A Journey Through Angel Investing in Asia: Key Takeaways from our Epic Investors
What do an American-born Chinese, an overseas Singaporean, and a Dutch professor have in common? These women live in different corners of the world but are united by a common purpose: they are actively investing in Asian startups, driven by their shared belief in the region's burgeoning potential.
In our recent Epic Angels Investor Talk podcast, we had an enlightening conversation with Sha-Mayn Teh , Katherine Li , and Maaike Doyer . Sha-Mayn, born in Singapore and now based in New York, Katherine, an Asian American born and raised in the US, and Maaike, a Dutch national who has lived in both San Francisco and Singapore, bring distinct perspectives to the discussion.
Despite their different backgrounds, they all see immense opportunities in the Asian startup ecosystem. Here's what they shared in the webinar:
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Greater Value for Money
Unlike in the US where $5,000 might evaporate in a day, the same amount in many parts of Asia can support a small team for a month. The lower operating costs in Asia mean that investors can have a significant impact, even with modest investments. This makes investing in Asia an attractive option for angel investors seeking to stretch their dollar further.
Making an Impact
Many startups in Asia are focused on solving real-world, human-centric problems. They strive to fill critical gaps in access to essential services such as financial products, healthcare, and education, supported by robust business models. These startups not only offer investors the chance to achieve good returns but also create substantial societal impact.
Asia as a Rising Economic Power
With projections showing Asia is set to account for over half of global GDP by 2030, the region's increasing economic influence is undeniable. Asia offers a wealth of opportunities for investors and startups, although this also comes with its set of risks, such as political instability.
The Power of Networking
The complexity and diversity of the Asian market can be daunting for lone investors, especially those based in the US. Networking and joining local investment groups can provide invaluable insights into the local business dynamics. Through Epic Angels, we to foster a collective of investors to navigate this exhilarating journey together.
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Case Studies: Boost Capital, InvestEd, and Sehat Kahani
During our discussion, we delved into the stories of Boost Capital, InvestEd, and Sehat Kahani, three startups that perfectly encapsulate the opportunities and impacts that arise from investing in Asia.
Boost Capital, based in Singapore, is revolutionizing banking for the unbanked in Cambodia and The Philippines, by leveraging the region's high mobile penetration. InvestEd, based in The Philippines, uses a unique algorithm to offer student loans, thus bridging a significant educational gap.
Meanwhile, Sehat Kahani, an innovative health tech startup in Pakistan, is transforming the healthcare landscape by creating an all-female network of home-based doctors. They offer telehealth services to underserved communities, thus bridging healthcare access gaps and offering women doctors an opportunity to practice their profession.
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A Different Investing Landscape
Venturing into Asia's startup scene unveils stark contrasts with Western markets. One key difference is that while the West tends to be risk-averse, Asia's startup scene is brimming with energy and rich in opportunities. Active government involvement in countries like Malaysia and Singapore, along with lower seed round sizing, often leaves room for angel investments to exert strategic influence over the company’s direction.
The region's linguistic diversity and regulatory variances present unique challenges, requiring investors to adopt flexible approaches and readiness to adapt. However, these very factors make Asia a thrilling space for investment.
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An Inviting Ecosystem for Women
An encouraging trend observed in Asia is the increasing number of female startup founders. This could potentially make the region more appealing to female investors, and startups like Sehat Kahani are leading examples of women-powered ventures making a significant impact.
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Conclusion
In summary, Asia presents a captivating mix of opportunities and challenges for angel investors. To successfully navigate this landscape, investors should aim for a comprehensive understanding of the region's unique cultural, regulatory, and business dynamics. Networking and firsthand experiences in the region can be invaluable in gaining these insights. At Epic Angels, we aim to help investors undertake this exciting journey, making investing in Asia not only profitable but also impactful and meaningful. We are firm believers in the potential that Asia holds, and with the right knowledge and approach, we trust that you too can become part of shaping this dynamic region's future.
Purposely driving sustainable change through technology and innovation in emerging markets. (ex-KPMG and Westpac)
1 年Rahul Mucherla & Abdullah Khan
Katherine Li Sha-Mayn Teh