This is the first article of a series of essays aimed at providing guidance for entrepreneurs in Southeast Asia who are seeking to secure successful fundraising.

When I moved from Denmark to Indonesia in 2016, many of my European friends looked at me incredulously. Why would I move to an emergent market? Why would I give up on the high standard of living, excellent infrastructure, world-class education, stable governance, and healthcare support Denmark offers?

Yet, over time, the narrative has changed. People started praising my (at the time) contrarian bet. Asking for tips on how they could make similar moves. The change in perspective was fueled by the incredible growth Southeast Asia experienced in such a short period. A growth that translated into publicity, success cases, and studies that reached every corner of the planet.

Southeast Asia’s digital economy is projected to reach $1t GMV by 2030. Not too shabby, given how underdeveloped Southeast Asian countries were just a decade ago.

Every time I visit my family in Bulgaria, it blows my mind how digitally nascent most European countries are. Just one year ago, my brother was boasting about the rise of food delivery startups in Bulgaria.

Also Read: Tech firms in Southeast Asia poised to ‘leap’ forward with gender equality

A service Southeast Asia has been enjoying since 2015. In fact, e-commerce, food delivery, and digital financial services alone are expected to reach US$360 billion by 2025. The region’s success cases Go-Jek and Grab have married affordable workforce and mobile technology. Creating convenience at a price that’s rarely seen in other parts of the world.

All that while generating a significant economic opportunity for the local workforce. Going back to the examples of Go-Jek and Grab. Their drivers have received access to jobs that:

Pay better
Have low barriers to entry
Are most likely better than what they used to do.

But unless you live in any Southeast Asian country, it’s hard to understand how compelling the opportunity is. So let me offer a few insights:

A population of 589 million
Internet penetration of 75 per cent, 440 million internet users
350 million digital consumers
Digital financial services are flourishing and expected to continue growing:
- Remittance flow – currently at US$17 billion, +18 per cent by 2025
- Lending loan book – currently at US$39 billion, +31 per cent by 2025
- Digital payments – currently at US$707 billion GTV, +13 per cent by 2025
- Insurance (APE/GWP) – currently at US$3.2 billion, +30 per cent by 2025
- Investments (AUM) – currently at US$33 billion, +29 per cent by 2025

The more I read on the topic, the more obvious it seems that Southeast Asia has built a great foundation for a thriving startup ecosystem:

Market size – Pretty large given that nine per cent of the world population resides across Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Singapore
Consistent growth – The digital economy is expected to grow as high as 10x during the 2020s
Access to capital – There is a record high capital, poised to spur even more investments into the startup ecosystem

Talent is perhaps the only area where most Southeast Asian countries have struggled to get great results:
- That’s especially prominent with engineering jobs, but where isn’t it? Fortunately, markets like Indonesia and Vietnam are becoming emerging hubs for tech talent
- Singapore is the only country within the region that has consistently done great work attracting talent
- Founder talent has been improving given the return of overseas-educated Southeast Asians (known as “sea turtles”)

Also Read: SEA needs to grow together and produce more quality unicorns: Vertex Ventures’s Carmen Yuen

Growth in the digital realm has a snowball effect across other sectors as well. That has been the case in all countries where I have resided, i.e., Indonesia, Malaysia, and Singapore. Roads are getting bigger and better. New highways are popping up frequently.

The ever-improving infrastructure goes hand in hand with a thriving construction sector. In fact, I like to joke about how fast-paced construction in Asia is. How every time I visit my family in Europe, a new skyscraper gets completed in Jakarta or Singapore by the time I am back.

The frantic construction leads to frequent changes in cities’ skylines, which is incredible to witness. So naturally, that dynamic makes you feel optimistic about what’s ahead.

Final thoughts

In conclusion, Southeast Asia has made significant strides in building a foundation for a thriving startup ecosystem, and its digital economy is projected to reach $1T GMV by 2030. The region’s success cases, such as Go-Jek and Grab, have created convenience at an affordable price, generating significant economic opportunities for the local workforce.

Southeast Asia’s consistent growth, access to capital, and large market size make it an attractive destination for startups. Although talent remains an area for improvement, emerging tech hubs like Indonesia and Vietnam are attracting overseas-educated Southeast Asians.

The snowball effect of growth in the digital realm is also extending to other sectors, such as construction and infrastructure, making Southeast Asia an exciting region to watch for in the years ahead. As someone who moved to Southeast Asia from Europe, I can attest to the incredible progress the region has made and the opportunities it offers.

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