The Funding Options for Pre-Seed Stage Startups in Southeast Asia
In Southeast Asia, there are many options for funding pre-seed startups. The average ticket size of investment ranges from $50,000 to $250,000.
The Main Players
Angels and VCs
They invest in pre-seed startups based on their high conviction. Angels usually invest in early and seed-stage startups in exchange for equity, and are often founders or senior executives from other startups.
They are usually strategic investors who provide significant advice and connections to add value to the startup business. Some of the most active investors in Southeast Asia include 500 Startups, Jungle Ventures, and Golden Gate Ventures.
Accelerators provide seed funding for startups based on their acceptance into the accelerator program, typically in exchange for a small equity stake (10% or less). Some of the most active accelerators include SMU BIG and TechStars.
Incubators provide office space, mentoring and support services for startups as a way to help them become viable businesses with potential exits for investors.
Many governments have funds to support innovation and entrepreneurship, including Singapore’s SGStartup (Enterprise Singapore)
In conclusion, pre-seed stage startups in Southeast Asia face the same challenges as those in other parts of the world.
However, there are many opportunities for funding thanks to the growing number of investors who are investing in Southeast Asia.