- VCs explore Vietnam, Philippines for cheaper deals than pricey Indonesia.
- Young populations, increasing wealth attract investors despite fewer exits.
- Favorable policies could lure more VC funds to these markets.
Pricey Indos? check out these budget-friendly hotspots!
Indonesia’s pricey startup scene prompted venture capitalists to explore value opportunities in Vietnam and the Philippines.
The two nations boast young, large populations of over 100 million alongside increasing wealth. Foreign investments flooding in excited VCs.
Interest in Indonesia pushed local startup valuations uncomfortably high for some investors. Enter Vietnam, Philippines – early-stage gems sans overheated price tags. “They don’t have too much capital chasing too few deals,” notes Golden Gate Ventures’ Vinnie Lauria.
Policy pivot could lure more checks
Demographic potential abounds, but investors seek exits to validate thesis. Indonesia outpaces neighbors 3-to-1 in exits since 2016. “You can’t just provide potential, you have to deliver,” says Cento Ventures’ Boon Ping Chua.
Attractive government incentives aided Indonesian VC boom. Similar policies in Vietnam, Philippines still lacking. But local VCs optimistic – technical talent finally emerging from alumni of regional unicorn offices.
To read the original article: https://www.techinasia.com/vietnam-philippines-attract-vcs-deterred-pricey-indonesian-market-headwinds-bring-hesitation
