In recent years, Asia has emerged as a global hub for innovation, especially at the crossroads of cryptocurrency and artificial intelligence (AI). The combination of these two powerful technologies is reshaping industries, creating new opportunities, and driving the future of tech. From finance to healthcare, Asian startups are leading the charge in this exciting space.

This article explores the rise of crypto-AI startups in Asia, their disruptive innovations, the potential for future growth, investment opportunities, and their challenges.

The rise of crypto-AI startups in Asia

Asia’s rapid adoption of digital technologies has created an environment ripe for innovation. Governments in countries like Singapore, South Korea, and China have embraced the potential of blockchain and AI, creating supportive ecosystems for startups. As a result, crypto-AI startups in Asia have been growing at an unprecedented rate, leveraging the region’s advanced digital infrastructure, large pool of tech talent, and growing consumer base.

One of the main reasons for this boom is the forward-thinking approach of Asian governments. For instance, Singapore has created a regulatory environment that encourages innovation while ensuring consumer protection. Meanwhile, China has made massive investments in AI and blockchain technology, pushing the boundaries of what’s possible.

This combination of government support, a thriving tech ecosystem, and a large, eager market has laid the foundation for the rapid rise of crypto-AI startups in the region.

Disrupting the tech scene: Crypto-AI innovations

When you combine AI’s ability to analyse and predict with blockchain’s transparency and security, you get a powerful mix driving innovation across multiple industries. These startups are not just improving existing processes; they’re creating entirely new ways of doing business.

For example, in the financial sector, AI-powered crypto trading platforms are changing how assets are traded. These platforms use advanced algorithms to process vast amounts of data, predict market trends, and execute trades with incredible accuracy.

Also Read: Blockchain technology: Revolutionising global payment solutions and cross-border remittance

In supply chain management, companies combine blockchain and AI to create more transparent and efficient systems. Imagine being able to track a product from its origin to its final destination, verifying every step of the way to ensure it’s authentic and safe. This is especially important in industries like pharmaceuticals, where product integrity is critical.

Exploring the future: Asia’s leading crypto-AI startups

Some of the most exciting developments in the Crypto-AI space are coming from Asia. Here are a few startups that are leading the way:

• SingularityNET (China): SingularityNET is creating a decentralised marketplace where AI developers can share and sell their AI solutions. This open marketplace is not only fostering innovation but also making advanced AI technologies accessible to a broader audience.
• Fetch.ai (Singapore): Fetch.ai is building a decentralised digital economy powered by autonomous software agents. These agents can handle tasks like optimising energy grids or managing supply chains, all without human intervention, thanks to the combination of AI and blockchain.
• Perlin (Singapore): Perlin focuses on integrating blockchain technology with AI to provide secure and efficient enterprise solutions. Their platform helps businesses leverage AI insights while ensuring that the data used is secure and trustworthy.
• DeepBrain Chain (China): DeepBrain Chain is developing a decentralised AI computing platform that uses blockchain to manage and allocate resources. This makes AI training more efficient and cost-effective, which is crucial for startups and smaller companies.

These startups are just the tip of the iceberg, but they showcase the creativity and innovation that’s driving the crypto-AI sector in Asia.

Investment opportunities in crypto-AI ventures

As a venture builder with over 20 years of experience, I’ve seen many technological trends come and go. However, the convergence of cryptocurrency and AI is different. It’s not just a trend; it’s a paradigm shift. In Asia, where innovation is a way of life, crypto-AI startups are at the forefront of this shift, creating solutions that have the potential to change the world.

The future is here, and it’s being built in Asia. Whether you’re an investor, an entrepreneur, or simply a tech enthusiast, now is the time to pay attention to the crypto-AI revolution. The startups emerging from this region are not just shaping the future of technology; they’re shaping the future of our world.

The rapid growth of crypto-AI startups in Asia presents a wealth of investment opportunities. As these technologies continue to evolve, early investments in promising startups could lead to significant returns. Venture capitalists and investors are already taking notice, with substantial funding being directed toward these ventures.

