Asia is generating a constant stream of billion-dollar success stories, and venture capitalists (VC) are definitely paying close attention with their investment dollars. With economic growth, a rising new middle class, growing urbanization across Asian cities, and more mobile reach to developing countries, Asia is securing more investments than any other region outside the U.S. The market share happening in the continent could very much soon rival that of Silicon Valley’s. Given Asia’s high GDP growth and rapidly growing market size, Asia’s economic power is incentivizing VCs to pour capital into more startups.
Huge population concentrations are the main advantage for the APAC region, with a total population of more than 4.3 billion, with at least 1 billion in China and India. However, one challenge is to increase internet usage for the entire region, an untapped market with huge market potential. Asia also has 48.2% of the world’s Internet population with a 40.2% penetration rate so far, and the rest of world is at 51.8%. With billions of people, that is the main factor at stake for many Asian cities to become the next major tech hub, and VCs are definitely taking that fact into consideration.
Mobile is the future of the internet, and will increase further penetration rates. The innovation of smartphone technologies has definitely influenced Asia, as the APAC region will generate 40 percent of total smartphone traffic by the end 2021, due to a populous region and a rapid growth in mobile subscriptions. China and India have two of the world’s largest smartphone markets, making investors interested in figuring out how to make more money from their consumers. [Read more…]