value Asia Rank
GDP $303 billion #7
ATP Awards * #7 #7
Millennial Startup City * n/a #11
Ranking #8
Score: 109
Shenzhen

Shenzhen
Of the 3 Chinese cities featured in
our ranking, we believe Shenzhen
offers the greatest long term
potential. Shenzhen is both part of
the Greater Bay ecosystem plus it is
witnessing a signiﬁcant growth in
foreign talent.
Shenzhen’s challenge will be
distinguishing itself from its two
nearest rivals: Hong Kong and
Shanghai.This challenge lies in not
trying to emulate either but in
exploring and developing around its
core strength in hardware
manufacturing.

Josh Steimle, MWI Shenzhen
Josh Steimle

Tony Verb, Greater Bay Ventures
TonyVerb

#9 Bangkok

Value Asia Rank
GDP $150 billion #10
ATP Awards * #4 #4
Ranking #9
Score: 107
Bangkok

Bangkok
Initially a favored choice for lifestyle
and bootstrappers, Bangkok is
developing its own nascent startup
scene powered mostly by an inﬂux
of foreign talent.
Bangkok’s challenge is differentiating
itself from the local appeal of
Singapore which will attract the
most successful of startups in the
region over time. Bangkok should
double down on its lifestyle and
travel sector, rather than try
compete with local rivals Singapore
and HCMC on all categories.

Jakob Lykkegaard, Bangkok
Jakob Lykkegaard

Jerome Le Louer, Wishbeer Bangkok
Jerome Le Louer

Bob Gallagher, Appsynth Bangkok
Bob Gallagher

Female Entrepreneurs from the Bangkok
Breakfast Network - Asia Tech Podcast 22

#10 Jakarta

Value Asia Rank
GDP $483 billion #4
ATP Awards * #3 #3
Cost of Living * $954 pcm #3
Ranking #9
Score: 107
Jakarta

Jakarta
The sheer size and entrepreneurial
hustle of Jakarta makes it a very
interesting Startup City long term.
As a bootstrapping base, Jakarta
could be a viable option for startup
founders wanting to tap the ASEAN
markets.
There is no shortage of grassroots
entrepreneurialism, but Jakarta has
many fundamental issues that need
to be addressed including
infrastructure, economic freedoms
and ease of doing business.

Ollie Halimatussadiah, Jakarta
Ollie Halimatussadiah

#11 Taipei

Value Asia Rank
ATP Awards * #9 #9
Ranking #11
Score: 106
Taipei

Taipei
Taipei has many fundamental
advantages to offer startups: an
inherent manufacturing base, access
to China and increasingly liberal
policies favourable to startup
founders.
However,Taipei’s challenge is its lack
of global awareness, suffering from a
middle-market lack of ecosystem
focus aiming to compete across all
factors.

Holly Harrington, Startup Stadium Taiwan
Holly Harrington

#12 Bangalore

Value Asia Rank
GDP $75 billion #14
ATP Awards * #8 #8
Ranking #12
Score: 98
Bangalore

Bangalore
Bangalore offers an excellent
bootstrapping base for startup
founders but it has struggled to
convert this advantage into a global
edge.
Although these issues may not be
wholly relevant to local talent,
infrastructure, bureaucracy, quality of
life and capital controls signiﬁcantly
reduce Bangalore’s appeal to both
foreign founders and investors.

#13 Ho Chi Minh City

Value Asia Rank
Ranking #13
Score: 90
HCMC

HCMC
Rapid economic growth combined
with an openness to globalization
and cheap cost of living make Ho
Chi Minh City an exciting long term
option for startup founders.Add to
these local factors, you have
proximity to all Asian markets -
including China and ASEAN.
If HCMC can reduce red tape and
loosen economic controls, it can
build on these advantages to
become the bootstrapping startup
capital of the world.

Marcus Ellison, Vietnam
Marcus Ellison

Giovanni Zangani, Vietnam
Giovanni Zangani

#14 Fukuoka

Value Asia Rank
GDP $163 billion #9
Ranking #14
Score: 81
Fukuoka

Fukuoka
Fukuoka is a notable experiment in
the startup desert that is Japan.
Fukuoka’s city-level loosening of
capital and visa requirements
combined with its geographical
proximity to mainland Asia make
this city an exciting destination,
especially in terms of lifestyle choice.
The most tangible risk in Fukuoka as
a Startup City is that it is over
reliant on top-down policies (that
can always change) plus the risk of
becoming a “PR exercise” for local
government as opposed to a long
term sustainable ecosystem.

