Asia's Tech Startups are Thriving In spite of the Pandemic
Asia's tech startups are proven themselves to be resilient against a pandemic that has devastated major corporations. Here's how it's all taking place.
COVID-19 has not only put a burden on the healthcare industry but on the financial sector as well. Businesses and employees alike are struggling to make ends meet.
The full intensity of what the world, in terms of economy, would look like post COVID-19 cannot even be fathomed at this moment. But a glimpse at the current situation indicates that many businesses, particularly small and nascent ones, are going to struggle for a long time to come.
Amid this chaotic situation though, Asia’s tech startup scene is thriving. Just look at how deals continued to happen across the board in China in January and February, when the country was hard hit by the novel coronavirus.
There was an investment of about $10 billion minimum which is good enough considering the circumstances even though overall funding saw a drop. Take a look at other Asian countries too and you’d see the tech startup scene in the continent is thriving.
What’s driving this progress amid a pandemic? Let’s dive into the reasons that explains what’s causing Asia’s tech startup scene to thrive.
1 - Tapping into the right businesses
Nine winners of the Asia-Pacific Low Carbon Lifestyles Challenge 2020 are leading the way. These are all green businesses that focus on “low-carbon energy, plastic waste prevention and low-carbon mobility.”
But this is not all - collaborations between companies to provide social distancing solutions is also one way tech companies are improving operations and thriving in Asia. Take for instance, companies like GoCar and Gojek. Tech company Gojek will be providing partitions to GoCar vehicles to separate drivers and passengers and reduce the risk of coronavirus transmission. This will make things easier for travelers and bring revenue to the companies involved as well.
2 - Digitizing existing businesses
Existing businesses are also adapting by going digital. Tech companies have shifted their attention to cater to people residing in their homes. From online shopping to food delivery apps, meeting apps like Zoom, and much more, there is so much evolution in tech that has taken place and there’s space for more innovation as well.
Not only will this benefit tech companies now but in the future as well since humans are creatures of habit. There’s a chance that months or even years from now, when the pandemic is behind us, people will stick to remote working, shopping online, and using other services that tech companies bring forward now.
Just take online shopping as an example and look at how people have become used to coupons and promo codes for saving money. Successful coupon marketing and couponing apps have brought about this interest in couponing which is here to stay.
3 - Meeting massive market needs
There’s huge demand for technology in Asia. People are looking for digital solutions ranging from cybersecurity to healthcare online. This opens up a massive market for tech startups to serve as the population of middle class people is huge.
Not only is the population more, but the median age in Asia is 30.7 years. Furthermore, people are tech-savvy. All these factors increase the demand as not only are there more consumers in number but these consumers also happen to be those who want digitalization.
4 - Increasing interest in digital solutions
Asian countries are not going digital only because there's a market for it, even though that is one major cause. It’s also that Asian countries such as South Korea, Indonesia, Japan, and Singapore are passionate to adapt and innovate in the field of technology.
Just take a look at how fast India is growing in the tech sector. As for China, that country is behind only the USA when it comes to advancements and investments. Korea is also very technologically advanced and only becoming better and then there is Hong Kong, where the startup scenario has exploded in recent years.
5 - Widening the budget for technology
Governments in Asia have increased their budget for the tech sector and made policies for it friendlier. The plan is to digitize every sector and aspect of life for driving financial growth despite the current unfavorable economic factors.
In this regard, the scene in Europe is not hopeless either as the government has decided to support businesses by funding them. Countries such as the UK are increasing investment for supporting innovative startups. Moreover, Germany and France will also support its tech startups by increasing investments.
With COVID-19 around and no hope for it going away soon, people and businesses are worried. In the midst of all this, Asia’s tech startup scene is continually thriving. How’s that possible?
This is owing to the country’s huge tech-savvy population, keen interest in technological advancement, passion to digitize services, and governmental support. While some factors are naturally in tech’s favor, other countries can learn from Asia the importance and need for tapping into technology without delay.