Why Australian Startups Are Built Differently
Australian startups tend to take a different approach compared to their global peers. As Abheek Anand of Peak XV put it, founders here often focus on profitability and sustainable growth right from the start:
“The last company we partnered with in Australia built their business over six years—bootstrapped, hit profitability early, and only then started considering external capital. These kinds of stories are common in Australia but much rarer in markets with easier access to funding.”
Australia’s scarcity of capital, compared to places like Silicon Valley, leads to what Abheek called “sensible company building.” The downside? Some Australian founders may become overly cautious.
Clayton Chu of Prosus Ventures noted, "Australian founders are conservative by nature, which has its strengths. But we sometimes push them to aim higher because that’s what global investors are looking for. Meanwhile, in Southeast Asia, it’s the opposite—forecasts can be overly optimistic, and we work on reining them in.”
Opportunities (and Pitfalls) in Southeast Asia for Australian Startups
Some Australian startups look to Southeast Asia as their next growth frontier. It’s a fast-growing region with a rising middle class, making it attractive for consumer brands and tech companies alike.
However, Clayton cautioned that Southeast Asia is not a one-size-fits-all market.
“Southeast Asia isn’t homogenous. Singapore is very different from Indonesia or Vietnam—not just economically, but culturally. For instance, Singapore has a median income of around $5,000 USD per month, while the regional average is closer to $450 USD. This affects how businesses should approach each market.”
The stark difference in labour costs also shapes how firms make purchasing decisions. In low-cost countries, hiring additional staff is often cheaper and more efficient than investing in automation.
“In some Southeast Asian markets, businesses prefer hiring more staff over adopting software. I spoke with a Thai conglomerate with $500M in annual revenue, and they still manage HR with Excel. When I asked why they didn’t use a platform like Workday, the CEO said, ‘Why pay for software when I can hire 100 people to do it?’”
Funding: To Raise or Not to Raise?
For many founders, the biggest question is whether they need venture capital at all.
Ben Lindsay of Investible advised founders to think carefully about the expectations that come with VC funding.
“VC funding comes with pressure—you have to grow fast and deliver specific outcomes. If your business doesn’t fit that model, you might be happier without it.”
Similarly, Abheek emphasised that not all successful companies need venture capital.
“The impact of VC is often overrated. Some of the world’s biggest companies didn’t rely heavily on venture capital. If your business has a path to profitability, you don’t need to chase VC funding just because it’s popular.”
Both investors stressed that founders should align their funding strategy with their long-term goals.
As Ben put it: “Ask yourself—do you really need VC funding, or are you better off growing organically? Not every business fits the VC mould and that’s perfectly okay.”
During the panel, one founder shared his frustration with the audience—despite running a successful business generating millions in revenue, he couldn’t secure funding from VCs. “It’s profitable and scalable,” he explained, “but VCs aren’t interested because it’s not a ‘tech play.’”
Abheek noted that venture capital isn’t always the right fit for every business.
"VCs swing for the fences," Abheek said. "They’re looking for companies with 100x potential, knowing most will fail. Even profitable businesses might not align with a VC’s incentive structure."
"VC funding isn’t a badge of success. Sometimes the best founders are the ones who build without it,” Ben added.
The Right Way to Approach Expansion into Asia
Expanding into Asia isn’t just about market size—it’s about building the right relationships.
Ben offered a practical piece of advice for Australian founders entering markets like Indonesia.
“If you want to enter Indonesia, you need two things: a state-owned enterprise (SOE) or a family with a name that carries weight. Otherwise, you’re going to get stuck in endless meetings without progress. It’s a tough market and local partnerships are essential.”
This mirrors how international companies feel when entering Australia.
“Just as Australia is protective of its own industries, Southeast Asian countries are too,” Ben continued. “You need to show that you’re committed to the market and build trust with the right partners.”
We’ve also seen this firsthand at Haymarket HQ, having worked with 1000+ companies to expand into new markets. Many foreign companies we’ve worked with have learnt the hard way that success in Australia isn’t just about having the best product—it’s about building relationships. Spending time on the ground and earning trust matters more than anything.
What APACs VCs Look for When They Invest in Startups in 2024
One of the recurring themes from the panel was the importance of picking a narrow problem to solve—and solving it really well.
Abheek referred to this as focusing on a “narrow wedge with a big toolkit.”
“The most exciting startups focus on solving narrow problems, like compliance software or a specific healthcare workflow. Once they solve that, they expand into adjacent areas. That’s how you build something meaningful.
Ben added that passion is just as critical as focus. “If you’re not passionate about the problem you’re solving, you won’t last. Founders need to convince investors that they’ll still be working on this five to ten years from now.”
Final Thoughts
For founders considering whether to expand into Asia or raise venture capital, the message from our panel was clear:
- Don’t chase funding unless it aligns with your long-term goals.
- Build relationships before entering new markets.
- And most importantly—solve meaningful problems with passion.
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At Haymarket HQ, we’re here to help you make the right connections and increase your access to revenue and funding in APAC.
If you’re ready to explore new markets or need advice on scaling, let’s talk!
