COVID-19 has impacted business markets globally, including Asian markets, requiring companies to have to rethink their business processes.
According to Pymnts, which tracks corporate payment processing system trends, the market for contactless payment systems has grown as much as 500% in some settings. Even though the pandemic will be a thing of the past someday, savvy investors see a lot of room for continued growth because of the innovations made during 2020.
What is the market situation in Asia like?
Some of the markets that have seen the most growth include data analytics and software development, highlighting the importance of technology. In addition to technology, healthcare-related companies are also looking at possible gains as it is.
Chris Smith, one of Playfair Capital’s managing partners, sees 2021 as being a breakout year for companies involved with Infratech.
One of the biggest takeaways from 2020 was that it was a year that initially involved regular economic activity, only to see it slow down and pick up again. There are indicators that 2021 will likely follow similar patterns until the COVID-19 pandemic winds down.
Startups that will benefit from the crisis
The COVID-19 crisis has provided challenges, as well as opportunities, for startups. Marcus Chow, of Bird & Bird, looks at the lower impact of COVID-19 on Southeast Asia than many Western countries as a reason for optimism.
According to Shuhei Yamada of Nikkei, two of the startups that have seen the most growth include Beike, an online real estate company, and MGI Tech, which makes genetic analysis equipment.
Startups that represent technology currently adapted for remote use or that can be adapted for use online stand to benefit the most from the crisis. Even though the circumstances surrounding the pandemic are far from ideal, the situation offers plenty of opportunities to recover.
Survival plan: how to look for a startup investor during a pandemic
One of the essential things to remember when looking for a startup investor during a pandemic is knowing how to market yourself effectively. Making your company stand out will matter even more during this time because of the number of new firms competing for attention.
One of the things that motivate many investors when they are looking for ventures to fund is whether the founders have a sense of purpose. Even though everyone in business wants to make money, the best prospects that venture capitalists want to work with have a sense of purpose that brings results. Proven results mean better returns for their investors.
Industry expertise also motivates many investors looking for startups to support. Anyone with the necessary knowledge is likely to take the risk level needed for overall success. The greater the level of expertise in the field, the more desirable an investor will find the business owner as someone to fund.
One thing that many investors look for when they are seeking a venture to fund is whether there is further room for growth. Many startups founded during the pandemic have a lot of space for future development because of the technology that they have decided to incorporate.
Survival plan: how to survive if your company’s focus is incompatible with the market
Many companies find that their focus is incompatible with the market. However, there are a few ways that companies can adapt to fit in with these changes, rather than allowing them to signal death for their company.
An advantage that many smaller companies have over their peers is not having to spend as much to market their products and services. A smaller startup can devote more of its resources to reaching smaller niches that larger companies may overlook.
Product development cost is also a significant factor in a company’s survival odds. A business that has to make modest changes to what it offers is in a better position than one that has to revamp its entire lineup.
One thing that any company that needs to rebrand itself must keep in mind is to consider which customers make up the most significant share of the revenue base. Losing even a part of the base can be difficult, if not impossible, for a business to rebound from.
Although Asian startups have seen their share of losses due to the COVID-19 pandemic, there is a lot of promise for technology companies. In all circumstances, business owners will do well to have a survival plan if they are unable to find the right investor.