As startup founders, we’ve all felt the pressure lately. Economic uncertainty, shrinking VC funding, and investor demands for faster returns have hit quite hard. It’s not easy to scale, especially in Southeast Asia, where competition is fierce, and the funding environment has changed drastically. 

But here’s the thing: we don’t have to just survive this, we can thrive — if we approach growth differently. As opposed to years ago when scaling was everything, now investors start asking for quicker returns while we’re still trying to figure out how to make our product fit the market perfectly. 

But the good news is, there’s a way forward that doesn’t require burning through cash at breakneck speed.

Here are the top five areas from what I’ve learned and proven to work in every region where I’m operating — Asia, Europe, and Latin America.

Capital efficiency over growth at any cost

It’s tempting to chase after fast growth, especially when that was the golden rule just a couple of years ago. But in this economy, we’re being asked to do more with less. Investors aren’t just looking for growth anymore; they want to see how efficiently we can use the capital we have.

For us, this means rethinking where we allocate our resources. And it starts by asking the right questions: What’s giving us the best return? Are we automating where we can? Automation has been a lifesaver for many startups that survive the test of time, freeing up time and allowing them to scale without adding unnecessary overhead. 

It’s a tough pill to swallow sometimes, but being lean and efficient isn’t about limiting growth — it’s about growing sustainably. And in the long run, it makes all the difference.

Invest in the customers like they’re our lifeline (because they are)

Acquiring new customers takes time and money, two things that are in short supply when the market is tight. However, focusing on deepening relationships with existing customers and prioritising their experience can have a huge impact. 

One of Deloitte’s reports even stated that well-executed hyper-personalisation can deliver 8x the return on investment on marketing spend, and lift sales by 10 per cent or more. And this is where personalisation and understanding the real needs of our customers come into play.

In the eyes of the customers, startups need to become more than just a service or product provider. In an uncertain economy, they rely more heavily on us to ensure their business operations flow smoothly with a more limited capacity. 

Also Read: Exploring the creator economy in gaming

In the end, we have to step up our game, making sure our customers know we’re listening, care about their feedback, and eventually adapting to meet their needs. In times like these, those strong customer relationships can keep us afloat and even help drive word-of-mouth growth.

Make digital our best friend

Southeast Asia is unique in how quickly it’s embracing digital channels—whether it’s e-commerce, mobile apps, or social media. Investing in the digital strategy early on was one of the best decisions we made to survive any volatility in every region. 

But being online isn’t just about looking good on Instagram or Facebook anymore. It’s about finding what’s hidden and what customers secretly need from their behavioural patterns. Localising digital presence for each Southeast Asian market is also more crucial than ever. Some countries aren’t just dealing with economic slowdowns but also political instability. 

It’s a tricky space — one wrong move and we could be in the spotlight for all the wrong reasons. But get it right, and the impact can be game-changing like nothing we’ve seen before. So, every step we take to engage with our audience in a way that resonates locally, eventually brings us closer to sustainable growth. 

Be ready to pivot (anytime)

If there’s one thing we’ve all learned from these last few years, we must be nimble. The market shifts quickly, and what worked yesterday might not work tomorrow. As a founder, I’ve had to pivot multiple times — whether it was changing our marketing approach, tweaking our product, or shifting how we communicate with customers.

Now, this is where shifting to the agile mindset has been crucial. And no, this isn’t about throwing everything out and starting over. It’s about making small, iterative changes that keep us aligned with our customers’ evolving needs. While it’s sometimes nerve-wracking to take those risks, these pivots often lead to the biggest breakthroughs.

Trust is the main currency, especially with investors and advisors

One thing I’ve also learned is that building trust in the investors isn’t just about securing the next round of funding. Our investors want to see us succeed, but they also want transparency. Being open about our challenges, capital efficiency, and growth plans has helped us maintain strong relationships with them, even in tougher times.

Also Read: Managing talent in an economic downturn

We’ve also leaned heavily on our advisors—people who’ve been there and done that, and who understand the local and global startup scene. Whether it’s scaling up, entering new markets, or managing resources, getting insights from those who’ve been there before helps us avoid repeating the mistakes made in the past.

Coming out stronger

Despite the challenges, Southeast Asia remains a region with enormous potential, and certain sectors are still attracting VC interest. Startups in sectors like AI, automation, and digital health are well-positioned to secure funding, even as other sectors face a funding crunch.

If your startup operates in these high-growth sectors, now is the time to double down on your R&D and innovation efforts. Highlighting the technological edge and long-term growth potential can help you stand out to VCs who are looking for the next big thing in these spaces.

We’re all in this together, and I know how tough it can be to navigate these uncertain times. But by focusing on capital efficiency, strengthening customer relationships, staying agile, and building strong investor ties based on trust, we can set our startups on the path to healthy, sustainable growth for long-term success.

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