Latest news with #Khemlani
Business Insider
4 days ago
- Business
- Business Insider
Southeast Asia's tech startups are chasing the American dream
Yoeven Khemlani knew he wanted to build a product for engineers like him. The Singaporean's friends told him they were spending tons of time maintaining code, web scraping, and translating their work for different markets. In July 2024, he launched JigsawStack, a company to create small models that could automate those tasks. One country — not his own — quickly became the source of his customers. "We saw a huge uptake of users and realized a lot of the early-stage customers that we got were from the US," Khemlani said. JigsawStack, which raised $1.5 million in pre-seed rounds from the venture capital firm Antler's Southeast Asia fund in October and February, is part of a growing group of Southeast Asian startups building products for US-based customers, rather than those in their backyard. For these software startups, the US's rising isolationism isn't threatening their customer base — yet. But sweeping tariffs on China may push up the cost of hardware they need to import into the US, such as servers. "Traditionally, Southeast Asian startups honed in on local or regional markets to solve unique, homegrown challenges," said Jussi Salovaara, a cofounder of Antler who leads investments in Asia. The ride-hailing apps Grab and GoJek — two of the region's best-known startups, now publicly listed — are examples of how founders in the early 2010s built for local needs. "However, as the ecosystem matures, founders are now setting their sights on the US, encouraged by a blend of opportunity and necessity," Salovaara said, adding that he'd seen more of these US-focused startups in the past three years in Southeast Asia. Southeast Asia is growing, but it doesn't have the US's firepower Southeast Asia, a group of 11 countries east of the Indian subcontinent and south of China, has seen skyrocketing economic growth over the past decade. Since 2015, the region's GDP has climbed more than 62% to $4.12 trillion, boosted by a growing middle and upper class. Between 2015 and 2021, the number of venture capital deals within the region more than tripled to 1,800, PitchBook data shows. Activity peaked in 2021 — a similar pattern to startup funding globally. Despite the region's growth, more Southeast Asia startups are choosing to focus on building products for the US, not for those around them. Founders and business experts note that the American market is more concentrated, more mature, and less price sensitive, all of which make it an attractive playing ground for new entrants. Plus, the US is leading in artificial intelligence, the major driver of today's global tech industry. "We're in an AI-first world where currently the US is at the epicenter of driving groundbreaking advancements," said Shailendra Singh, a managing director with Peak XV, the VC firm previously known as Sequoia Capital India & Southeast Asia. "This," he added, "is why we put in a lot of focus and effort on building global go-to-market operating teams in the US." And American businesses are happy to have them. "SEA startups are often positioned to offer high-quality, cost-competitive solutions that can undercut US-based alternatives, making them appealing to American businesses in need of cost-effective innovation," Antler's Salovaara said. To be sure, the model isn't unique to Southeast Asia. Nataliya Wright, an entrepreneurship professor at Columbia Business School, researched startups founded from 2000 to 2015 for a forthcoming paper on scaling. She found that software startups from small countries in Europe, for instance, typically focused on the US from the get-go. Southeast Asian countries such as Thailand and Vietnam, however, are considered midsize markets, with populations in the tens of millions. Startups from midsize markets tended to start with a local focus, assuming there would be enough customers. "A US orientation," Wright told Business Insider, "would suggest a departure from that model." 11 unique markets Working only within the region is tough. Southeast Asia is home to a huge diversity of languages, business practices, and household incomes. "You're spending five times more because you're entering five different markets," Khemlani, the JigsawStack founder, said about working in the region. The US and tech hubs like San Francisco allow startups to find an abundance of customers in one place, or at least in one country. "We don't have the resources to do two streams of marketing," Khemlani said. Having some American customers is good for fundraising, too, said Wright, the Columbia Business School professor. This is because of a bias called "foreign discounting" — VCs based in startup hubs such as Silicon Valley overlook or undervalue startups founded elsewhere, Wright said. When foreign startups show they have US customers, it helps cancel out that bias and could give them a leg up in future fundraising rounds. VCs say founders from the region have advantages. Singh, the Peak XV managing director, said Indian and Southeast Asian startups often have an underdog mindset. "They feel a startup in Silicon Valley is more polished and has better access to capital and talent, so they want to overcompensate by working harder, learning faster, and often they're understated and very hungry for success," he said. Hotbed for innovation Realfast is a Singaporean Peak XV-backed startup that builds AI agents for IT systems. Its cofounder, Sidu Ponnappa, has found that the US is the deepest market for its product. "Everything from deal velocity to deal size operates at a completely different level in the US," Ponnappa said. "Can you do the same thing for other markets? Yes, but it's always lower margin." Guan Dian, who heads the Asia Pacific operations of Patsnap, a software maker for research and development projects that's backed by Vertex Ventures, said the company's founders always thought the US would be a priority market. While the startup has customers in 50 countries, more than half of its 5,000 customers are in the US. She said the company refined its branding to emphasize AI-powered features for industries such as biotech and advanced manufacturing, which dominate US patent filings. Cost consciousness among Southeast Asian customers is another reason founders are reaching abroad. "Southeast Asia is a little bit more price sensitive, and we tend to get a bit more into negotiation," Khemlani said. Cheaper labor means local customers try low-tech solutions or building themselves first, but that's starting to change as AI models get more complex and expensive, Khemlani said. 