Elevated Expectations from Investors: At the Series A level, investors are not just looking for innovative ideas but also for proven business models, revenue streams, and a clear path to profitability. This increased scrutiny requires start-ups to present more than potential; they need to demonstrate real-world traction and a sustainable business model more so in 2023/4 than the previous 5 years.
Regional Market Fragmentation: Southeast Asia is characterised by its diverse cultures, languages, and regulatory landscapes. While this diversity offers a broad market, it also poses significant challenges for scale-ups looking to expand regionally. Companies need to tailor their strategies to each market, complicating their expansion plans and investor pitches.
Intense Competition for Funding: As the start-up ecosystem in SEA matures, the competition for Series A funding intensifies. Companies must differentiate themselves not just from local competitors but also from international players eyeing the growing SEA market.
Matching with the Right Investors: Finding investors who not only provide capital but also align with the company’s vision and offer valuable networks and expertise is more complex at the Series A stage. The focus shifts to strategic partnerships, which requires more thorough research and networking.