Scaling a startup in the Asia Pacific (APAC) region presents unique challenges, from navigating fragmented markets to managing complex regulations. However, the region’s vast growth potential makes it an attractive destination for ambitious founders.
Lee McMahon, Co-Founder and Chief Business Officer of Clara shares five practical strategies for APAC founders looking to scale their businesses, drawing from his experience in the competitive Middle East market.
5 Steps APAC Founders Can Take to Drive Growth
1. Keep Your Capital Structure Clean
“Keep your cap table nice and clean,” advises Lee. A streamlined capital structure is crucial in APAC’s diverse markets. Special Purpose Vehicles (SPVs) offer a straightforward solution by consolidating multiple investors into one entity. This simplification allows founders to focus on growth rather than managing complex investor relationships.
“Keep your cap table nice and clean.”
2. Grow Through Strategic Acquisitions
Strategic acquisitions can accelerate your startup’s growth trajectory. As Lee explains, “Part of the acquisition strategy was more about bringing more volume of assets into our technological efficiency model.”
By acquiring competitors or complementary businesses, founders can increase market share and operational efficiency faster than traditional growth methods. Rather than relying solely on organic growth, APAC founders can use SPVs to finance strategic acquisitions that complement their existing operations.
3. Tap Into Government Support
Lee points out that entering new markets, such as Saudi Arabia or other Gulf countries, can be costly for startups. He highlights the importance of utilising available resources: “There are a lot of programs and grants.”
Like their Middle Eastern counterparts, many APAC governments offer valuable support programs for startups. These initiatives can help founders optimise operations and maximise available resources.
4. Simplify Cross-Border Investments
Cross-border expansion becomes complicated when companies face varying APAC regulations. However, SPVs offer an effective way to manage this complexity. Lee explains, “A lot of founders these days are doing rolling fundraising, so they never stop,” underscoring the importance of receiving capital from diverse sources.
By using SPVs, founders can streamline the investment process, making it easier to navigate regulatory challenges and enter new markets with greater ease.
5. Build a Product-First Approach
Lee emphasises the importance of a product-first mentality, stating, “We’re very much focused on product first.” This approach directs capital toward innovative solutions that drive business growth and helps create scalable, sustainable products while optimising resource allocation.
By adopting this strategy, APAC founders can efficiently use resources to develop solutions that meet market needs.
Scale Your Startup with Strategic Planning
Learn more key growth strategies from a Seasoned Founder’s Journey in the Middle East.
Scaling a startup in APAC requires streamlined capital structures, strategic acquisitions, and a product-first approach. As Lee McMahon advises, founders can leverage SPVs to simplify investment management, maximise growth opportunities, and align with government initiatives. To uncover more insights from a seasoned founder’s journey, view the full podcast and learn how these strategies can help you scale your business.
Ready to scale your startup? Discover more valuable growth strategies by exploring podcast episodes with insights from experienced founders and industry experts.