What makes these startups particularly attractive is their potential to scale and disrupt traditional industries. The integration of AI and blockchain opens up new possibilities, from revolutionising financial services to creating more efficient supply chains. For investors, the key is to identify startups that not only have innovative technology but also a clear plan for turning their ideas into profitable businesses.

Government support and grants for AI startups

As the crypto-AI sector continues to gain momentum in Asia, several countries are offering financial support in the form of grants to encourage further innovation. These grants are designed to nurture the growth of AI startups, enabling them to develop cutting-edge technologies and compete on a global scale.

For instance, Singapore has launched various initiatives to support AI-driven innovation. Through programs like the AI Singapore initiative, the government has committed over SG$500 million (approximately US$370 million) to fund AI research, development, and startup incubation. These funds provide crucial support for startups, offering not only financial aid but also access to resources and mentorship.

In South Korea, the government has pledged over KRW 2.2 trillion (approximately US$1.9 billion) by 2025 to develop AI technologies. A significant portion of this funding is allocated to grants for AI startups, particularly those integrating blockchain into their operations, thereby positioning the country as a leader in the AI-blockchain fusion.

Japan is also investing heavily in AI, with the government committing over JPY 220 billion (approximately US$2 billion) towards AI research and development by 2025. Grants are available for startups focused on applying AI across various industries, from healthcare to manufacturing, driving innovation and ensuring Japan’s competitiveness on the global stage.

Meanwhile, China continues to be a major player in AI and technology development. The Chinese government plans to increase its spending on science and technology significantly, with a planned investment of 371 billion yuan (approximately US$52 billion) in 2024. This represents a 10 per cent rise from the previous year and is the largest increase in five years.

Also Read: Leveraging AI, big data and blockchain to build your dream home

These grants and government-backed initiatives are pivotal in the rapid advancement of AI technology in Asia. They not only provide much-needed capital for startups but also foster an environment of collaboration and innovation, further driving the growth of the crypto-AI sector.

The impact of blockchain technology on AI development in Asia

Blockchain technology is playing a crucial role in advancing AI development across Asia. The decentralised nature of blockchain allows for secure data sharing, which is essential for training AI models that require large datasets. By ensuring that the data used is accurate and tamper-proof, blockchain technology enhances the reliability of AI applications.

In financial services, AI-driven crypto platforms analyse trends, predict prices, and execute trades autonomously. DeFi platforms use AI to create efficient financial products, disrupting traditional institutions in Asia’s markets.

In supply chain management, AI predicts disruptions, while blockchain enhances transparency across logistics processes. This combination is especially vital in pharmaceuticals, ensuring product authenticity and preventing counterfeits.

In healthcare, AI analyses patient data, while blockchain secures sensitive information, improving personalised treatments. AI accelerates drug discovery, analysing data rapidly, while blockchain ensures a transparent development process.

These innovations are reshaping industries, driving efficiency, security, and innovation through AI-blockchain synergy.

Moreover, blockchain enables the creation of decentralised AI marketplaces, where developers can share their work and collaborate on projects. This is democratising AI development, making it accessible to more people, and speeding up innovation.

Conclusion

Asia is rapidly becoming the centre of innovation for crypto-AI startups, where the fusion of AI and blockchain is creating new possibilities and transforming industries. From finance to healthcare, these startups are not only disrupting traditional business models but also paving the way for the future.

For investors, entrepreneurs, and tech enthusiasts, the opportunities in this space are immense. While there are challenges, the potential rewards far outweigh the risks. As we look to the future, it’s clear that the integration of AI and blockchain will continue to drive innovation, with Asia leading the charge. The future is here, and it’s being built by the creative, ambitious minds behind Asia’s Crypto-AI startups.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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This article was first published on August 20, 2024.

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In November 2024, SGX-listed live-streaming honcho 17LIVE Group announced the acquisition of 100 per cent of the outstanding shares of Japan-based N Craft Co to bolster the group’s V-Liver business segment.

Per a statement, both entities will collaborate to enhance the IP talent business, implement innovative initiatives, and jointly develop a new V-Liver production brand.

In this interview, 17LIVE CEO and Executive Director Jiang Honghui discusses more about the deal, the virtual live-streaming industry, and the group’s diversification of revenue streams.

