The new German Accelerator Southeast Asia funding program will launch in Singapore in March 2018. The jury has now chosen three promising German startups. Six finalists were selected from 13 applicants in the first round of the accelerator program, which began in Singapore in March 2018. Munich-based companies tiramizoo (last-mile optimization), Werthstein (digital asset management), and the Würzburg-based sensor technology provider iNDTact ultimately won over the selection committee.
In addition to the USA, more and more startups are discovering the Asian growth market for themselves: the customer potential, the openness towards startups and the infrastructure, especially in the Singapore hub, create ideal conditions. Claus J. Karthe, CEO of German Accelerators Southeast Asia:
"Singapore was and remains the prime trading hub in Southeast Asia—due to its fantastic infrastructure, excellent investment climate, growth-promoting programs, and a very open-minded government. Combined with the legal certainty there, it's easy for German companies to gain a foothold and launch their Asian expansion. We at German Accelerator are pleased to facilitate the path here for German startups with our local expertise and are thrilled to welcome three companies from the fintech, IoT sensor technology, and transportation sectors as the first participants in our five-month program."
German technology is in demand in Asia
The potential is enormous: 560 million people live in the region's five largest countries – Indonesia, the Philippines, Vietnam, Thailand, and Malaysia. Indonesia is the fourth-largest country in the world after China, India, and the USA. It's a very young region with a keen interest in trends. More than half of the population is under 30 years old. Furthermore, Southeast Asia is the fastest-growing internet region – a CAGR of 14.1% over five years. German technology is highly valued in Asia.
“We are proud to expand our international presence with the support of German Accelerator Southeast Asia,”
says Michael Löhr, Founder and Managing Director of tiramizoo.
“Especially in Asia’s megacities, intelligent solutions for efficient last-mile logistics are needed.”
Head of International Business Julian Kellermann added:
“Thanks to our modular product portfolio, we are able to take into account local specifics of last-mile delivery in Asia.”
Giles Keating, co-founder of Werthstein and President of the Werthstein Institute says:
"We are confident that our offering will appeal to Asia's inquisitive and rapidly growing middle class. The German Accelerator and its network in Asia will hopefully help our plans become reality quickly."
Network aims to facilitate market entry
However, alongside the opportunities, there are also challenges in expanding into Southeast Asia, including the cultural and linguistic diversity of the region, such as Claus J. Karthe to consider:
"Even without the core countries of India and China, the region is vast and, with 560 million young consumers, highly interesting. However, the market as such is not homogeneous and requires dedicated, individual go-to-market strategies, which we define with the startups and then implement with support. Mutual trust is also essential here to establish a business relationship. Interpersonal interaction and relationship building are significantly more relevant than in Germany, and purchasing decisions are much more often made not based on product specifications, but on the relationship with the company and local integration. Here, we actively support the participating startups with our network, built over 25 years, to facilitate their entry into the Southeast Asian market."
Clemens Launer, CEO and CFO of iNDTact, sees exactly these benefits of the program for his company:
"We've learned from our business trips to Southeast Asia so far that the Asian market behaves differently than the European one, and that business initiation and communication follow different rules. We hope that the program will help us further expand our skills and experience in the Asian market, establish good contacts, and generate enough traction to perhaps even ultimately lay the foundations for a local branch."
The “Made in Germany” brand should be strengthened
Following the successful German Accelerator Tech (Silicon Valley, San Francisco, and New York) and German Accelerator Life Sciences (Boston) programs, the German Accelerator Southeast Asia program, the first program round in Singapore, will launch in March 2018. Core elements of the five-month support program include free office space in Singapore, access to experienced mentors and their networks, support in finding Asian VC opportunities, and the validation and adaptation of corporate strategies to local markets. A special feature is the discussion of value co-creation in the Asian market to achieve further cost and efficiency potential.
The program is funded by the Federal Ministry for Economic Affairs and Energy, and participation is free for startups. It therefore represents a unique opportunity for them to implement their strategic expansion into Asia in a focused manner. The program aims to help German startups achieve international growth, which also creates jobs in their home country. This also strengthens Germany as a center of innovation and the "Made in Germany" brand.
