FII conference: open dialogue, ‘hyperlocal’ approach are keys to Asia’s vibrant start-up ecosystem, industry leaders say

Companies must be able to show local policymakers they are there for the long run, WeLab founder tells panel
Private equity must ‘dig’ into the market and identify what gaps can be filled, says COO of venture fund 500 Global

FII conference

Mia Castagnone

Published: 6:30pm, 8 Dec 2023

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“Hyperlocality” and open dialogue between regulators, businesses and investors, can help retain the vibrancy of Asia’s start-up ecosystem, industry leaders said at the FII Priority conference in Hong Kong.

“We apply the same business model and the same technical structure everywhere but we globalise our people and localise our approach,” said Paul Loo the chief operating officer of Hong Kong logistics company Lalamove on a panel about venture capital and Asian start-ups.

According to Crunchbase there was US$22.3 billion invested in Asian start-ups in the third quarter of 2023.

The region is full of top talent, has a strong market and access to capital, said Loo, and this was a key part of the company’s success in expanding in China and beyond.

Lalamove, which was founded in 2013, now operates in more than 30 cities across Asia and Latin America.

Companies must be able to localise themselves to market conditions and show local policymakers they are there for the long run, according to Simon Loong founder and CEO of virtual bank WeLab, who spoke on the same panel on Friday.

“Southeast Asian markets have separate jurisdictions, regulations, currencies,” said Loong.

“We spend a lot of time understanding the market and showing to [the local government] that we’re not here to make a quick buck.”

This approach is often referred to by businesses as “hyperlocality”.

More than 1,000 policymakers, business leaders and investors have gathered for the two-day FII Priority conference in Hong Kong, to discuss the biggest trends that will impact the planet’s future. The summit is organised by the Future Investment Initiative Institute, a think tank backed by Saudi Arabia’s Public Investment Fund.

Organised in partnership with the city’s government and bourse operator Hong Kong Exchanges and Clearing, the event is being held in Asia for the first time.

“Cross-pollination is important,” said another panellist, Yinglan Tan, founding manager partner at Insignia Ventures Partners. “How can you get the best resources available in the region?”

No one country or market will have the best of every resource, so the best strategy is to tap talent and resources in the neighbourhood that might help you to go global later said Tan.

For example, a company may be headquartered in Singapore, tap engineers from China, find their key market in Indonesia and establish their design house in the Philippines, he said.

“Use the resources around the world to create a global company,” said Tan.

Participants also discussed the importance of creating a competitive but friendly environment among venture capital firms and businesses.

“Not every market is going to be like China,” said William Bao Bean, co-founder and managing director of Orbit Startups.

“[Investors] must take some of those lessons and apply them appropriately in the US or the rest of Asia.”

From the investor perspective, communication between stakeholders is the most important thing, he added.

Private equity must “dig” into the market and identify what gaps can be filled, according to Courtney Powell, COO and managing partner at 500 Global, an early-stage venture fund.

“We work with regulators and various government ministries looking at what the gaps are,” said Powell.

“Eventually the goal is to build corridors between countries, in order to tap smaller neighbouring markets in the region.”

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