Edited excerpts:

Virtual live streaming is a relatively recent phenomenon. How does it differ from traditional live streaming, and what factors have contributed to its popularity?

Virtual live streaming differs from traditional live streaming primarily in using avatars, digital characters, and immersive virtual environments.

Traditional live streaming typically involves streamers broadcasting in front of a camera, engaging directly with their audience through physical appearance, setting, and personality.

In contrast, virtual live streaming allows content creators to embody digital avatars that interact with the audience in a fully immersive and imaginative manner. This enables streamers to transcend physical limitations and create more dynamic interactions.

Also Read: 17LIVE acquires Japan’s N Craft to enhance virtual talent and content creation

The rise in virtual live streaming can be attributed to technological advancements, particularly in augmented reality (AR) and virtual reality (VR), which have enhanced the immersive experience.

Additionally, the increasing popularity of virtual influencers and gaming culture has significantly made virtual content more appealing to a broader audience.

High-quality content creators are an integral part of your business. What are the primary barriers to entry for new content creators looking to establish themselves in the live-streaming industry? How does 17LIVE work to reduce these barriers and ensure the right quality of content creators comes out on top?

New content creators often face significant barriers when entering the live-streaming industry. These include:

• The need for specialised equipment, such as high-quality cameras, microphones, and lighting.
• Technical skills required for streaming and content creation.
• The challenge of building an audience from scratch in a competitive space.

17LIVE works to reduce these barriers by offering an easy-to-use, technologically advanced platform.

For example, our “V-Mode” allows creators to use virtual avatars with minimal setup, eliminating the need for complex technical configurations.

Additionally, we provide extensive support through content creator development programmes, helping streamers build skills, grow their audiences, and enhance content quality. Through talent nurturing initiatives and strategic marketing, we ensure that high-potential creators can succeed and thrive on our platform.

One of the strategic pillars in your Forward Strategy is revenue diversification. Can you elaborate on the potential revenue streams under development outside of live streaming?

Revenue diversification is a critical component of our long-term strategy and a key pillar of our 17LIVE Forward Strategy. It enables us to build a sustainable business model beyond a single source of income.

One focus area is virtual IP and talent management. We are expanding our virtual influencer business through acquisitions like N Craft and Mikai. This includes creating and managing digital characters, known as V-Livers, who engage with audiences on multiple platforms.

Revenue opportunities include performance events, merchandise sales, and licensing of virtual characters for entertainment and commercial use. For instance, N Craft has over 100 V-Livers in its IP portfolio, while Mikai has 17 high-quality VTubers with millions of subscribers.

Could you elaborate on how you achieved operational efficiencies in the first half while pursuing revenue diversification? Could 17LIVE sustain these operational adjustments moving forward?

In the first half of 2024, we achieved operational efficiencies by streamlining internal processes, integrating advanced technology to automate key functions, and optimising content production. This approach reduced operational costs while allowing us to scale our operations.

Also Read: Streaming the dream: How live streaming technology can increase access to brands

The integration of acquisitions such as N Craft and Mikai has enhanced our content production capabilities and talent management processes, ensuring we can scale quickly and efficiently.

As part of our revenue diversification strategy, we invested in live commerce and virtual IP, requiring efficient operations to ensure profitability. Moving forward, we are confident these efficiencies can be sustained by leveraging technology and automation. Additionally, maintaining focus on high-impact revenue streams will help ensure a strong and sustainable financial position.

Live commerce is a growing segment of your business. Can you talk more about the potential you see in this segment? How much does it contribute to 17LIVE’s revenue in the coming year?

Live commerce combines live streaming with e-commerce, enabling creators to sell products directly to their audiences in real-time.

One key initiative is HandsUP Crossborder, a matchmaking service connecting key opinion leaders (KOLs) with merchants across different markets.

For example, Taiwanese KOLs collaborate with Japanese merchants to sell products to Taiwanese audiences. This cross-border approach expands market reach and creates new revenue streams for KOLs and merchants.

As we continue to expand and refine our live commerce offerings, we anticipate significant revenue contributions from this segment, capitalising on the growing trend of interactive online shopping.

