When promoting their startups, many venture capital firms tend to hyper-focus on the success of a few startups. Perhaps they may have backed a unicorn in its earliest stages, for example, and now reference this startup at every turn.
While celebrating key investments is natural, this begs the question: What about the rest of the portfolio? Instead of taking this approach that casts only a handful of startups into the limelight, we take a two-pronged approach at Accelerating Asia: We indeed highlight the individual stories of different startups when appropriate. Even more importantly: We share our key numbers as a portfolio. That way, we make it clear that our investment success does not rest on one or two anomalies, but on the vast majority of our seven cohorts.
With that said, we would like to emphasise some key figures and why they matter.
US$284,000 average monthly revenue for the portfolio - In attaining this MR, their valuation on an annual basis has also grown by 2.39 times. While this MR is still relatively small when compared to much larger enterprises, they point to a crucial fact: Our early stage startups are revenue-generating from day one, built as they are on sustainable business models.
In other words, they are not speculative startups, struggling to develop a sound business around leading-edge technologies. They have existing customers. They have existing clients. Their challenge is not finding product-market fit, but on scaling a business that has already been proven in its earliest days. In a startup environment often banking on hype, startups that have strong business fundamentals, such as unit economics, will win the day.
US$58 million raised by portfolio of sixty startups to date - Particularly impressive are our startups that have raised recently, including our most recent cohort, which has collectively fundraised US$5.2 million before joining our accelerator, and alumni like Shuttle, which closed a US$1.5 million round in December 2022.
These numbers are particularly impressive because they buck the recent downturn. According to Crunchbase, global venture funding in 2022 was down 35% from the previous year, going from US$681 billion to US$445 billion. Venture capitalists, in short, are keeping their capital for deployment locked tighter than usual. The startups that have raised during this downturn are those that will thrive in any economic climate. They have a gritty founding team, a sound business model, and the kind of traction that can see them ascend to market leadership in their space.
Every startup addresses 1 sustainable development or more - Each and every startup addresses at least one sustainable development goal (SDGs) of the United Nations, with many addressing more. As an example, Shuttle addresses SDG 11, providing a safe, efficient, and convenient transport solution to advance sustainable cities and communities.
This figure may seem out of place in a fact sheet emphasizing the business success of our portfolio startups, but it has relevance. As startups grow, one of their biggest constraints is talent: they can only grow as they are able to find the right talent.
While getting the right people on the bus is always difficult, it is made easier by this alignment toward social impact. Up-and-coming talent, after all, cares about making a difference. This is not just an assumption, either. In one study, 76% of millennials would consider an organization’s social impact before deciding where to work, with 75% even willing to take a pay cut to work for a socially responsible organization. Our startups, in short, will be able to attract talent on account of not only their fast growth, but social orientation.
40% women-led startups across cohorts - Each of these startups has at least one female co-founder. This figure is noticeably better than the global average. According to Statista, the share of women-led startups globally is only 20%.
While supporting more women-led startups is important on its own - it is the right thing to do, after all - it is not only a moral initiative. Funding more women-led startups is also a strategic imperative. Research has shown that diversity, particularly in leadership, leads to more competitive enterprises. Backing women-led startups is tantamount to finding the founders that have the fresh perspective needed to take on the world’s greatest challenges.
The numbers speak for themselves: Our women-led startups have now raised a total of US$17.7 million, showcasing their ability to not only start, but grow their respective businesses.
Accelerating Asia invests in startups with scalable technology solutions and revenue generating business models that combine purpose with profit.
In making an investment decision, investors must rely on their own examination of startups and the terms of the investment including the merits and risks involved. Prospective investors should not construe this content as legal, tax, investment, financial or accounting advice.