As the Asian startup ecosystem continues to grow in popularity among Western investors, White Star Capital, a globally based venture capital firm, has set up a new office in Hong Kong to tap into the region’s budding entrepreneurs and help its portfolio companies expand into Asia.
A Brief History of White Star Capital
Founded by Eric Martineau-Fortin and Jean-Francois Marcoux, White Star has been investing in early-stage companies across multiple continents for over a decade. With eight partners spread across seven cities, the firm’s portfolio spans from New York-based healthy meal startup Freshly to rewards app Dropout of Toronto, on-demand photo platform Meero from Paris, and dog food startup Butternut Box in London.
Why Asia?
Martineau-Fortin explained that White Star began looking eastward in 2017, initially excluding China due to its crowded market and high investment round sizes. However, the investor believed that cultural differences between Asian and Western consumer behavior require different regional strategies. While certain Asian companies specialize in areas like artificial intelligence, fintech, enterprise software, and micromobility, others such as e-commerce businesses remain distinct in Asia.
Fabulously Interesting Ecosystems Outside of Hong Kong and China
"We’ve been looking at other regions that are often forgotten by North American and European-based investors," said Martineau-Fortin. "Japan, Korea, Singapore, and Taipei have advanced ecosystems with great schools, engineers, and access to capital, but they struggle to connect and sell their products, services, and technologies to other places beyond the U.S. West Coast."
Building Connections in Japan and South Korea
White Star started building connections with big corporations and investors in Japan and South Korea, which led to the firm’s decision to establish a presence in Hong Kong.
Why Hong Kong?
"Hong Kong is a key hub for Asian entrepreneurship," said Martineau-Fortin. "It provides easy access to China, as well as other parts of Asia, making it an ideal location for our new office."
The Importance of International Expansion
White Star Capital’s expansion into Hong Kong highlights the growing trend of international investment in the Asian startup ecosystem.
Rita Liao, reporter at TechCrunch, notes that "the Asian market is becoming increasingly important for startups looking to expand globally. With its unique cultural and economic landscape, Asia offers a vast pool of talented entrepreneurs and innovative companies."
Conclusion
White Star Capital’s expansion into Hong Kong marks an exciting development in the venture capital industry. As the Asian startup ecosystem continues to grow, it will be interesting to see how other firms follow suit.
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