Thomas Pouplin, Ikkai Fukuoka Japan
Thomas Pouplin

City-level ecosystem building delivers the speed
and dynamic necessary to facilitate startups.
"What is more important than anything for Japan is to create a
society where those who take risks and challenges are respected.
This is crucial to overcome the pessimistic prospects associated with
a declining birth rate and an ageing population.”
- SoichiroTakashima, Mayor of Fukuoka

Fukuoka Startup City: Hype or Reality?

#15 Manila

Value Asia Rank
Ranking #15
Score: 68
Manila

Manila
Manila is a long way off being
considered a veritable Startup City
but the signs of growth are there.
Current startup activity is built
around foreign talent basing in
Manila through lifestyle (rather than
business) choice.
The Philippines has a well evolved
entrepreneurial base, but translating
this hustle into startup success
requires addressing its signiﬁcant
infrastructural issues (internet speed,
economic freedoms, ease of doing
business).

Explanation of the 14 Key Indices
GDP City GDP
GDP City GDP per Capita
Growth Rate * GDP Annual Growth Rate from Trading Economics 2018
Population City Population in Millions
ATP Awards * See next slide - our survey of 1632 Linkedin Users
Startup Genome * The Startup Genome Report 2017
Millennial Startup City * The Startup City Score from Nestpick’s Millennial Survey
Venture Capital * Access toVenture Capital Score from World Economic Forum Report
Tech Startups Per Mn * Country Startups per Million Score from Alphabeta’s Report
Economic Freedom * Country Economic Freedom Score from Heritage 2018
Ease of Doing Business * Country Ease of Doing Business Score from the World Bank 2018
Quality of Living * Quality of Living Score from Mercer Report 2017
Cost of Living * Long Term Monthly Cost from NomadList 2018
Internet Speed * Internet Speed from NomadList 2018

We asked startup founders where the
best city to start a business was.They
didn’t just value access to Startup
Capital but also quality of life and
infrastructure as key to their choice.
Singapore
Hong Kong
Jakarta
Kuala Lumpur
Shanghai
Bangkok
Shenzhen
Bangalore
Taipei
Tokyo
Beijing
HCMC
Seoul
Manila
Chiang Mai 16
20
21
21
27
45
47
48
107
112
131
142
196
243
398
Tokyo
Taipei
Shanghai
Shenzhen
Hong Kong
Bangkok
Bangalore
Kuala Lumpur
Singapore
Jakarta
ATP Awards: Startup City Survey
ASIATECHRESEARCH

Let’s talk about future
versions…
With more time and resources in future
versions, and maybe with your help, we’ll
make a better v2.0 of the report.You can
read about our ideas on the ATP project
page here:
www.atp.show/projects

1. City Based GDP
The GDP figures are not yet consistent
enough. Country based GDP scores
are easy enough to find but city-based
measures vary significantly, especially
with city definitions (e.g. city vs
metropolitan vs prefecture).

2. Quality of Living
Mercer only covered 3 of our Asian
Cities in their QoL index.While this is a
start, a more widespread ranking would
be useful.While QoL doesn’t rank
startups, it’s a key factor for startup
founders in choosing which city to live
in.

3. Internet Speeds
Figures reported here differ from other
public rankings (e.g.Akamai). I found the
Nomad List rating more useful because it
reported what users were experiencing
in real situations (e.g. cafe, coworking
space, mobile and home) rather than just
ﬁxed line Speedtest users.

More Metrics Needed…
Would be great to get access to the
following on a city-by-city basis:
• City based funding
• Startups per City
• Levels of entrepreneurialism by City

Graham D Brown
Report Author
Thanks for reading my #asiamatters Report
“The Asian Century”.To learn more about
what I do, and get regular updates and
insights from my Asian research, connect
with me on Linkedin.
Connect with me on Linkedin

Asia Tech Research: Asia Matters 2/4 (Asian Startup Ecosystems)

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