'Should we move our headquarters to America?' Founders don't want to fully decamp to the US, though, thanks to the ease of doing business in places such as Singapore. For startups including Multiplier, an HR platform backed by Tiger Global and Peak XV, Singapore's strong geopolitical relations with virtually every country are a big advantage over the US. "We do business with China and Taiwan, we do business with India and Pakistan, we do business with America and China," said Sagar Khatri, Multiplier's CEO and cofounder. "We've evaluated time and time again: Should we move our headquarters to America? And the answer has always been no," Khatri said. The founders who spoke with BI also touted Singapore's tax policy — it doesn't tax capital gains — and government grants for tech companies. Some startups are splitting their people, moving one cofounder to the US while the other stays in Southeast Asia. For JigsawStack, being in the US is essential for networking. Khemlani, the founder, spent six months in the US last year and moved permanently this year to scale the startup. "You can't sell to the US when you're not there," he said. "Just going for an event or a hackathon in the US makes such a big difference in your sales."
The Age
30-04-2025
- Politics
- The Age
The ‘Greek volcano' gave a voice to refugees
According to Petro, the interview did not go well. He was convinced he hadn't got the job because he disagreed with Fraser on a range of issues and predictably told him so, bluntly. Ironically, the opposite was true with Fraser saying that he liked him precisely because he spoke his mind and argued with him. Petro was hired that same day. Petro was on the floor of the House of Representatives advising Fraser during the dismissal, even delivering some of the Khemlani papers to Canberra as the coalition blocked supply. During the Fraser years, Petro inspired the introduction of Australian multicultural policies, including the Galbally inquiry; the creation of a new Department of Immigration; the decision to accept tens of thousands of Vietnamese refugees following the fall of Saigon; and the establishment of SBS television, a legacy that endures to this day. He later became the director of the Australian Institute of Multicultural Affairs, where he brought together some of the best and brightest including Professor Louis Waller, Giancarlo Piovano-Martini, Professor Peter Sheldrake, Frank Galbally, Dr Spiro Moraitis, Dr Rubenstein and Joe Szwarc. In the 1980s, the Victorian Liberal Party was reeling from the loss of long-term state and federal governments. The state party was outgunned, under-resourced and undermanned. After working as a senior adviser to Andrew Peacock, Petro was appointed state director following the 1988 Victorian election loss. He moved decisively, quickly transforming the Victorian secretariat into the most dynamic, uncompromising and successful political machine in the country. Petro worked side by side with a young Ted Baillieu, at the time the vice-president and subsequently president of the Victorian Liberal Party. The two were to become lifelong friends. For those who worked with Petro at Liberal Party headquarters, Petro demanded a 24/7 commitment, but he was also inspirational. And so were the results. Nine seats won in Victoria at the 1990 federal election. And then the 1992 'guilty party' election in which Jeff Kennett swept Labor from power. In 1994, Petro was elected the Member for Kooyong and then re-elected five times before retiring at the 2010 election. During his 16 years as a federal MP, he tackled issues with his trademark passion and integrity. Whether it was mandatory detention, laws for the Indigenous, reforms to anti-terrorism legislation, changes to the citizenship test, Australia's voting system or the treatment of asylum seekers, Petro was a fierce advocate for the traditional values of the Liberal Party and human rights. To some, he was considered the conscience of the Liberal Party. Petro, who eschewed ceremony and was proud to describe himself as a 'humble backbencher,' was locked in a two-year struggle with the prime minister to reform Australia's treatment of refugees and asylum seekers. Eventually, Petro prevailed. The Howard government agreed to close refugee detention centres across Australia; release women and children in detention; and grant permanent residency to thousands of asylum seekers, many of whom had been in detention for years. During one of the fiery parliamentary debates over refugees, Petro and Michael Kapel, Petro's long-time adviser, consiglieri and friend were eating lunch in the parliamentary dining room when Gough Whitlam entered the room. Gough saw Petro across the room and made a beeline towards his table. 'Petro,' he said, pointing his walking stick at him. 'I know it was you with Fraser and those Khemlani papers in 1975. But I forgive you, my son. Keep up the fight for those refugees. You are a good man Petro.' He received an AO in 2013 for distinguished service to the parliament of Australia, multiculturalism, human rights advocacy and the community.
