Do you know that Tech Investments in Southeast Asia is Thriving?

For 2016 Q1, investors poured in US$478.4 million into Southeast Asian startups in the first quarter of the year, according to the Tech in Asia database.

This is not surprising from my understanding and observation of the Tech ecosystem. Many investors are looking into SEA market for more Tech investment opportunities namely for 3 reasons:

1. Escalating number of M&A in the SEA region over the past 5 years - Investors look into SEA for investing and harvesting opportunities resulting in M&A y-o-y growth of 150% between 2014 and 2015. From historical trend, the key exit strategy in the future is expected to be through M&A with 535 deals in Asia since 2011. 
2. Existing investors in Asia are expanding beyond China - The fact that China financial market is more volatile over the years increased investors' investment risks in China drastically. This leads to cool down of investments hype in China as investors are turning to emerging markets with phenomenal growth such as SEA for more opportunities. 
3. Singapore's positioning as Hub of M&A in Asia - With the 2nd highest number of transactions in Asia, Singapore is contributing significantly to the number of Tech activities in SEA. The increased activities in Singapore are attracting attention from global investors with portfolio appetite in Asia to look into SEA. Singapore is a good starting place for companies looking to expand across SEA. 

PS: While the momentum of Tech investments in SE Asia continues to be bullish, startups in SE Asia should recognize that the number of investment deals has decreased while the size of investment deals has increased significantly. Earning Potential, Scalability and most importantly, Quality Growth are increasingly emphasised in the due diligence process.