1. Asia‘s Tech Ecosystem: The Good And The Bad
By Serkan Toto, PhD
www.serkantoto.com
Image credit: Tech In Asia

2. About Me
• Tokyo‐based web, mobile and gaming
industry consultant
• Advisor for startups in Japan and the US
• Japan contributor for TechCrunch.com
• Personal website: www.serkantoto.com

3. Contact InformaJon
Twi%er: hKp://twiKer.com/serkantoto
LinkedIn: hKp://linkedin.com/in/serkantoto
Email: totoserkan AT gmail.com

4. Visit My Website For Free InformaJon On Japan’s
Social Game Industry (hKp://www.serkantoto.com)

5. Agenda
I: Asia’s Startup Ecosystem: The Good
II: Asia’s Startup Ecosystem: The Bad
III: PerspecJves

6. I: Asia’s Startup Ecosystem: The Good

7. Asia: No. 1 Web PopulaJon
‐> More than America and Europe combined.

8. Asia: No. 1 Web PopulaJon
‐> More than America and Europe combined.

9. Asia: Weak In Internet PenetraJon
‐> Worldwide, just Africa is behind Asia. Huge potenJal.
Source: ITU (Interna9onal Telecommunica9on Union)

10. Asia: Mobile Is Big
‐> 11 of the top 20 mobile naJons are in Asia.
Source: Wikipedia

11. Asia: Internet Traffic To Explode By 2015
‐> APAC to overtake North America in monthly web traffic in 2015.
Source: Cisco, Penn Olson

12. Key Take‐aways
• Huge Internet market with big future potenJal
• Very mobile‐centric countries
• Internet usage (fixed and mobile) to explode in
the next years

13. “Asians can only clone!”
Is this true?
Image source: http://www.flickr.com/photos/yamagatacamille/4267887034/

14. Insead‘s Global InnovaJon Index 2011
‐> Asia is doing OK.

15. Example 1: Mobile Web (Japan/1999)
‐> NTT Docomo kickstarted the mobile web with i‐mode.

16. Example 2: Online Gaming (Korea/1996)
‐> Nexon‘s The Kingdom of the Winds is the first MMORPG.
Image source: Gamespot

17. Example 3: Virtual Goods (Korea/1999)
‐> Cyworld popularized virtual items in social networks.

18. Example 4: E‐Publishing (Japan/2006)
‐> Sony was first to market with the PRS 500 e‐reader.

19. Example 5: Broadband (SK, HK, JP/1998)
‐> 94% broadband penetraJon in Korea in 2000.
Image source: Tech In Asia

20. Example 6: Internet Of Things (Japan/1994)
‐> Toyota subsidiary Denso Wave invented QR codes.
Image source: Asiajin

21. Example 7: Mobile Social Gaming (Japan/
2006)
‐> Japan‘s social gaming market will hit US$2.5 billion in 2011
(JP Morgan).

22. SelecJon Of InnovaJve Asian Startups

23. What Can Be Done In Asia‘s Web Scene?
‐> Biggest problem: underdeveloped ecosystems in Asia.
• low number of QUALITY startups • weak exit environment (IPOs, trade sales)
• few competent VCs firms/angel investors • political and legal problems in some
• low propensity of talents to work for South East Asian countries (IP protection,
startups bureaucracy for startups, general political
• few people with an entrepreneurial instability)
mindset • massive “brain drain”
• historically, culturally, and economically • still low Internet penetration
diverse markets • fragmented mobile landscape
• much lower online spend than in North • underdeveloped online and mobile
America or Europe payment infrastructure (if any)
• problematic role of government/ • high web access/data costs
regulations

24. Thank you for listening!
Ques9ons?

25. Contact InformaJon
Twi%er: hKp://twiKer.com/serkantoto
LinkedIn: hKp://linkedin.com/in/serkantoto
Email: totoserkan AT gmail.com