Richard Xu' view: the crisis presents an opportunity for those companies to leapfrog many economic activities

Sep 24, 2021 Other

At the beginning of 2020, the COVID-19 pandemic has had an impact that cannot be ignored in the global market. Some challenges, trends and opportunities brought by the epidemic have brought a surprise blow to the global market.

In this regard, HoloBase held an online event on June 28, which discussed with Richard Xu from Grand View Capital(GVC) about new opportunities for venture capital in the Southeast Asian market in the post-epidemic era.

Combined with the challenges during the epidemic, some new trends and opportunities also emerges. 

|  Richard Xu: US Chief Representative of Grand View Capital

In this event, he elaborated on the changes in awareness, trends, and opportunities in the post-pandemic era. All industries have been affected to some extent by the outbreak, of course, the VC industry is no exception. According the data, worldwide VC deals also slowed down. Nevertheless, a number of new trends and opportunities have emerged, such as remote working mode, online education, online healthcare…

In his views, globalization will usher in a new era in the face of the epidemic. In terms of supply chain shifting, for western companies which highly relied on Asian manufactures and suppliers, the breakout of Covid-19 accelerates the returning of manufactures to their home country. As for technology outsourcing, Asia-Pacific accounts for 36% of all ICT-skilled workers in the world, followed by the America with 33% and Europe, the Middle East, and Africa(EMEA) with 31%.

At the beginning of the pandemic, stocks were dumped. Although stock market is slowly recovering, second wave of pandemic may create another gap, which attracts investors to look for more stable long-term investment. Meanwhile, some needs also rise in emerging markets. Youth consumers and mature mobile environment made the new emerging markets more vigorous.

Some main markets like emerging market,United States and China also ushers opportunities in the post-pandemic era. New globalization emphasize new headquarters and new markets, therefore, capital will be spreading out to emerging market and content and media industry with authenticity will be rewarded. Besides this, the outbreak will boost the industry in China to transform to more agile supply chain, improve the fast-forward brand & product and empower offline business to online context.

In a word, the crisis presents an opportunity for those companies to leapfrog many economic activities into the digital world as businesses will be required to run more efficiently after a big reset. Specifically, the healthcare, education, retail, agriculture, and logistics sectors will see a new wave of digitization and local startups and tech companies will be well positioned to participate in the reinvention of these industries. Opportunities and challenges are all coming, companies which want to survival from the pandemic need to transform to more flexible and effective working mode and advance with the times.

|  Preview on the next upcoming event

So what indeed the opportunities are brought by the pandemic? In our next upcoming event on 12 July with the theme of The current situation and changes in venture capital in Southeast Asia after the pandemic, we invited Jonathan Zhong, the Founding Partner of ATM Capital to share his idea with us. He will talk about the new opportunities emerging from the pandemic especially in Southeast Asia. 

If you are interested in the current situation of Chinese investment in Southeast Asia and Chinese VC's predictions and focusing points on the Southeast Asian market, don't forget to sign up for our next event!

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