Sydney Morning Herald
30-04-2025
- Politics
- Sydney Morning Herald
The ‘Greek volcano' gave a voice to refugees
According to Petro, the interview did not go well. He was convinced he hadn't got the job because he disagreed with Fraser on a range of issues and predictably told him so, bluntly. Ironically, the opposite was true with Fraser saying that he liked him precisely because he spoke his mind and argued with him. Petro was hired that same day. Petro was on the floor of the House of Representatives advising Fraser during the dismissal, even delivering some of the Khemlani papers to Canberra as the coalition blocked supply. During the Fraser years, Petro inspired the introduction of Australian multicultural policies, including the Galbally inquiry; the creation of a new Department of Immigration; the decision to accept tens of thousands of Vietnamese refugees following the fall of Saigon; and the establishment of SBS television, a legacy that endures to this day. He later became the director of the Australian Institute of Multicultural Affairs, where he brought together some of the best and brightest including Professor Louis Waller, Giancarlo Piovano-Martini, Professor Peter Sheldrake, Frank Galbally, Dr Spiro Moraitis, Dr Rubenstein and Joe Szwarc. In the 1980s, the Victorian Liberal Party was reeling from the loss of long-term state and federal governments. The state party was outgunned, under-resourced and undermanned. After working as a senior adviser to Andrew Peacock, Petro was appointed state director following the 1988 Victorian election loss. He moved decisively, quickly transforming the Victorian secretariat into the most dynamic, uncompromising and successful political machine in the country. Petro worked side by side with a young Ted Baillieu, at the time the vice-president and subsequently president of the Victorian Liberal Party. The two were to become lifelong friends. For those who worked with Petro at Liberal Party headquarters, Petro demanded a 24/7 commitment, but he was also inspirational. And so were the results. Nine seats won in Victoria at the 1990 federal election. And then the 1992 'guilty party' election in which Jeff Kennett swept Labor from power. In 1994, Petro was elected the Member for Kooyong and then re-elected five times before retiring at the 2010 election. During his 16 years as a federal MP, he tackled issues with his trademark passion and integrity. Whether it was mandatory detention, laws for the Indigenous, reforms to anti-terrorism legislation, changes to the citizenship test, Australia's voting system or the treatment of asylum seekers, Petro was a fierce advocate for the traditional values of the Liberal Party and human rights. To some, he was considered the conscience of the Liberal Party. Petro, who eschewed ceremony and was proud to describe himself as a 'humble backbencher,' was locked in a two-year struggle with the prime minister to reform Australia's treatment of refugees and asylum seekers. Eventually, Petro prevailed. The Howard government agreed to close refugee detention centres across Australia; release women and children in detention; and grant permanent residency to thousands of asylum seekers, many of whom had been in detention for years. During one of the fiery parliamentary debates over refugees, Petro and Michael Kapel, Petro's long-time adviser, consiglieri and friend were eating lunch in the parliamentary dining room when Gough Whitlam entered the room. Gough saw Petro across the room and made a beeline towards his table. 'Petro,' he said, pointing his walking stick at him. 'I know it was you with Fraser and those Khemlani papers in 1975. But I forgive you, my son. Keep up the fight for those refugees. You are a good man Petro.' He received an AO in 2013 for distinguished service to the parliament of Australia, multiculturalism, human rights advocacy and the community.
