While there hasn’t been any notable exits from Malaysia in 2016, the Bamboo Report by Golden Gate Venture projected a 500% increase in the number of mergers and acquisitions in the SEA region from 2015 – 2020. An increase in the number of exits is an indicator of a prosperous startup ecosystem. It not only denotes that startups from the ecosystem can succeed, but also that many of the entrepreneurs will come back as angels and VCs.
This creates a virtuous loop of support for future generations of entrepreneurs and innovators at different stages of the startup life cycle.
Our panel remains mostly conservative on having more exits from Malaysian startups this year. Interestingly however, the investor group was the most positive, citing yes at 71%.
Some highlights from the discussion of this question:
Investment Manager at Teak Capital
“I expect 2017 to be an eventful year. More startups are being approached by large corporations(both local and foreign) for a possible buyout or an offer for a significant strategic stake in the company. A precursor of exciting news to come”
Do-Director at The Founder Institute
“Yes for more acquire-hire, some startups are meant to be joining forces with the acquirer for brand positioning and market access.”
Entrepreneur In Residence at QuestVC
“As more regional startups grow (Carousell, Grab, etc) and as Southeast Asia becomes a greater focus for tech giants (Amazon, Alibaba), it makes sense for more acquisitions to happen within the region.”