RISE-ing Above: Scaling Southeast Asia's Startup Landscape

RISE-ing Above: Scaling Southeast Asia’s Startup Landscape

May 9, 2024

Interviewed by Nicolas Sauvage on August 20th, 2020

Supachi Parchariyanon’s parents weren’t prophetic after all. Yes, the son they nicknamed “Kid” has grown into something of a wunderkind in the world of innovation. By age 19, he had developed a mobile stock trading app. But as he told Corporate Venture Insider and host TDK Ventures President Nicolas Sauvage, “kid” is a derivation of “khid,” which in his native Thai language means “think.” Mr. And Mrs. Parchariyanon may not have guessed their boy would achieve so much so soon, but their pet name surely inspired him to use his head.

Kid is CEO and co-founder of RISE, which helps companies combat the stagnation and inertia that often plague businesses as they grow to supersize. He founded RISE in January 2016 with the audacious goal of propelling Southeast Asia’s GDP by a formidable 1%.

Rising: The Company’s Purpose

RISE’s mission surrounds promoting a greater synergy between startups and big corporations. Kid believes that innovation inherently lies in entrepreneurial organizations while corporations possess the resources needed to drive growth. If they work together, they can generate extraordinary revenue for the mothership and the startup. His work has already influenced over 6,000 executives in the region and created over $10 million in revenue.

“It’s all about mindset and there are a couple of things the CEO needs to accept: prefer speed over scale and prefer risk over safety,” says Kid.

RISE’s revolutionary impact is anchored in its drive to change the corporate mindset. With its emphasis on empathy, design thinking, and customer feedback, the company is infusing the agile and innovative spirit of startups into the fabric of big corporations. This paradigm shift then enhances their responsiveness and adaptability, making them better poised for the challenges of today’s evolving business landscape.

But this has not been an easy path, especially in more traditional conservative economies like those in Southeast Asia. Kid outlined the challenges and opportunities he faced when founding RISE. There is great innovation in Asia, but investing and scaling startups is a Western culture that is slowly making its way to the other side of the world, he said. With over 400 million people online and a significant portion under 30, the market’s appetite for digital services, fintech, and on-demand offerings is insatiable. The value of creating CVCs here is unmatched. The influx of international investors, as evidenced by the record-breaking $9.3 billion in venture capital investments in 2020, further fuels the startup ecosystem’s growth.

Compared to the Greater Ecosystem

Thailand’s ecosystem to other Southeast Asian countries, kid singled out Singapore and Indonesia. Singapore emerges as a fintech and deep tech hub with robust governmental support, while Indonesia, with a burgeoning middle class, becomes a haven for e-commerce and consumer tech startups. Thailand is where the corporate venture capital scene shines, showcasing the unique synergy between startups and big corporations.

“In Thailand, we have maybe less than 10 venture capital firms, but we have around 30-plus CVCs,” he noted. “So that’s the very different mentality because here the economy is driven by the big private companies.”

Thailand’s embrace of cryptocurrency and the introduction of stock options for startup employees exemplify its proactive approach toward embracing new trends. As Thailand aligns itself with Western business practices, it emerges as a beacon of innovation in the region.

SeaX Ventures

SeaX Ventures, or Southeast Asia Exponential Ventures, is a US-based venture fund that focuses on leveraging RISE’s relationships with over 400+ listed companies. This venture fund was launched to continue promoting RISE’s entrepreneurship mindset and help explore business opportunities with portfolio companies.

“80% of our portfolio is based in the US so we have the edge to bring the startup back to Southeast Asia to introduce our startup to the investor as well as to the core business,” Kid said. “Not only a win from the investment per se but also a win from the business.”

Focusing on innovation and disruption, SeaX Ventures channels its investments into sectors such as renewable energy, artificial intelligence, biotechnology, space technology, and sustainable agriculture. By identifying visionary entrepreneurs and breakthrough technologies, SeaX Ventures contributes to shaping the future landscape of these industries. Their investment philosophy is rooted not only in financial returns but also in the broader positive impacts that their portfolio companies can have on society and the environment. Through a combination of capital infusion and strategic guidance, they play a pivotal role in driving innovation and progress in the sectors that hold the promise of shaping a more sustainable, interconnected, and advanced world.

Becoming a Strong CVC

Many corporate VCs face a crucial juncture around the four-year mark, which determines their survival. Supachai laid this journey out by year- the initial year being considered as a trial period followed by a second year to demonstrate your results. While an extra year may be granted, the subsequent years become extremely challenging. He argues that a longer-term perspective is advised for C-Suite leaders to extend the runway.

“For the investment manager, you need to do something not too long term. If you can run that to be a quick win for the company, that’s gonna help validate the CVC investment,” states Supachai.

After reviewing best practices, the dialogue shifted to common pitfalls corporate VC should avoid. Adopting a “me-too” approach without clear goals and problem statements can create several problems for the company further down the line. Another critical component is establishing your value proposition. The importance of crafting a distinct identity for corporate VCs is valuable because it focuses on creating the distinctive value that your corporation can provide to entrepreneurs.

As Southeast Asia embraces the digital era and witnesses an influx of international investors, RISE’s role becomes even more pronounced. Through initiatives like SeaX Ventures, the journey toward innovation is propelled beyond geographical boundaries. As the region continues to embrace these entrepreneurial transformations, it’s clear that RISE’s legacy is and will continue to be a prime example to those who wish to join the ecosystem.