Ilona Gulchak’s Post

Here’s what leading investors had to say about the future of CEE startups at How To Web 2024! “We need to give people a reason to believe they can build $100 billion companies”—Marius Istrate. “In the US, trying and failing is respected”—Felix Martinez. “Life in Europe is good, but that can sometimes take away from the drive”—Eva Arh. “We need founders to tell better stories”—Bogdan Iordache. Read more in our latest article, covering one of the many panels and sessions during the two-day conference >> https://lnkd.in/d5Hz3KUE

Redefining Growth: The Philippine Startup Ecosystem's Journey Towards Sustainability ♻ In 2023, the Philippine startup ecosystem faced a significant shift. Total fundraising saw a 60% decline, and average deal sizes shrank by a stark 71.5% amidst challenging market conditions and a more cautious investor landscape. Despite these hurdles, our startups showed remarkable resilience, pivoting strategies to navigate the so-called "funding winter." Startups have wisely tightened their belts, focusing on cash conservation, business model refinement, and securing bridge rounds to extend their operational runway. This strategic pivot is not just about survival; it's about building a foundation for sustainable growth. Interestingly, while funding and deal sizes dipped, the number of deals in the Philippines rose by 55% in 2023, setting a new record. This surge is driven by an increase in bridge rounds, government grants, and a keen focus on seed and early-stage investments. While growth-stage deals faced a downturn, the enthusiasm for nurturing innovative, sustainable business ideas has never been higher. This evolving landscape highlights a pivotal shift in investor priorities, with a growing emphasis on startups that promise sustainable growth rather than mere rapid expansion. The message is clear: resilience, adaptability, and sustainable planning are the keys to thriving in the current #ecosystem. Our startup community—founders, enablers, and investors—is rallying around this new paradigm, championing sustainable growth and long-term viability over fleeting spikes in growth. Want to learn more about the Philippine startup ecosystem? #Download our updated Philippine Startup Ecosystem Report here: https://lnkd.in/g42qnw75 #GobiCorePH #GobiPartners #Innovation #VentureCapital #PhilippineStartupWeek #Philippines #StartupEcosystemReport

Thailand is gearing up to be a haven for startups, promising a bright future for innovation. With digital growth and a booming middle class, the potential is immense. Yet, challenges remain. Are we ready to support these trailblazers? #ThailandStartups #InnovationHub #BCGinSouthEastAsia

🚀 Cross-Border Innovation Unleashed! Gobi Partners, a leading Southeast Asian VC firm, has joined forces with Japan-based Cross Capital to redefine the startup landscape. This strategic partnership is set to: 🔗 Facilitate cross-border innovation 🌏 Enhance the flow of Japanese investments into SEA startups 💡 Empower startups with access to unparalleled networks and resources Cross Capital, founded by VC veterans with 40 years of expertise, connects Japanese corporations to ~1,800 startups via its flagship Fund of Funds (FoF). By championing open innovation, this collaboration opens doors for startups to scale, localize, and thrive across borders. This aligns with Gobi's vision under the Crouching Panda, Hidden Tapir framework, fostering seamless synergy between Northeast Asia and ASEAN. With a proven track record of successful exits to Japanese firms—like Hermo (acquired by iStyle) and Workmate (acquired by Persol)—this partnership is poised to drive unparalleled growth in the region's tech ecosystem. 💬 What does this mean for SEA's trillion-dollar startup boom? Let’s discuss! https://loom.ly/m2Iz-U0 #VentureCapital #CrossBorderInnovation #ASEANStartups #JapanInvestments #e27News

Startups in the UK - the second largest economy in Europe - received $255.47B in VC funding between 2013 and 2023. That's more than the other four largest economies in Europe - France, Germany, Spain, and Italy - combined. – https://lnkd.in/gJz57twU

Danske Iværksættere - Danish Entrepreneurs in collaboration with Suomen startup-yhteisö and 8 other organisations produced the Transatlantic Insights Report A peer-to-peer comparison of European and US startups. The graph below is very concerning and should be looked at closely by the next MEPs elected to the EU parliament. Regulation: A major concern for EU startups, but less so for their US counterparts. Macroeconomic Conditions: A significant challenge for US startups compared to EU startups. However, the macroeconomic problems will hit all startups, but EU-specific regulations will hurt mostly startups born in the EU. https://lnkd.in/dx8d3RYx

SINGLE PAN-EUROPEAN STARTUP ENTITY International startup investors are shunning European companies over complex legal bureaucracy > The main problem in Europe: that, in practice, all of the different startup ecosystems are siloed.  > “No Slovenian investor will touch a Portuguese entity because of tax and legal implications, it’s an administrative headache. > Compare this to the US, where a Chicago startup can easily get investors from both the East and West coasts.  > This won't happen in Europe. So it's a completely different level of liquidity, with small countries especially locked in.” This unprecedented EU initiative calls for the creation of an ‘EU Inc’ entity under the 28th regime (EU rules offering an alternative to national laws for innovative startups). https://lnkd.in/eVkKgBhW

In my view (I am today a US citizen but I immigrated from Belgium decades ago and I have lived in silicon valley for more than 3 decades, during which I built several companies, including 2 IPOs), there should be a VERY SIMPLE way to stimulate BOTH the entrepreneurs and the investors in Europe. The EU should pass a EU-wide tax legislation that exempts capital gain taxes for shares of small businesses (less than $50M in assets) held for at least five years. Here is the explanation of the QSBS program in the USA (Qualified Small Business Stock): https://lnkd.in/g-tH4zuQ Today, there is plenty of capital and plenty of talent in the world, but capital and talent move where there is a greater efficiency not only with respect to execution of business plans but also in terms of the flow of risk capital and the reward incentives (after tax) for those taking risks. This can range from restaurant owners to high tech startups. Small businesses can create more jobs and drive higher productivity than any other mechanism. Just my 2 cents...

Thanks to Justė Pačkauskaitė, Partner at Civitta, for delivering an insightful and engaging lecture focusing on the dynamics of startups in the Baltic States, their ecosystems, and broader economic implications. While Lithuania still has considerable room for improvement in this area, it is impressive that the number of startups in the country increased by 40% between 2016 and 2021, representing the highest growth rate among the Baltic States. #economics #startup #KTU #Civitta

A win for startups in the European Union but also this will serve as a great learning opportunity in terms of implementation, rules and the benefits of the decisions made for other markets such as those in Africa and especially in Uganda. 🥳💪💯