In the previous part of this series, we talked about how WeWork’s failure to get publicly listed had pushed for change in the Southeast Asian startup ecosystem. As investors and the public began to be critical of a tech company’s valuation and ability to make profits –as any ‘real’ business should– startups might find themselves being under tight scrutiny.
This, as we may have noticed the last quarter of 2019, had led to several leading startups to include profitability as part of their New Year’s resolutions.
The year 2019 also saw greater collaboration between the tech community and other industries. As part of its effort to diversify its portfolio (and drive profitability), venture capital (VC) firms were also investing in sectors such as hospitality and F&B.
In this episode, we are going to focus on the key elements of the Southeast Asian startup ecosystem itself: The people who are running it and the influence that they can have.
All eyes on founders
A few years ago, I went to a demo day event in Jakarta that had 500 Startups Managing Partner Khailee Ng as a keynote speaker. In his speech, Ng likened running a startup today with “watching a spectator sport.”
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Like football games, audience gathers in a venue to see their favourite startups pitching. Also, like in football games, they comment on startup founders’ presentation and make bets on who is going to come out as first prize winner.
The startup community also produces a number of its own celebrities –very much like football players.
Like athletes who branch out to become business people or fashion models, these startup founders also find that their presence was needed in places other than tech.
After covering the Indonesian startup ecosystem for more than three years, I can tell you how the local media portrayed startup founders, particularly those of major companies such as Tokopedia or gojek. The coverage is often overwhelmingly positive: Founders are being lauded for their youth and potentials. They are seen as heroes who are set to make a positive impact on society. Think young Anakin Skywalker before he turns into the dark side, or Tom Riddle when he still had his nose intact.
These potentials did not go unnoticed by the authority.
Rise to power
I have been covering the Southeast Asian startup ecosystem for almost five years and I can tell you some moments that I am going to carry with me forever. One of them is when Nadiem Makarim was announced by President Joko Widodo as Indonesia’s new minister of education and culture.
Apparently his success in disrupting one sector has led him to be trusted with disrupting another.
Startup founders entering public service does not happen exclusively in Indonesia. In Malaysia, three startup founders had been appointed to the National Economic Action Council (NEAC). In Thailand, former StockRadars managing partner Pakornwut Udompipatskul had won a local election and is leaving the company to focus on public service.
Even in the US, Democrat presidential candidate Andrew Yang is one example of presidential hopefuls with a background in tech entrepreneurship.
The next decade
There are many reasons to be happy about this development. For the millennial generation, this is an opportunity to get their voices represented and heard. For startup founders, this is a sign that they are having an impact beyond their everyday work in the tech industry.
So, how will the next decade look like for the Southeast Asian startup community?
What we can say for sure is that there will be more coming up.
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Soon after Nadiem Makarim’s appointment as minister of education and culture, President Joko Widodo named two startup founders — Ruangguru’s Adamas Belva Devara and Amartha’s Andi Taufan Garuda Putra– as his presidential special staff. Apart from these people, there are also startup founders who have had enlisted themselves as members of a political party.
What remains to be seen is where this is going to happen. Our prediction is that more and more countries in the region are going to be more welcoming of startup founders becoming politicians, but we are also aware that the situation is not always that simple. There are unique barriers to entry in every market. But since startup founders had proven from time to time their ability to disrupt and innovate, we are ready to be surprised.
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Image Credit: Sarthak Navjivan on Unsplash
The post Why 2019 is a game-changing year for Southeast Asian startup ecosystem – Part 2 appeared first on e27.