The booming technology startup ecosystem of Asia is the new talk of the town. The days where it was hiding in the shadows are long gone. This regional ecosystem has been making exceptional strides over the last couple of years.
The last decade has been one of the most rewarding periods for Asia’s tech startup scene. It has remained unparalleled in terms of investment activity and commercial innovation. Despite earning immense global recognition, the success of this ecosystem is still a mystery to many outsiders.
There are many reasons for that. One of the biggest reasons is the geographical distance between Asia and the West. This distance has led to commercial and cultural differences between the two regions. Therefore, it’s hard for the outsiders to keep up with the innovative and technological development this region has been making.
Anyone who wants to capitalise on the extraordinary growth of this region needs to learn all that is happening on the ground. In this article, we are going to learn all that is causing the tech startup ecosystem of Asia to thrive. So, continue reading.
The surge of the tech startup ecosystem of Asia
The young and vigorous tech startup scene in Asia is taking over the global tech market by storm. According to the figures collected by McKinsey Global Institute in 2019, more than one-third of the world’s best startups are in Asia.
That makes 119 of the 331 global startups. Among these, 91 startup s are China-based. Thirteen of them belong to India whereas six of them are from South Korea and four from Indonesia.
Be it, autonomous vehicles, AI, Virtual reality, drones, robotics or 3D printing, Asia has become the top destination for venture capitals globally.
Only China is responsible for providing around 20 per cent of global venture capital. The following are the reasons why the tech ecosystem of Asia is flourishing at an astonishingly fast pace.
Passion to digitalise
Adapting the latest technology has played the biggest role in Asia’s tech ecosystem’s success. Companies are keen to transform their operations by hopping on the growing technological trends.
They are not afraid of the change and are ready to adapt to the technological development. The sluggish economic growth of Asia is gradually picking its pace. This growth can be attributed to the desire of Asian startups to innovate with time.
The majority of the Asian startups have grabbed the opportunities that technology had offered them. In India, system integrators are part of almost every startup.
Since companies are ready to integrate a combination of technologies in their systems, it is a big step forward to revolutionising the entire tech startup scene. By keeping up with the latest technology Asian companies such as Grab, Sea and GO-JEK Indonesia have taken the lead.
In Korea, everything is being reshaped by technology. India’s mobile-first economy has become one of the prominent names in the list of tech giants.
Japan, China, Singapore, and South Korea are only a few of the Asian nations which are paving way for the digital revolutionization of the world. By digitalizing the market, these nations are taking their economic growth to the next level.
Also Read: IdeaSpace launches new fund for early-stage startups in the Philippines
Exceptional market conditions
Another important reason why Asia’s tech ecosystem is growing at a rapid pace is the ever-increasing consumer demands. The Asian middle class is set to hit three billion by 2040. Each year millions of new consumers are added to the population.
These consumers have demands technology needs to fulfill by innovating health-tech, fintech, cyber-security and a lot more. This is what is creating more opportunities and driving the Asia tech startup ecosystem.
Support from the government
According to research, it is expected that Asia will generate more than 50 per cent of the GDP while driving 40 per cent of the global consumption this year. The governments in Asia has been playing an instrumental role in supporting the tech startup ecosystem.
They are committed to establishing this sector by imposing technology-friendly policies. They are also investing a good percentage of their budget in tech businesses. This helps them attract venture capital investors and private established businesses to take an interest in the local tech scene.
Asia is revolutionising the global tech market. Soon every aspect of life will be digitalized. Companies need to be more open to integrating new technologies into their business operations.
Asian startups understand the need to familiarise with the advanced technology and how to translate it into their financial growth.
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