E-HEALTH IN INDONESIA…
With only one doctor per 3,333 people in Indonesia, plus the complication of six thousand inhabited islands, tele-health and e-health solutions will be in high demand as the telecommunications infrastructure in remote areas improves.
The universal health care scheme (JKN) introduced in January 2014 strengthens the imperative to quickly leverage technology solutions like that offered by Indonesian startup HaloDoc.
The JKN also offers many opportunities for companies using technology to improve the efficiency of the scheme as well as distribute its resources.
Southeast Asian venture capital investors are more willing to take educated risks on startups. Success in foreign markets hinges on finding the right local partners, and in particular local market venture capital (VC) investors.
VC dollars fund expansion but the critical VC asset is deep local market knowledge and ongoing support as a company expands and new roadblocks emerge. Finding the right VC willing to put significant ‘skin in your game’ is essential when it comes to being put in a position to be successful.
Pitching ideas to investors at the Tech in Asia conference, Robin McGowan, co-founder of Institchu, an online Australian tailoring startup, says Southeast Asian investors are more willing to invest in businesses with clear growth potential but yet to generate profit.
Their Australian counterparts tend to favour profit and traditional metrics when assessing opportunities, McGowan says.
Big venture capital dollars are being mobilised to focus specifically on Southeast Asia. Serious VCs are setting up in the region. VCs from Slipi-con Valley in Jakarta for example are clearly signalling to the market the technologies and industries they want to invest in.
Telstra Ventures recently invested around $A10 million in Southeast Asian venture fund Monk Hill’sfirst fund as a limited partner. This shows both its perception of the potential in the region and understanding of the need to partner with local assets in markets with which it is not familiar.
Australian startups which fit regional VCs’ target lists, needs to put themselves on the radar in South East Asia.
Successful startups eventually reach a certain size and need to expand into overseas markets for:
• Larger markets to reach more customers
• Funding to expand operations
• Talent for expansion
Southeast Asia will not be the right move for all startups, but the region needs to be in the conversation when weighing up potential expansion destinations in the next engine room, -or more accurately the next server room - for world economic growth.
Josh Tanchel is at Partner at Deloitte Private
You can read more on the changing startup landscape in The fintech revolution: slower burn or slowly burning?
A version of this story originally appeared on Deloitte Private