Emily Hubbell asked in Finance 25th Dec '16:In your opinion, how does the startup investment ecosystem differ around the world?
AIDA BINTI IDRIS replied 27th Dec '16:
In my opinion, businesses in developing regions (e.g. most of Southeast Asia) are more dependent on government investment than private equity. Governments not only provide physical infrastructure but are also actively involved as shareholders and board of directors. The drive for growth is aggressive and there are high KPI targets.
On the other hand, in developed countries (e.g. USA and Japan), it is the multinationals that lead most investment activities. Government interest is in corporate taxes and employment.
Interestingly, there are also societies (e.g. Ireland) where angel investors are gaining strength. In these cases, capital gained from successful local entrepreneurs help fledgling SMEs to expand their operations and even venture abroad.
Associate Professor Dr Aida IdrisView all replies to this question
Kuala Lumpur, Malaysia.