Influenced by an expanding middle class and internet penetration, Southeast Asia is fast becoming a thriving startup market.
Venture catalyst group JDI says founders are no longer limiting themselves to their own countries and instead seeking investment in other regions. Southeast Asia appears to be the global investment choice for many venture capital firms.
You’re probably thinking, “What can I learn from this part of the globe?” A great deal, honestly.
Investors are attracted to high-growth markets with clear paths to profitability, exactly what Southeast Asia represents. A stronger focus on startups in the region prioritizes long-term sustainability over short-term outcomes.
Table of Contents
ToggleA Startup Hotspot You Can’t Ignore
Southeast Asia is no longer the “emerging” market it once was. It’s now a bustling innovation hub.
According to Wows Global, the region boasts over 400 million internet users and has birthed dozens of unicorns, including Grab, Gojek, and Tokopedia.
In 2023 alone, venture capital hit $10 billion, despite global economic uncertainties.
There’s plenty to discover from startups breaking into this vibrant neck of the woods. Below, we’ll discuss the strategies that work and how you can adapt them to your global growth playbook.
Start Small, Scale Smart
A big mistake global startups make is trying to “go big” too fast. In contrast, Southeast Asian startups take a more phased approach.
Take SleekFlow, a Hong Kong-based omnichannel platform. After raising $7 million in 2024, they didn’t immediately try to dominate all markets.
Instead, they expanded strategically and focused on Singapore and Malaysia before targeting other countries.
Start by building a solid foundation in one or two markets. Test your product-market fit, then scale regionally. It’s good business sense to be methodical when navigating diverse cultures, languages, and regulatory frameworks.
Use Employer of Record (EOR) Services to Enter Quickly
There’s been a rising movement of companies sourcing remote staff from other countries.
Hiring local teams is crucial, but setting up an entity in a foreign country can be expensive and time-consuming. That’s where Employer of Record (EOR) solutions come in.
U.S. entrepreneur Nick Huber shared an X post last year saying that the Philippines has workers who can perform tasks as effectively as their American counterparts.
If you decide to invest in the Philippines, a Philippines Employer of Record (EOR) allows you to hire employees without establishing a legal entity.
This means you can onboard talent quickly, stay compliant with local labor laws, and focus on growth. It’s ideal if you’re testing the waters in a new market and want to remain agile.
Global HR and payroll platform Remote advises partnering with a company that manages payroll, employment contracts, and employee benefits.
Think Local From Day One
One size doesn’t fit all in Southeast Asia. The most successful startups are well aware of this.
Localization isn’t about language; it’s user behavior, payment preferences, and even color schemes.
Filipino consumers, for example, might interact differently with mobile apps than their Vietnamese or Thai counterparts. It’s why companies like Grab have built hyperlocal teams to tailor services for each country.
Consider hiring local talent to manage market-specific growth. It improves customer trust and avoids costly missteps.
Partner Up; It’s the Southeast Asian Way
Another major trend in the region is strategic partnerships. Startups often team up with established players (banks, telecom companies, or local distributors) to fast-track user acquisition.
Why go it alone when you can plug into existing networks? This helps with market access and builds credibility, vital in trust-driven industries like fintech and healthcare.
Look for potential partners in your target markets. Think co-branded campaigns, shared infrastructure, or joint ventures because, in many cases, collaboration beats competition.
Secure the Right Capital for the Right Stage
Fundraising in Southeast Asia is evolving. Gone are the days when startups needed to chase huge rounds too early.
Instead, there’s a shift toward smarter capital, raising what’s needed for each growth stage, from angel to Series B.
Tatler Asia reports that startups focusing on profitability and operational efficiency are more likely to attract sustainable investment in 2025 and beyond.
Our advice? Don’t just raise money; raise strategically. Know your burn rate, growth goals, and how each round moves you closer to market leadership.
Stay Sharp and Focused
Southeast Asia’s startup ecosystem is full of ingenuity and grit. However, the real magic lies in how startups adapt to local conditions while keeping their global vision intact.
As a global founder, you can learn from localization and hiring strategies to agile funding and partnerships.
You don’t have to replicate everything. Rather, take a page from the Southeast Asian playbook: think lean, local, and user-first.
Boris Dzhingarov is the CEO of ESBO Ltd, a global digital PR and SEO agency specializing in high-authority link building and multilingual content outreach. With over a decade of experience in digital marketing, Boris helps brands boost visibility, earn media coverage, and scale organic growth. He’s a contributor to Forbes, Entrepreneur, and other leading business publications.
