A blueprint for startup success in Asia

The startup ecosystem in Asia, particularly in Singapore, is evolving rapidly. At the forefront of this evolution is MultiPeak, an innovation lab and startup accelerator that has carved a niche with a unique and adaptive business model.

This article delves into the key insights shared by Henry Maillet, CEO of MultiPeak, during an insightful discussion on the startup world in Asia hosted by Donnie Maclary, Senior Principal Recruitment Consultant at Airswift.

Listen to the full episode below:

Multipeak's unique business model

Running a startup is not a sprint; it is a marathon. You have to be prepared, have patience, and not be discouraged.

Henry emphasised the importance of this model as it allows Multipeak to stand out in the startup ecosystem by combining its roles as an innovation lab and a startup accelerator.

Unlike traditional accelerators focusing on a single industry, Multipeak spans multiple sectors, enhancing its value proposition. The company partners with early-stage startups globally, taking equity stakes and helping them develop proof of concept (POC).

Beyond financial investment, Multipeak provides strategic support, connects startups with venture capitalists (VCs) and private equity (PE) firms, and taps into a broad spectrum of technologies and industries.

With around 300 technologies under its belt and plans to double this number, Multipeak is a powerhouse of potential solutions for diverse challenges sourced from large companies worldwide. By aligning these solutions with real-world needs, Multipeak ensures their marketability and value.

Adaptation and resilience during COVID-19

The COVID-19 pandemic was a turning point for many businesses, and Multipeak was no exception. Initially a business consultancy, the company focused on technology during the pandemic.

This strategic shift was driven by the realisation that technology adoption was not just a trend but a necessity in the changing world. Henry recounted how his real estate and hospitality background underscored the need for a different approach during the pandemic.

This pivot was not merely about survival but also about building trust with startups. Multipeak's willingness to take equity stakes in startups and provide services in return demonstrated a deep commitment to fostering innovation and supporting young companies in turbulent times.

This approach helped establish strong relationships based on mutual trust and understanding, crucial elements in the startup ecosystem where 90% of ventures typically fail.

Importance of understanding investor preferences

We collect problem statements. We assess the company physically, interview the staff, and management, and focus on problem statements.

One of the critical insights from Henry's discussion was the importance of understanding investor preferences. Many startups waste valuable time and resources approaching investors who lack interest or expertise in their specific areas.

Startups must identify the right investors who align with their vision and industry to enhance their chances of securing funding.

Multipeak plays a pivotal role in this matchmaking process. By leveraging its extensive network and deep industry knowledge, it connects startups with investors who are genuinely interested in its solutions.

This targeted approach increases the likelihood of securing funding and ensures that startups receive strategic support from investors who can contribute to their growth and success.

Market sentiment and funding challenges

Believing in your product is crucial. If you can show it’s disruptive, it’s interesting for investors.

The startup ecosystem has witnessed significant fluctuations in funding availability. Henry highlighted how the market sentiment has improved recently, making funding more accessible to startups. This shift has allowed companies to expand their teams and product offerings, driving growth and innovation.

However, the funding landscape remains challenging. Startups must be prepared for rigorous scrutiny from investors keen to invest in disruptive technologies with high potential. Multipeak's focus on disruptive technology positions its startups advantageously in this competitive landscape.

By developing technologies that address real-world problems and have the potential to disrupt existing markets, Multipeak ensures that its startups are attractive to investors looking for high-impact opportunities.

Scalability and market focus

Singapore startups need to look for a region, like Southeast Asia or even Europe or the US. If you focus only on your local market, investors don’t believe it’s scalable.

A crucial advice for startups in Singapore is to look beyond the local market. Henry pointed out that while the "Made in Singapore" brand carries significant credibility globally, focusing solely on the local market can limit a startup's growth potential. Instead, startups should aim for regional or global expansion.

Successful Singaporean startups often succeed tremendously when they venture into Southeast Asia, Europe, or the US. This broader market focus not only demonstrates scalability to investors but also opens up more significant revenue streams and opportunities for growth.

The Singapore government provides substantial support to startups, but the actual test of a startup's potential lies in its ability to thrive in diverse and competitive markets.

Sustainability and ESG (Environmental, Social, Governance)

Sustainability and ESG are at the heart of Multipeak's philosophy. The company prioritises solutions that support sustainability and the circular economy, sourcing global technology to tackle specific problem statements with innovative, scalable approaches.

Henry highlighted Multipeak's standout initiative: its focus on coral carbon credits. Understanding the crucial role of coral reefs, Multipeak plans to scale coral farming using robotics, automating the process to replenish oceans effectively.

Unlike traditional, donation-driven efforts, Multipeak treats coral farming as a business, encouraging companies to invest in large-scale coral planting in exchange for carbon credits. This model offers a more impactful and sustainable path to environmental conservation.

Practical problem-solving over trendy innovations

A lot of startups develop the wrong product. They may think it’s cool, but it’s the wrong timing.

A key theme in Henry's discussion was the emphasis on practical problem-solving over trendy but impractical innovations. Startups often create impressive technologies that lack real-world applications or market demand.

Muitipeak tackles this by maintaining a database of around 7,000 industry problem statements. This enables startups to develop solutions grounded in actual needs, ensuring their innovations are both practical and marketable.

Hernry shared an example of a biowaste management startup with innovative technology but little impact since biowaste naturally decomposes.

In contrast, pressing issues like plastics, semiconductors, and batteries demand more attention. Multipeak's guidance helps startups focus on high-impact problems, boosting their chances of success and market adoption.

Key takeaways

Drawing from his extensive experience, Maillet shared valuable best practices and advice for budding startup founders. The journey from idea to IPO is fraught with challenges, but several fundamental principles can guide startups towards success.

• Belief and resilience: Founders must believe in their products and be prepared to demonstrate resilience. Running a startup is a marathon, not a sprint. Endurance, patience, and a thick skin are essential qualities for navigating the ups and downs of the entrepreneurial journey.
  
  
• Disruptive technology: Developing disruptive technology is crucial for attracting investors and achieving market success. Startups should focus on innovations that solve significant problems and have the potential to disrupt existing markets.
  
  
• Strategic partnerships: Building strategic partnerships can provide startups with valuable resources, expertise, and market access. MultiPeak's approach of partnering with companies affected by their disruptive technologies exemplifies how strategic alliances can facilitate growth and development.
  
  
• Scalability and market focus: Startups should aim for scalability and not limit themselves to local markets. Expanding into regional or global markets demonstrates growth potential and attracts investors looking for scalable opportunities.
  
  
• Sustainability and ESG: Incorporating sustainability and ESG principles into business models is increasingly important. Startups prioritising environmental and social responsibility are better positioned to attract investment and build long-term value.