There is a growing trend of Japanese virtual live-streaming platforms expanding globally. How does 17LIVE plan to differentiate its virtual live-streaming offering from competitors in Japan and Asia?

17LIVE stands out by integrating live streaming with virtual IP management. Unlike pure virtual IP houses that focus solely on developing and managing digital characters, we operate as both a live-streaming platform and a hub for V-Livers. This dual capability provides an ecosystem where content creators and virtual IPs thrive together.

Also Read: How AI, AR, and live streaming are changing the online shopping experience

Our platform enables Livers to build virtual identities while benefiting from our growing IP portfolio. Additionally, our offline events allow V-Livers to connect with audiences and celebrities, further elevating their stature. This comprehensive ecosystem positions 17LIVE uniquely in the market.

With a strong cash balance, what are the company’s topmost priorities for cash deployment?

With a strong cash position and zero debt, our top priorities include:

• Expanding virtual IP and talent management businesses, leveraging acquisitions like N Craft and Mikai.
• Enhancing our technology platform to stay at the forefront of live streaming innovation.
• Growing our live commerce initiatives, a major driver of future revenue.
• Pursuing regional and global expansion, particularly in Southeast Asia, where demand for virtual live streaming and live commerce is rising.

These investments align with our 17LIVE Forward Strategy to drive long-term value and sustained growth.

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Soul Parking, an Indonesian parking technology company, has secured an undisclosed amount in a Series A extension round co-led by AC Ventures and AppWorks.

The round also saw participation from Taiwan Mobile, USPACE, and Wavemaker Ventures.

With the newly acquired funds, the startup plans to expand into new geographical areas and cities with high population densities, recruit new talent, enhance its product offerings, and invest in marketing to boost brand visibility and attract more users.

Also Read: For Soul Parking, fixing Indonesia’s two-wheeler parking issue is a walk in the park

The company intends to deepen its market coverage in existing areas and explore opportunities in the electric vehicle (EV) space.

“Soul Parking is actively collaborating with players in the EV industry to establish partnerships. The aim is to transform our parking locations into key infrastructure hubs for EVs, such as charging stations or battery swap facilities. This initiative aligns with the growing adoption of EVs in Indonesia and seeks to provide value-added services at our sites, ensuring convenience for EV users while supporting the country’s transition to sustainable mobility solutions,” co-founder Kenneth Darmansjah told e27.

Soul Parking aims to revolutionise traditional parking systems with its technology and provide a digital experience to property owners and drivers.

The startup offers various solutions, including Compact Motorcycle Storage (CMS), which provides portable, multi-level parking for two-wheeled vehicles, and the Soul Parking Operating System (OS), a cloud-based software that digitises existing parking structures. This OS provides real-time data analytics for both two- and four-wheeled vehicles.

The firm claims its technology can significantly increase parking capacity—by up to eight times—in dense areas, addressing a critical challenge in Indonesia’s urban centres.

In addition to optimising space, Soul Parking’s solutions also generate new revenue streams for property owners while ensuring that every parked vehicle is covered by insurance and each parking area is monitored by CCTV. Cashless payment options are available.

Ultimately, Soul Parking aims to contribute to the archipelago’s sustainable urban development by reducing congestion, lowering emissions, and enhancing the overall parking experience for drivers. It is also working towards addressing the widespread issue of illegal parking due to the shortage of spaces, which causes traffic congestion and economic losses.

The company says its vertical parking system, along with real-time tracking, optimises land use and enhances parking efficiency across Indonesia.

According to a press release, the company has already made significant inroads, with over 100 partners including property owners and management companies. It claims to process over 20 million parking transactions annually, and over two million vehicles have used Soul Parking’s systems since its inception.

Also Read: Indonesian smart motorcycle storage startup Soul Parking raises seed funding co-led by AC Ventures, Agaeti

The solutions are currently being used in diverse locations such as apartments, hospitals, commercial centres, recreational areas, and residential complexes.

Michael Soerijadji, founder and Managing Partner at AC Ventures, noted: “Through its innovative solutions, Soul Parking offers cost-efficient and accountable solutions to property owners, while providing a seamless experience to parking customers… Soul Parking operates at scale and is well-positioned to compete effectively in this growing market.”

