Asia’s startup scene hit with reality check While headlines trumpet a global venture funding surge, fueled by North America and one company's AI ambitions, the ground reality in Asia, particularly China, paints a drastically different picture. And Southeast Asia? Sometimes it seems like we’re just screaming into the abyss, wishing that somebody, anybody would hear us.

AI Gold Rush, Asia's Silent Pain?

Let's be blunt: the OpenAI anomaly is distorting the entire global venture landscape. One $40 billion round – a third of all funding worldwide – completely changes the picture. It’s akin to watching a giant sequoia suck up all the water, soil nutrients and sun through photosynthesis from the entire forest floor. When it flourishes, all else fails to flourish. While everyone's mesmerized by the shimmering AI gold, we need to ask: what's the real cost?

Asia’s funding has since dropped to its lowest levels since before 2014. China's VC investment almost halved. Europe stagnated. All while North America basks in the glow of OpenAI’s mega-round. It’s a story of two industries and to be honest, it smells of favoritism.

Think about this: that $40 billion could have funded hundreds, thousands, of promising startups across Asia. Startups developing solutions specifically served to their hyper-local markets, producing tangible jobs and accelerating innovation from the bottom up. Instead, all eyes are on one company. Retrofitting is pursuing a future that may very well not come as quickly as everyone is hoping and banking on.

Philippine Blockchain: Resilience Over Resources

The Philippines is the poster child for this underappreciated opportunity. Picture a bustling innovation hub of blockchain startups, addressing government and business challenges such as financial inclusion and supply chain transparency. They're scrappy, innovative, and full of potential. They're starved for capital.

I’ve met entrepreneurial founders in Manila who are hell bent to make their startup work. Yet they are bootstrapping their businesses by piecing together funding from angel investors and small grants. They’re up against the greenfield development in North America that has the benefit of almost unlimited resources at its disposal. It’s David versus Goliath, only David’s sling is a few pieces short of a full weapon.

  • They are the underdogs.
  • They are building real solutions for real people.
  • They are determined to succeed, despite the odds.

These are the kind of stories that should be winning. Those are the companies that we should be betting on and investing in. Yet, all of these important concerns are being drowned out by the roar of the AI hype machine.

Beyond AI: Southeast Asia's Untapped Potential

Is this AI gold rush causing us to overlook opportunities right under our noses? Have we become so enamored with what’s next that we can’t see the possibilities in places such as Southeast Asia? To that, I say a very emphatic yes.

Southeast Asia offers a wealth of opportunities in areas like:

  • Fintech: Millions of people in the region are unbanked or underbanked, creating a massive opportunity for innovative financial solutions.
  • E-commerce: The region's rapidly growing middle class is driving demand for online shopping, creating opportunities for e-commerce startups.
  • Logistics: Southeast Asia's complex geography and infrastructure create challenges for logistics companies, but also opportunities for innovative solutions.
  • Blockchain: As mentioned earlier, blockchain can address unique challenges in the region, such as supply chain transparency and identity management.

These are not just new business development opportunities. They are opportunities to improve quality of life, increase economic development, and build a more equitable future for everyone. By overlooking these opportunities, we're not just missing out on potential returns. We're missing out on the chance to make a real difference.

Nowhere is that potential more apparent than in the growing tech scene of Southeast Asia – so let’s look below the surface to see what’s next. This is the time to double-down on investment in the actual economy to deliver what Americans need. Back the companies building solutions for actual people—and maybe just unleash the founders dedicated to building companies that change the world.

Angel investors, VC firms, and others that invest in these frequently-underappreciated companies will reap the financial returns on their investments. Beyond this, they’ll become part of a movement that’s leading the way on innovation and building a more just and equitable future. Don’t get dazzled by the AI gold rush into missing out on the real opportunities. It's time to hear the forgotten voices. It's time to invest in Asia's future.