2016 has come to an end and brought some unexpected surprises. It was the yr of Brexit and Trump, and the yr Uber left China. Everyone was asking, “What will happen in 2017?”
Here are my 7 predictions for the Southeast Asian tech scene in 2017:
1. Southeast Asia is becoming a much bigger web market than America
The ASEAN region will register over 300 million smartphone users in 2017, while America has only 225 million. This implies that every global app or service you possibly can consider (email, social media, chat, etc.) has more users in Southeast Asia than in all of America. This also implies that web corporations in our a part of the world can and must be larger than our American counterparts over time!
2. Financing can be harder to return by (so save what you have got)
Fundraising can be harder for many corporations in 2017. The recent news about a tricky VC climate, flat rounds, and a difficult fundraising environment is true. The money is there, but investors and VCs can be way more discerning concerning the caliber of corporations that deserve follow-on funding. Simply closing a fund based on revenue growth when unit economics remain negative isn’t enough. If you don’t know your CAC intimately (and even what it’s), you have got no probability of getting follow-on funding (whereas you may have 12 months ago, because even then most VCs didn’t know what it was either!).
3. At least three corporations will raise 9-figure funding rounds (over $100 million)
2017 can be the yr of huge funding rounds for a select few corporations which might be creating huge buzz. Gojek and Grab weren’t one-offs in 2016. We really are in a region where we’re creating big, huge corporations (see point 1), and smart entrepreneurs will grow quickly, requiring one other round of funding to blow away the competition (most probably from outside the region).
4. There can be one other exit exceeding $500 million
We have seen 3 exits over $500 million (Jobstreet, iProperty and Lazada) in the previous few years and this trend will proceed. More and more corporate buyers within the West and the North (China, Korea, Japan) are realizing that they will’t at all times go it alone and that partnering with and acquiring local teams and entrepreneurs can provide you with unprecedented market share and dominance from day one. BAT (Baidu, Alibaba, Tencent) have teams within the region on the lookout for the following big deal, so expect them to seek out something sooner reasonably than later.
5. Year of China
China is quietly and rapidly becoming an influential force within the region – more so than American web corporations, for numerous reasons. Expect this to proceed as more Chinese VC funds come to Southeast Asia, Chinese entrepreneurs spend more time within the region, and more Chinese corporations (BAT and plenty of others) invest (and acquire) within the region.
6. Fintech can be widely accepted
There have been many small players trying their hand at Fintech, but 2017 will see broad growth within the sector. Consumers have gotten more open to using technology, governments have gotten more comfortable with the thought of Fintech, and banks want to partner with entrepreneurs to drive it forward.
7. Every week, a special startup runs out of cash
This is natural. Some will develop into household names, but most will quietly disappear and shut down their operations. No one ever said constructing a groundbreaking business was easy. The excellent news is that everybody involved in a startup that didn’t succeed learned incredibly precious lessons that can greatly increase the likelihood of success for his or her next enterprise!
I’m enthusiastic about what 2017 will bring… I believe that is the yr that Southeast Asia will take great strides towards becoming an online superpower. We are excited to be a component of this dynamic, beautiful ecosystem.
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Patrick Grove is the co-founder and CEO of Catcha Group, a number one web group in Southeast Asia. He is recognized as certainly one of the leading entrepreneurs within the Asia Pacific region. You can follow him on social media via @patrickgrove
Read more at http://www.businessinsider.co.id/patrick-grove-7-predictions-southeast-asias-tech-scene-2017/#RbhQRzxlS11sKrK1.99
Read more at http://www.businessinsider.co.id/patrick-grove-7-predictions-southeast-asias-tech-scene-2017/#RbhQRzxlS11sKrK1.99
Read more at http://www.businessinsider.co.id/patrick-grove-7-predictions-southeast-asias-tech-scene-2017/#RbhQRzxlS11sKrK1.99
Read more at http://www.businessinsider.co.id/patrick-grove-7-predictions-southeast-asias-tech-scene-2017/#RbhQRzxlS11sKrK1.99
Read more at http://www.businessinsider.co.id/patrick-grove-7-predictions-sutheast-asias-tech-scene-2017/#RbhQRzxlS11sKrK1.99
