Eye on Asia | As Singapore Exchange opens floor to SPACs, new vistas await Southeast Asian start-ups
- A pathway to growth has emerged for smaller start-ups with overly localised or fragmented business models misunderstood by US investors or those without a clear internationalisation strategy
Special purpose acquisition companies accounted for 79 per cent of all initial public offerings in the United States in the first three months of this year alone. The numbers are promising, pointing to a change in market sentiment after the number of US public companies hit new lows in the past two decades.
Southeast Asia has shown its investment potential in recent years. Funding trends in the region saw venture capital firms hit a new record of 393 investments in start-ups in the first half of the year, concentrated across early-stage start-ups.
The emphasis on early-stage deals exemplifies not only the healthy entrepreneurial environment offered by the region but also recognition of its long-term potential.
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