U.S.-based VC firm 500 Startups is launching a new accelerator program
in Southeast Asia that is designed to help companies in the region that have
raised money take their business to the next level.
The firm,
which recently topped up its ‘500 Durians’ fund for Southeast Asia with an additional $5 million, has
partnered with MaGIC — the
startup and entrepreneurship program run by the Malaysian government — to
launch the program in Kuala Lumpur from August. Each ‘Distro Dojo’
batch will run for 10 weeks and take in between 10 and 20 companies from
across ASEAN who work with mentors and the 500 Startups network to scale their
userbase, revenue, and other aspects of their business.
The program is
based on 500 Startups’ existing support network for its portfolio companies,
which dishes out this kind of consultancy on a bespoke basis. Now it’s being
formalized and made open to all companies in Southeast Asia, not just
those that 500 Startups has invested in. The U.S. VC firm actually launched Distro Dojo in London last
month, but the concept began in Southeast Asia with a pilot run
last year in Malaysia (with MaGIC) with four companies that raised over $7
million collectively.
“What do you
do after you raise money? You need to spend it and spend it well,” Khailee Ng,
500 Startups’ Southeast Asia-based managing partner told TechCrunch in an
interview. “This program is about helping startups work on specific growth
goals. Not all startups have world-class customer acquisition chops.”
Targeting 100 Startups
Southeast
Asia’s Distro Dojo is expected to kick off in August. 500 Startups and
MaGIC have committed to a three year partnership, which Ng expects will see 100
companies graduate the program. The terms will see 500 Startups invest $50,000
in each company — half of which goes to program fees, while the rest is budget
— taking whatever equity that figure buys at the startup’s most recent
fundraising. MaGIC is providing its 100 square foot building for the
program, and covering “some administration costs.”
Ng said he
believes that Distro Dojo is an important area that is particularly necessary
in emerging markets like Southeast Asia.
“It’s a big
problem that’s even bigger in emerging markets where you can’t just go to the
pub to hangout with your friendly growth hacker next door. This this
is very different [to other programs].
“Companies get
prepped on unique growth problems and we set objectives for the end of the 10
weeks. Experts [brought into the program] work in the company… it isn’t like
sitting in a class just listening. We think it’s the kind of thing founders can
relate to,” Ng added.
The move makes
a lot of sense for 500 Startups as it gives its portfolio companies a stronger
shot at success, while increasing the firm’s network and relationships with
successful startups and founders — the latter of whom may start new projects in
the future and turn to 500 Startups for help.
Throw In A Little
MaGIC
It’s also an
interesting move from MaGIC, the government-backed program created to foster
the spirit of entrepreneurship and startups in Malaysia. MaGIC — which stands
for Malaysian Global Innovation & Creativity Center — just
celebrated its first birthday — its report card can be found here — but it isn’t your average government
agency.
First off, it
is run by a founder. Cheryl Yeoh, a Malaysian who moved to the U.S., became an
entrepreneur and sold her
startup (Reclipit,
which was a 500 Startups company) to Wallmart Labs in 2013. Yeoh, who
won a scholarship to study at Cornell, upped sticks and switched San
Francisco for Kuala Lumpur last June to head up MaGIC.
Her and the organization’s role is to
turn Malaysia into a startup hub for Southeast Asia. MaGIC’s own accelerator
program — MAP — kicks off
at the end of the month with its inaugural batch, and Yeoh told TechCrunch that
hosting Distro Dojo will prove beneficial for MaGIC and Malaysia.
“We’re trying
to position Malaysia as a launchpad for ASEAN startups — a core focus is
building this ASEAN community,” she said in an interview.
Ng, who is
also Malaysian, explained that MaGIC and Yeoh were key reasons for picking
Kuala Lumpur as the base for Distro Dojo, as opposed to a more obvious place
like Singapore.
He added that
500 Statups wants “a Distro Dojo on every continent” worldwide, but
launches will depend on finding the right local partners.
Companies can apply here to be a part of the first Distro Dojo
in Southeast Asia, which kicks off in August.
Citation from TechCrunch : http://goo.gl/gBIyZv
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