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Exit Landscape in South East Asia – Note to Founders

rictan0

Founders need to understand the exit landscape from the perspective of financial investors, i.e. Venture Capital (VC) or Private Equity (PE) Fund. Recently, Garena, SEA most valuable tech startup, was reported to appoint Goldman Sachs for a $1bn IPO in the US, the largest ever IPO ever from a SEA-based tech startup.

SEA vs Global Tech Public Market

According to the TechInAsia, there have only been 13 tech IPOs (consumer facing, web 2.0 type) since 2001 from SEA startups. However, these are all mainly bootstrapped other than Migme, which unfortunately has been facing much criticism from the media so far for its poor performance. In other words, there haven’t been any homerun style exits for financial investors so far in the region. In most cases, IPO in SEA is just a fundraising event.

pic-1 Snapshot from “State of SEA Technology Startup Ecosystem

pic-2 Snapshot from “EY Global…

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