 

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The Asian tech startup ecosystem is booming. Countries across the region are actively fostering innovation, cultivating talent, and encouraging the growth of new ventures. As these startups scale, many of them aim to establish a foothold in neighbouring markets with strong innovation hubs, such as Hong Kong. Known for its sophisticated financial systems, strategic location, and pro-business environment, Hong Kong serves as a gateway for tech startups seeking to expand across the Asia-Pacific (APAC) region and beyond. 

For ASEAN startups, entering a new market like Hong Kong presents an exciting opportunity but also comes with challenges. These include a lack of local market insights, achieving product-market fit, insufficient funding or business networks, and navigating regulatory and compliance hurdles. 

Recognizing these challenges, the Hong Kong Science and Technology Parks Corporation (HKSTP) launched the HK Sandbox Programme. Notably, it aims to help foreign startups seamlessly expand their businesses in Hong Kong and mainland China. It has also partnered with renowned universities in Hong Kong. Through it, the Programme provides startups with business consultation, critical resources, networking opportunities, and access to strategic partners. This enables them to scale, adapt, and thrive in Hong Kong’s vibrant ecosystem and the Greater Bay Area (GBA).

This initiative not only provides startups with invaluable insights and resources but also offers students hands-on learning experiences that can ignite their entrepreneurial spirit. Moreover, the programme aims to enhance Hong Kong’s innovation and technology (I&T) ecosystem through international collaborations. By creating a triple-win scenario, the Programme is poised to elevate the entire community, driving growth and innovation in the region.

Read also: Elite Global Inno Day: A game-changing launchpad for health innovation

ASEAN tech startups are exploring Hong Kong

Thailand, in particular, has emerged as a rising star within Southeast Asia. This is thanks to a combination of young entrepreneurs, government support, and increasing venture capital interest. Today, 16 Thai startups joined the Programme to strive to expand beyond their local border. In late October, 13 of them travelled to Hong Kong and had a week-long “Market Exploration Tour.” It provided networking opportunities and insights into scaling their businesses. They also participated in StartmeupHK Festival events organised by Invest Hong Kong (InvestHK).

Significantly, the programme works with universities to bridge the gap between the Thai startups and the dynamic Hong Kong environment. It partnered with two Hong Kong universities, The Hong Kong University of Science and Technology (HKUST) and The University of Hong Kong (HKU). Through this collaboration, the Thai startups will be receiving support from students on market entry strategies and recommendations. The end goal of the programme is to propel their entry into the Hong Kong market. Joseph Koc, advisor to Thailand Science Park, remarked, “The HK Sandbox Programme creates a mutually beneficial platform for both regions.” He also serves as Adjunct Associate Professor at the Department of Management, School of Business and Management of HKUST.

Koc elaborated that Thai startups receive quality recommendations from consulting teams made up of students from HKUST of local and international background to assess and better understand the Hong Kong market as part of a market entry strategy recommendations. “Reciprocally, this arrangement will bring to Hong Kong entrepreneurs fresh ideas and diverse perspectives when they settle in at HKSTP. By fostering this one-of-a-kind cross-border collaboration, this partnership will not only fuel innovation but also enhance the global competitiveness of both Thailand and Hong Kong,” he added.

Universities weigh in on the Sandbox Programme

According to Joseph Chan, Associate Director of the Centre for Innovation and Entrepreneurship of HKU Business School, “This collaboration between HKU and HKSTP through the Sandbox programme is a significant achievement. While the concept of academia, research, and industry collaboration is often discussed, this programme truly brings it to life.” He continued that engaging students in market validation and business strategic planning facilitates the commercialization of products and services developed by Thai startups to be implemented in HK and subsequently the GBA.

Chan added, “This initiative bridges geographic and cultural gaps, providing valuable practical training in design thinking for students, namely empathy, cross-disciplinary innovation, and iteration.  It establishes a solid foundation for their future endeavours in corporate settings or startups, enriching the innovation and entrepreneurship ecosystem in HK.”

