Southeast Asia is a diverse region with a growing population and rising incomes. In addition, the region is becoming a popular destination for cryptocurrency entrepreneurs and investors. Indeed, entrepreneurs and investors are looking for startups high growth. An offer that this region of the world can offer them.
More than 600 companies dedicated to cryptocurrencies and blockchain
More than 600 cryptocurrency or blockchain companies are now headquartered in Southeast Asia. This is according to a new report from venture capital investment firm White Star Capital. Much of the recent growth in venture capital financing in the region has come from startups crypto, blockchain and Web3.0. They have attracted nearly $1 billion in funding in 2022 alone. In other words, startup investment funds (VCs) usually make money from their investments in crypto startups. To date, these are on track to exceed the $1.45 billion grand total.
Southeast Asia is becoming attractive to the whole world
The blockchain sector is becoming an important engine in the development of the region. Investors come from all over the world. According to the report from venture capital firm White Star Capital, the most active investors come from the United States, China and Singapore. Amy Zhao, head of the crypto investment fund Ocular, explained the reason for such enthusiasm for the Southeast Asian region: “ While much of the deep fundamental research and infrastructure development in the blockchain space still takes place in the United States, Southeast Asia is ideal for Web3.0 startups offering services aimed at consumers. †
Demographics Serving Cryptocurrencies in Southeast Asia
For Amy Zhao, an investor at Ocular, it’s ” Southeast Asian Demographics [qui] is very Web3-friendly.0”. According to him, a large, dynamic and young population is the key to that attractiveness. † There are younger populations that inherently understand technology and are more willing to try new things. They are [principalement] emerging economies, so the financial aspect of crypto is a big incentive for people to participate. The magnitude of the demographic growth in Southeast Asia can be realized in a few figures. 700 million inhabitants, one of the fastest growing population groups in the world. 480 million of them are active internet users and others are connecting. It is estimated that by 2040, Asia will account for half of global GDP and 40% of global consumption. Much of it is attributed to the Association of Southeast Asian Nations (ASEAN).
ASEAN ready to bet on cryptocurrencies
The Association of Southeast Asian Nations (ASEAN) has 10 member countries. Created by Indonesia, Malaysia, Singapore, Thailand and the Philippines in 1967, it was joined by Brunei (1984), Vietnam (1995), Laos and Burma (1997) and finally Cambodia (1999). Like other developing countries, large segments of the population in Southeast Asia still have limited access to banking services, despite the region’s significant progress towards financial inclusion over the past decade. More than 70% of the adult population remained lower bench ” Where ” without bank account According to a 2019 Bain & Company report. Therefore, this lack of access to banking services leaves a huge market share for decentralized finance (DeFi)…
Southeast Asia: a diverse region with a multitude of markets
The cryptocurrency adoption rate in Southeast Asia averaged 3.56% in 2021. But Singapore stood out with nearly 10% of the population owning cryptocurrency, ahead of the United States at 8.3%, according to White Star Capital. According to Chainalysis, Vietnam and Thailand were only behind the United States in terms of DeFi adoption in 2021. † Every country in the region has its small edge when it comes to crypto innovation Amy Zhao notes. Vietnam is a source hard core engineers while the Philippines is all about entertainment. Thailand, on the other hand, has a vibrant financial market. Singapore is likely to produce more SaaS products given the international talent pool. Indonesia is catching up with Web3.0, probably because its huge talent pool still relies on its Web2.0 industry. But the country is also home to one of the best-funded blockchain companies in the region: crypto trading platform Pintu, which recently brought in more than $110 million from its Series B.
The lack of banking services for precarious populations, strong growth, a young population interested in new technologies, different markets and qualities specific to each country: this is an explosive combination of success. We also know that many blockchain-based video games are popular, or even developed there, in Southeast Asia. Like Sky Mavis’ Axie Infinity, based in Vietnam, which has many followers in the Philippines and Indonesia. The region certainly promises to be a new pool of Web3.0.
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Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! Yes, I am convinced that the two are closely linked: blockchain and NFTs are revolutionizing many sectors and offering unprecedented opportunities.