
This belief still holds true, but a two-week experience at Google Developers Launchpad accelerator bootcamp made me realise there is much more to it - especially for Thai startups.
SKOOTAR, a winner of dtac accelerate batch 3, was honoured to join the Google bootcamp along with 30 other growth-stage startups and close to a hundred mentors from 8 other emerging markets. Throughout the bootcamp, I realised that product ideas were more or less similar across many parts of the world, whether it be Brazil, Indonesia, India, or Thailand. In essence, we are all trying to address similar fundamental needs.
However, one critical variable that could dictate the success of many startups is its addressable market size. For two startups solving the same user needs, a similar amount of resources is needed:programmers, initial capital, etc. Nonetheless, the startup in a larger addressable market would have greater ease in accessing a larger number of potential customers. In turn, this would translate to the ability to reach scale, break-even, and attract investors at an earlier stage.
Take the example of an Indian startup in the programme. They built an online platform for special event clothes rental. The market could be considered a relatively 'niche' one, and as a result, one would have expected that the startup would have struggled throughout its first few years, in securing a large enough customer base to further grow. However, being 'niche' in India, a country with a population of 1.3 billion (20X the population of Thailand), is a whole different game from being 'niche' in a country with less than 100 million in population. This startup received over 7 million dollars of funds within just a few months after its official launch and with only a few hundred transactions per day.
For Thai startups, this phenomenon represents a challenge. In the digital era where solutions are driven by technology, the market is borderless. Successful startups with a home base in larger markets could easily leverage its existing solutions and expand its footprint to other markets, like Thailand, where customers are facing similar problems and needs.
This elevates the playing field for startups with origins in smaller markets like Thailand, as startups from larger markets - although offering similar solutions, are backed with better ability to attract quality talent, more capital, and as a result, better technology.
So, what should Thai startups do to overcome this challenge? I presume there is no clear-cut answer, but a few lessons learned from the bootcamp can serve as a good start.
#1: "Great team is the most important ingredient"
Google, a company that develops many of the world's greatest products, puts its people as its number one top priority. This is evident in its vast HR organization with over 2,000 employees. For Google, HR is not only about managing employees' payroll or mere administrative tasks, but the company goes beyond. All of Google's HR activities are very structured and supported by science and data. For example, for its hiring process, Google prepares detailed questions and desired answers for the interviewers to assess their candidates across key metrics such as general cognitive ability, role-related knowledge, leadership, and "Googleyness" to make sure they can get the best fit people every time.
#2: "Reinforcement via right culture mix is also key"
Talent could not be retained nor optimised, without the right culture. Google reinforces a performance- oriented culture using OKR (Objective and Key Results) system. They instill data driven product development culture by leveraging "Design Sprint" process. To ensure transparency, weekly global townhalls are held, where questions with the highest votes are answered live by the CEO himself. To encourage feedback, regular employee satisfaction survey results of all teams are also shared company-wide.
#3: "Start from locally defensible niche then adapt fast"
Google started from being a search engine, but it never ceased further developing into other categories such as media (YouTube), mobile OS (Android), internet OS (Chrome) and now self-driving car (Waymo). To avoid being out competed by foreign startups, Thai startups should start from building and perfecting its model specifically for Thailand or SEA so that it is unique and defensible. Then, be ready to adapt fast to other related niches in the country or expand to other geographies.
With a great team, everything will follow. If we can build a capable startup team that is truly committed to solving problems and building best products then it'll carry on, come what may.
Ko Jumbala is co-CEO and co-founder at SKOOTAR.com, Thailand's top platform for same-day motorbike messenger and logistics solutions for SMEs. With background as a management consultant and passion for technology, he aspires to build tech organisations that can improve daily lives of people and businesses in Thailand. Ko holds an MBA from Kellogg School of Management.