At the Main Stage on Wednesday at Techsauce Global Summit 2019, moderator Chayut Setboonsarng from Reuters led the discussion on what sets unicorns apart from other startups while investors explored the state of the startup ecosystems worldwide and shared the experience of unicorn journeys in different corners of the world.

The Role of Venture Capitalists

Shane Chesson, General Partner at Openspace Ventures from Singapore stated that there has been amazing progress in 2018 for Southeast Asian startups, with many companies showing potential for success in the footsteps of GoJek. 

However, as a venture capitalist, there are three key areas to be considered before funding a startup. Firstly, the details from solutions startups provide, regulations, competitors, just to name a few. The second part is more difficult, as VCs must find an angle that they can contribute to that startup, and seek unique synergy with the tem. Finally, Shane used the term ‘X-ray vision’ to convey the idea that VCs must be able to see the sparkle in the founder’s eyes that signals their determination to make the startup a success.

Key Success Factors for Startups

Meanwhile, Hendrik Susanto, CIO of Traveloka from Singapore said that the crucial elements of success for startups are the skills of its people, and choosing the right target customers. For Traveloka, their target from the start was millennials who are budget-oriented, and the company focused on domestic travel and flights within the Southeast Asia region.

Amer Subhi, Regional Sales Director of Mobileye, from Israel revealed that for him, companies must stick to their objectives and vision. For Mobileye, founders earned nothing from 1996 to 2007 but with the belief that the can change the world, they kept developing their product until Volvo became their first customer. From then, the growth was exponential.

According to Venkatesh Saha, Head of APAC Expansion of TransferWise from Singapore, it’s important to show the team the impact that they are making and to engage employees in the company’s vision to keep everyone motivated. For example, executives in his company would all spend time at the customer support desk to hear feedback from customers in order to improve the product.

Possible Pitfalls for Startups

Shane revealed that the hardest choice companies must make is choosing between developing the product and capturing opportunities, or achieving unit-cost profitability and breaking even. However, he emphasized that startups must first ensure that they are building a good product while making sense economically.

 Hendrik added that companies should always try to find a balance between the acquisition of new technology or building something themselves. This is especially important as all startups want to offer a seamless experience for users, and let everything happen on the same platform.

Conclusion

Apart from internal factors, external factors abound which makes it more difficult to make the right decisions, from regulatory changes to outside competition. However, is possible for unicorns to achieve their status with understanding of their product and customers, and a focus on human resources and long-term goals.