Meanwhile, Joon Nak Choi, Adjunct Associate Professor, Department of Management, School of Business and Management of HKUST, noted the programme’s value for both startups and students, offering strategic advice to startups and hands-on experience for students, ultimately strengthening Hong Kong’s entrepreneurial ecosystem.

Choi said, “Startups receive strategic and tactical advice from our top students, which can be crucial for successful market entry. Meanwhile, students gain hands-on experience by working on real projects, motivating them to achieve more than they thought possible. This collaboration fosters Hong Kong’s entrepreneurial ecosystem and equips the next generation of professionals with essential skills for success.”

Two startups in Cohort 2, Chosen Digital and Swees Plant, aim to scale their greentech solutions to this larger market.

Advancing Innovative Energy Solutions

Chosen Digital focuses on providing innovative energy solutions, particularly in the electric vehicle (EV) and energy management sectors. According to Worapoj Chosen, Founder and CEO of Chosen Digital, “Hong Kong is a promising market for EVs as 50% of new cars are already electric. However, while Thailand is made up of mostly houses and villages, Hong Kong has more high-rise buildings. That is why we need to study the market and customise our solutions.”

Chosen Digital offers EV charging solutions compatible across ASEAN and AI-driven energy load management to prevent infrastructure overload. Its entry into Hong Kong and the GBA will mean making a positive environmental impact in one of the world’s busiest regions. In fact, Worapoj’s participation in the HK Sandbox Programme is driven by the passion to bring about a more sustainable future. This is true not just for Thailand but also for the rest of Asia.

“I don’t see it as a competition, I see it as a collaboration. There are many startups in this space and green is for everyone so we must work together,” he emphasises. Worapoj believes that the networking and market research opportunities provided by the programme will be instrumental in encouraging more businesses and even countries to make the switch to EVs.

Mainstreaming Plant-Based Non-Dairy Products

Swees Plant, another Cohort 2 participant, specialises in producing plant-based, dairy-free cheese. Positioned at the intersection of agritech and greentech, it is a leader in Thailand’s growing plant-based food sector. In fact, CEO Nicolas Frauenfelder shares that their products are available in all major supermarkets with over 250 outlets nationwide. They are working on making non-dairy products even more accessible by expanding their product lines and partnering with fast food chains. And now, they are hoping to replicate their success in Hong Kong and the GBA.

“We are already the leading manufacturer of plant-based cheese in Thailand. Our vision is to become the leader in this category in APAC,” shares Frauenfelder. He further explains that Swees Plant was attracted to Hong Kong for a number of reasons. First, there is a significant portion of the population who either practice vegetarianism full time or adopt a plant-based diet at least once a week. Second, younger generations are looking for healthier and more sustainable food alternatives. And third, it is a unique market with high spending power that also serves as a gateway to mainland China.

For Frauenfelder, HKSTP’s HK Sandbox Programme offers an exciting opportunity to build valuable local connections and gain critical market insights. It presents numerous avenues for growth, which the company is eager to pursue. Through this collaboration, the company aims to establish a solid presence in Hong Kong, foster strong relationships with HKSTP and other key stakeholders, and achieve a successful product launch by early 2025.

Read also: Transforming traditional business models with HKSTP’s Elite Programme

HKSTP is Empowering Tech Startups and Beyond

Chosen Digital and Swees Plant are just two of 16 ventures currently participating in Cohort 2 of HKSTP’s HK Sandbox Programme. Originally launched in 2023, the Programme was designed to help Thai startups explore growth opportunities in Hong Kong. In its first cohort, eight Thai startups joined HKSTP’s Ideation programme, where they engaged in activities to facilitate their entry into the Hong Kong and Greater Bay Area (GBA) markets. As a result, all eight successfully registered their businesses in Hong Kong.

The Programme draws overseas startups by offering end-to-end support as both a validation and landing partner throughout their entrepreneurial journey. This comprehensive support helps startups establish a foothold in Hong Kong’s dynamic ecosystem. As a result, they can navigate the local market with greater ease. The programme also includes project-based learning opportunities for university students. This gives them hands-on experience with real-world case studies. It also creates pathways to potential jobs within the innovation and technology (I&T) sector.

