Just wondering why we don’t hear about any SE Asian startups becoming self-sustaining businesses?
Is this not the goal of any startup? Or of course to be acquired by a bigger company because of what they had developed is also a much-desired option. Two recent unrelated Facebook posts drove me to this train of thought. One focused on some of the ‘hot new’ startups of 2016. The other explained how one of the Singapore based startup ‘darlings’ was in trouble and anticipates many layoffs. (Link 1 below)
I find it strange how the ‘poster child’ for startups is not one that becomes a self-sustaining profitable business, but other startups who raise vast amounts of capital. In sports, rookies are told to look to experienced champions and MVPs. In science, Nobel Prize winners are held in great esteem. Aspiring writers look to Pulitzer Prize winners. So why are SE Asian aspiring founders focusing on pitchmen and not companies who went from startup to IPO or acquisition? Barbara Corcoran from Shark Tank agrees. In a recent interview with Inc. magazine, she talker about the ‘false premise’ (if they have that right idea, they are going to succeed) being pitched to young people today. (Link 2 below)
I completely understand the need for multiple rounds of financing within the startup ethos. How else is a productive company going to expand their offerings and market? But to keep dumping money into a ‘company’ that is just churning and burning cash in the hopes of producing something seems an unsustainable model. Are we heading into a crash like what happened to web companies in 2001? (Link 3 below) I sincerely hope not. But you have to wonder if Angels and VCs will continue funding ideas and dreams instead of prototyped products and/or services – preferably with revenue?
So again, I am just wondering where is the list of successful S.E. Asian startups that have become self-sustaining business?
Link 1: http://techcrunch.com/2016/01/29/asia-tech-media-startup-e27-lays-off-half-of-team-in-restructuring-move/
Link 2: http://www.inc.com/kris-frieswick/drinks-with-barbara-corcoran.html?cid=sf01001&sr_share=twitter
Link 3: http://techcrunch.com/2016/01/31/tech-valuations-in-2016-the-end-of-the-line-for-sloppy-growth/?ncid=rss