Covid is hammering Asian unicorns

An insightful article highlighting the perils of an unsustainable economy propped up by capital-fueled “growth-at-any-cost” model and associated imaginary valuation, unfortunately nowhere close to the actual #valuecreation. In many ways, Southeast Asia’s startup boom was already losing steam. The arrival of the coronavirus only accelerated a shift already in motion. Perhaps a sad reality check for not paying attention to the unit economics. Valuations are shrinking, venture capital-raising has brushed a seven-year low, and the #unicorns for whom profit was a theoretical goal are suddenly being forced to make deep cuts and hard decisions. While the on-going restructuring at many such companies is a painful process, the current environment provides an opportunity for new #startups and for those existing ones who knew they needed to trim some fat ?? #fintech #digitaleconomy #venturecapital

Good Nikkei Asian Review piece on how Covid-19 has exposed weaknesses of SE Asia's over-hyped startups. Investors can take the hit. But I feel for my friends who work at several of these companies. And what's most worrying is outlook for the drivers/contractors with limited or no social safety nets & governments, like Indonesia, who hoped "unicorns" would reshape their economies https://lnkd.in/gbHGEDj

Covid-19 has polarised the market as well as businesses. Those that are able to pivot and agile to change their business models to suit the market needs like amazon and zoom will thrive. Startups are supposed to be agile with business models that fit the needs of the future economy, hence a good timing to accelerate its growth. In short, the dealflow for #venturecapital has increased and is increasing. 危机： opportunities in danger in chinese. So if you’re a #startup looking to #fundraise, look for an angle to position your business to meet the opportunities, in light of covid. #ccpn #tohhb