The programme’s impact so far proves that HKSTP’s holistic approach benefits startups, students, and the broader I&T community alike. It attracts tech startups and talents with high potential to join Hong Kong’s largest I&T ecosystem. Further, it reinforces the city’s role as a regional innovation hub. And it will continue to do so as applications for the next cohort are open until 15 January 2025.

“The HK Sandbox Programme utilises the local academic community to assist overseas startups in exploring markets in Hong Kong and the mainland, it is also designed to create a triple win for startups, students, and Hong Kong’s I&T ecosystem. The third cohort of the HK Sandbox Programme is now open for application, we welcome startups from Malaysia and Indonesia to collaborate with the top business students in the city, join our vibrant ecosystem, ignite collaborations and use Hong Kong as a springboard for accelerated growth,” concluded HKSTP Head of Startup Ecosystem and Development Derek Chim. 

For more information on how to apply for the HKSTP Sandbox Programme, visit this website.

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This article is produced by the e27 team, sponsored by HKSTP

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Featured Image Credit: HKSTP

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When a startup reaches its first hundred followers, likes, or email subscribers, founders often go in one of several directions:

• They push for paid ads to capitalise on early traction.
• They shift focus to scaling sales and user acquisition.
• They rush to boost social engagement metrics and personal branding.
  

The actual answer?

• None of the above.

Those who prioritise A, B, or C may miss out on a foundational growth opportunity. Instead, startups should focus on an essential element that is often undervalued in the early days: building a loyal and engaged online community.

The power of community marketing

Community marketing offers something that paid media and even product development cannot achieve on their own: emotional connection and advocacy. 

For startups, an engaged community means a built-in support system—people who won’t just purchase a product but who will champion it, offer feedback, and act as brand ambassadors. In a startup’s volatile early stages, having a community of passionate users can be the difference between fading into obscurity or scaling to the next level.

Why does this matter? Startups that lean into community marketing aren’t just chasing one-time sales; they’re building a relationship that drives customer retention, loyalty, and even brand equity over time. Building this connection doesn’t just benefit today’s bottom line; it lays the groundwork for sustainable growth.

Understanding community as a key metric

The key to effective community marketing lies in rethinking how success is measured. 

Rather than focusing solely on vanity metrics like follower count, startups should pay attention to community-driven KPIs—metrics that indicate genuine engagement and loyalty. These might include active participation in online forums, the number of users contributing feedback, or how often customers refer friends.

Also Read: Navigate in a cookie-less world, leverage AI and think community-first

For instance, a tech startup might launch a private Facebook group or Reddit community where users can connect, share insights, and discuss new features. Facilitating this space helps startups gain an inside look into customer needs and a direct line of feedback, creating a dialogue rather than a one-way pitch. This level of engagement cannot be bought; it is built through trust and shared experience.

In return, members of these communities feel valued. Their ideas contribute to shaping the product, turning a transactional customer relationship into an emotional one. This investment pays off long-term, as people are far more likely to remain loyal to brands they feel are “theirs.”

The shift from transaction to transformation

Community marketing is more than a transactional exchange. This mindset shift can be challenging for founders who are used to pushing sales metrics or short-term results. 

Imagine a wellness startup that, instead of merely promoting its product, launches an online support group where customers can discuss their wellness journeys. Here, the brand is no longer just selling; it’s enabling a shared experience. Members of the group are more likely to return for repeat purchases, recommend the product to friends, and—importantly—feel a greater loyalty to the brand. 

From fans to evangelists: The true impact of community marketing

Community marketing may not lead to rapid, overnight growth, and that’s okay. 

The goal isn’t to produce immediate returns but to cultivate long-term brand equity and customer loyalty. Startups that successfully leverage community marketing foster a sense of ownership among their users, who feel they’re part of something larger than themselves. 

For investors, this shift is powerful. It indicates that a startup has moved beyond chasing quick wins and is focused on cultivating a sustainable, loyal customer base. While the metrics may not show exponential growth right away, they indicate a company with staying power—one that values people as partners, not just purchasers.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image courtesy: Canva Pro

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