Arab and foreign investors, as well as major companies in the world, are looking for new projects and start-up companies that offer creative and innovative ideas to invest their money in. There are currently more than 150 million start-up companies in the world, and 50 million new start-up companies are established every year.
This means that on average 137,000 startups are announced every day in the world, yet only 10% of these companies can survive in the long term.
These startups are looking for investors to support and finance them in exchange for a share of the company’s shares and expected future profits. The volume of foreign direct investment in these startups reached $1.3 trillion in 2023, according to the World Investment Report 2024 issued by the United Nations Conference on Trade and Development (UNCTAD).
The importance of foreign investment for startups
Foreign direct investment plays a pivotal role in facilitating the expansion of local start-ups in international markets in several ways, perhaps the most prominent of which, according to a scientific study published by the “MBRA” platform:
- Distribution networks: FDI gives startups access to the existing distribution networks of multinational companies, providing a channel to reach a wider customer base.
- Market knowledge: Foreign investors bring valuable market insights and information, helping startups better understand customer preferences and competition.
- BrandPartnering with well-known foreign companies enhances the credibility and visibility of startups in global markets, leading to increased confidence in their products and increased demand from potential customers.
Asia accounts for the lion’s share of foreign direct investment
Last year, 2023, witnessed a 17% increase in foreign direct investment in Asian countries, while the value of these investments in Europe decreased by 20%, according to a report by the United Nations Conference on Trade and Development (UNCTAD).
Political stability and distance from geopolitical turmoil have helped Asian countries attract more capital. Countries such as Singapore, Indonesia, Malaysia and India are located far from conflict zones and provide stability amid global turmoil, according to Invest ASEAN.
Among the millions of startups in Asia, there are 100 Asian startups that have caught the attention of investors and their checkbooks, and these companies have collectively attracted more than $2 billion in total investment to date, according to Forbes.
In this report, we will present to you the top 10 Asian startups that have attracted millions of dollars from global companies and foreign investors, according to Forbes magazine.
Countries such as India, Indonesia, Malaysia, the Philippines, Japan and China top this list, and many of these companies belong to the advanced technology sector and have new innovations that meet the aspirations of future markets.
- Accacia Company
– Country: India
– Category: Green Technology & Robotics
– Year of establishment: 2022
– CEO: Anu Taleria
India-based Acacia, which has an office in Singapore, has developed a tool to track carbon emissions in the real estate industry. The AI-powered ERP system helps developers and infrastructure providers track carbon emissions across different properties.
In April, the startup raised $6.5 million from a number of investors and companies led by Illuminate Financial, with participation from AC Ventures, as well as other investors such as Brazilian billionaire Eduardo Saverin.
- Agnikul Cosmos
– Country: India
– Category: Space Technology
– Year of establishment: 2017
– CEO: Srinath Ravichandran
The company develops rockets that send spacecraft, satellites and other payloads into space. The company has created its own advanced engine called the Agniban, which means “fire arrow” in Sanskrit.
The company completed its first successful test launch from Sriharikota on India’s southeast coast last May.
The Chennai-based startup was founded by the Indian Institute of Technology in 2017. It has raised a total of $42 million to date, including a $26.7 million funding round last October.
It included new investors such as Celista Capital, Rocketship VC, Artha Select Fund and Artha Venture Fund, in addition to existing investors Mayfield India, B Ventures and Special Invest.
- AI Medical Service
– Country: Japan
– Category: Biotechnology & Healthcare
– Year of establishment: 2017
– CEO: Tomohiro Tada
Headquartered in Tokyo with offices in the United States and Singapore, the company’s biotechnology innovations have enabled doctors to analyze gastrointestinal images taken with endoscopies, and manage the images in the cloud using the company’s diagnostic support services.
Due to its advanced technology, the company has signed research agreements with 100 medical institutions worldwide, and has obtained regulatory approvals in Japan, Singapore and Brazil.
The company has raised $94 million in funding through an initial public offering, as well as some self-funding and government grants. Investors include SoftBank’s Vision Fund II and Globes Capital Partners.
- Airblack
– Country: India
– Category: Education and Employment
– Year of establishment: 2019
– CEO: Vidit Jaiswal
This company offers online beauty and cooking courses that lead to government-accredited certifications.
The company has so far raised over $10 million in funding from investors such as Bloom Ventures, Elevation Capital, and others.
- Aliena Company
– Country: Singapore
– Category: Space Technology
– Year of establishment: 2018
– CEO: Mark Lim Jian Wei
Alina’s world-leading Multi-Stage Ignition Compact (MIC) electric propulsion engine enables small satellites to operate in very low Earth orbits between 250-350 kilometers.
In March, the company raised $5.6 million in a Series A funding round led by Wavemaker Partners to expand its existing jet propulsion test facilities in Singapore and accelerate global deployment and commercialization of its engines.
- Alyve Health
– Country: India
– Category: Biotechnology & Healthcare
– Year of establishment: 2020
– CEO: Shashank Avadhani
Alive Health says it has contracted with 400 Indian companies for healthcare services that include setting up employee health plans. It also offers general health services, with its in-house consultants answering questions about fitness and nutrition.
In June, the company raised $5.5 million from investors led by Acceleror Ventures, which is backed by software billionaire Senapathy Gopalakrishnan, bringing its total funding to nearly $6.5 million to date.
- Applecrumby
– Country: Malaysia
– Category: E-commerce & Retail
– Year of establishment: 2012
– CEO: Shaun Tan
Founded by husband and wife Sean and Jasmine Tan, the company sells baby products, including chlorine-free diapers and wipes, with subscription packages for recurring orders.
The company sells its products through TikTok Shop and Shopee and delivers them to locations across Southeast Asia and other regions.
Last March, it raised $4.2 million from venture capital firm Global 500.
- ArkEdge Space
– Country: Japan
– Category: Space Technology
– Year of establishment: 2018
– CEO: Fukuyo Takayoshi
The company is developing nanosatellites weighing no more than 3 kilograms, operating ground stations, and helping arrange launch services. Its systems can be used in communications, remote sensing, and imaging for disaster management, agriculture, and monitoring greenhouse gas emissions.
With two satellites successfully launched into orbit, the company has raised 2.7 billion yen ($18 million) from several investment firms including Sparks Innovation for the Future and Mitsui Sumitomo Capital Insurance.
Last year, Japan’s Ministry of Economy, Trade and Industry awarded it a grant of up to 3.5 billion yen to develop advanced remote sensing satellites.
- Ati Motors
– Country: India
– Category: Manufacturing & Energy
– Year of establishment: 2018
– CEO: Saurabh Chandra
The company’s three-wheeled robots are used in factories and warehouses. Its Sherpa robots can pull shopping carts and, thanks to the company’s sensors and artificial intelligence software, avoid obstacles.
In 2023, the company raised $10.8 million in Series A funding from a group of investors including Bloom Ventures, MFV Partners, and Thru Ventures.
- Bebest Automotive Electronics
– Country: China
– Category: Manufacturing & Energy
– Year of establishment: 2021
– CEO: Liu Xiaohui
Founded by a team of scientists from China’s Tsinghua University, the Shanghai-based company makes intelligent braking and steering systems for vehicle exoskeletons to respond faster to road conditions.
The company, which says it aims to compete with German manufacturing giant Bosch, has raised more than $50 million in funding from investors including New Capital, Hong Shan and Meridian Capital.
