Raising capital for a startup has traditionally been one of the most difficult parts of getting a business off the ground. But times are changing and many Asian startups have become billion-dollar success stories.
In just four years, Xiaomi Corp, China's largest smartphone vendor, became the world's most valuable technology startup with a valuation of more than $46 billion in December.
"Given Asia's high GDP growth and rapidly growing market size, it was natural for investors to look at China and other parts of Asia as places to invest," said Raman Chitkara, who leads the global technology practice at PricewaterhouseCoopers.
"They see the power of Asia?rapidly growing markets, rising new middle class, and growing urbanization?as accelerators for growth and high valuations. There is an entrepreneurial culture in Asia, particularly in China and India, and startups present a certain level of excitement.
"That, plus the potential for economic prosperity by building large-scale value over a short period of time, attracts people to start a business."
Zhongguancun district in Beijing alone gave birth to 49 startups a day last year. The State Administration for Industry and Commerce said nearly 3 million people set up their own businesses for the first time in the nine months from March last year, after China reduced the threshold for those who want to register a business.
At present, China has more than 1,600 technology incubators and hosts more than 1,000 entities investing in startups, with total venture capital exceeding 350 billion yuan ($56 billion).
Early this year, the government decided to set up a new national venture capital fund to help startups and promising entrepreneurs. The $6.5 billion fund will be used to support seed-stage technology startups in the country.
Peng T. Ong, founder of Match.com, the pioneering online dating service set up 20 years ago, recalled his tough days of searching for an investor for his startup business.
"It was harder then," said Ong, who now runs Monk's Hill Ventures, a venture capital firm in Singapore that invests in technology startups in Asia.
"But things have changed dramatically. With more business successes, huge Internet penetration and more mobile telephones, the Asian startup scene is altogether different now."
Flipkart, India's largest retailer by sales, has a success story similar to that of Xiaomi. Now valued at $15 billion, it was started by two friends a few years ago with $6,000 saved from their earnings.
