Let’s face it, capital is the mother’s milk of startup companies. Without enough seed capital, visionaries behind small startup companies would not have enough resources to come up with a prototype for their next big idea. Capital is the oxygen of startup business. This is true for startups starting out in silicon valley, silicon alley, or southeast Asian. This is true everywhere, but there is particular interesting twist when it comes to Southeast Asian startups. Singapore, that little city that could off the tip of Malaysia and near Indonesia is fast becoming a local hub of startup hopes and dreams. It seems that almost all of Southeast Asia’s aspiring internet entrepreneurs and mobile area moguls have congregated in Singapore to pursue their dreams of the next big company taking the world by storm.
This is not surprising. Southeast Asia after all is a very vibrant and huge market place. Hundreds of millions of people in the Southeast Asian market and it can provide a rich market for the next big mobile product. It is also extremely wireless because of infrastructure issues. More people are wired than have a landline. Be that as it may would be mobile and wireless entrepreneur’s face quite a bit of hurdles trying to get funding. There is still a fairly high level of skepticism regarding internet based startups. They are not perceived on the whole as a “real” business venture. A real business venture would fit more traditional business models like shipping, transportation, retail, commerce, banking, and those kinds of things. Also, adding to the skepticism is some hang over from the first .com revolution. We are talking about web1.0 during the turn of the century. Around 2000 a lot of investors got burnt and we’re talking worldwide investors, not just American investors, European investors but worldwide investors got burnt when a lot of digital dreams went up in digital smoke. So there are a lot of mixed emotions regarding this huge ferment regarding mobile technologies and wireless e-commerce and mobile content platforms. This is why it’s quite refreshing to see a company such as 500 startups catering to Southeast Asian entrepreneurial needs.
500 startups is a company that focuses on providing funding to up and coming startups in Southeast Asia. It has a very innovative venture capital approach. Let’s face it. Due to foreign currency restriction of foreign exchange disparities it’s more expensive to fund startups in America and Europe because you’re funding them in the form of dollars and Euros. Moreover, the cost of living there is much higher than in Southeast Asia. 500 startups niche is primarily in traditional markets like Europe and America but it’s increased its allocation to Southeast Asian startups by to 20%. This is huge because the reasons outlined above many traditional sources of venture funds just aren’t there for the rank and file startup in Southeast Asia. The founder of 500 startups is actually quite smart. Dave Mcclour is focusing on investing in a larger a ray of companies and investing relatively small amount of US currency in each of those companies. In other words, instead of 500 startups investing that money in United States and possible only end up funding a small number of companies, their venture capital funding can go much longer way when they fund Southeast Asia companies. They’re taking advantage of the foreign exchange and at the same time funding the hopes and dreams of would be internet moguls and the nest generation internet millionaires.
This is nothing but a win –win, also since 500 startups is already an experienced venture capital outfit they bring a lot more things to the table than just money. Well startups could definitely appreciate the cold heart cash they also need leadership and an experienced point of view. And 500 startups can definitely help on that front. If you’re interested in learning more about 500 startups visit their website at 500.co.