Startups looking to expand into Asia–Pacific (APAC) markets are drawn to the region’s opportunities, growth potential and its current geopolitical stability. But breaking into the East takes more than ambition. It demands careful planning, navigation of complex regulatory landscapes and a deep understanding of local customer needs.
In our latest Sifted Talks, our panel unpacks the challenges and key considerations of taking your startup East.
Our panellists:
- Tom Miller, manager and UK government consultant at Intralink, an international business development consultancy.
- Yasuhiro Saiuto, head of innovation and investment at Yamato Holdings, a Japan-based delivery, logistics and transportation business
- Oona Jinga, cofounder and chief commercial officer at Dexory, a data-driven robotics company.
1/ Position your startup on strong foundations first
Wat position do you think a startup needs to be in before it considers moving East?
Jinga said there’s no one-size-fits-all answer — it depends on the sector, the product and whether the local market is large and diverse enough to support growth. Generally, once a startup reaches product-market fit, it can start exploring opportunities abroad, she said.
Build a strong team that can support operations on the ground. While software startups might manage with remote teams — if they can handle the time zones — physical products require travel.It’s all about team and product maturity, she added.
There is a key difference when navigating expectations across markets: the service-level agreement. Startups, Jinga said, should be upfront about what they can deliver.
“I suggest being as transparent as possible — don’t sugarcoat it or overcommit and then find you can’t deliver. Global companies, they get it. They also operate across markets too, so they understand.” — Oona Jinga, Dexory
2/ Target the region that is “just right”
With startup hubs popping up all across the APAC, it can be difficult to know what country will be the most hospitable to your company.
Miller said that while all APAC markets are worth considering, it depends on the startup’s circumstances. He stressed that although it’s tempting to view Asia as a single opportunity, each country presents its own unique advantages.
Japan, for instance, has a rapidly shrinking workforce, making AI and robotics vital for logistics. It’s also facing a significant shortage of software engineers — creating opportunities for companies that can help digitise products. Korea, one of the most digitally advanced nations, offers potential tech startups thanks to its heavy reliance on manufacturing and exports. Taiwan, he added, can serve as a useful entry point into the region.
Southeast Asia, in its entirety, is a region of “massive opportunity”, Miller said, with a digital economy worth $240bn today and projected to grow to $800bn within eight years.
“Everywhere in Asia is worth considering if you’re a startup.” — Tom Miller, Intralink
3/ Japan is open — just do your homework
When it comes to Japan, there’s a preconception that there are SaaS regulations startups should be aware of.
But Saiuto said he wasn’t aware of any regulatory barriers specifically related to SaaS. While some regulations exist, they don’t pose significant obstacles. Many Japanese companies already offer or use SaaS platforms — his own company, for example, uses 50 to 60. In his view, Japan is a relatively easy market for SaaS businesses to enter.
“There are well-known organisations in Japan that offer detailed information on regulations, business practices and culture — helping you understand how to operate within the Japanese business environment. I’d recommend working with a company like that, especially if you’re involved in trading or looking to enter.” — Yasuhiro Saiuto, Yamato Holdings
4/ Be aware that tariffs are opening up opportunities
While the new US tariffs are significant, it’s still too early to draw firm conclusions, Miller said. But there have been signals that some US tech firms are now unsure how to structure their expansion plans into Asia-Pacific.
“It’s becoming clear that UK and European companies with global ambitions may find themselves in a stronger position because of tariffs,” he said. “With Asia potentially shifting away from US suppliers, there’s a growing opportunity for firms from the UK and Europe. While the tariffs may seem daunting, they could in fact prompt companies to turn their attention Eastwards — towards what now looks like a more stable and receptive market.”
Jinga added that tariffs are already affecting customer behaviour. Dexory launched in the US about a year ago and saw rapid growth, with clients keen to move quickly. But since the tariff announcements, there’s been a noticeable slowdown.
“There’s going to be new collaborations set between European markets, UK markets and cities, which maybe weren’t there before, and I can see a lot more communication potentially opening.” — Jinga
5/ Think long and hard about your hiring needs
There’s a common misconception for companies expanding into a new region: it always requires a full local setup — an office, team, legal entity etc. — right from the start. Instead success depends on timing, Jinga said. You need to know when to introduce local resources and make sure there’s already some traction to build on before making that investment.
At Dexory, the team supported its US customer base remotely from Europe before setting up a physical presence. Her key advice: be scrappy and intentional — and don’t throw everything at a new market assuming it will work.
“Get your boots on the ground first, build a little bit of traction and only then start investing in property.” — Jinga
6/ Take advice where you can get it
The panel concluded with advice for startups thinking of expanding into APAC.
Jinga reflected on how different markets operate at different speeds. Her main takeaway? Don’t treat every market the same. “From East to West, the pace, expectations and style of doing business differ from place to place — so do your forecasts and timelines too.”
As for what successful companies have in common? “Patience,” said Miller. “Especially in markets like Japan, where sales cycles can be six to 12 times longer than in Europe or the US.” The companies that thrive, he said, are those that don’t expect overnight results.
When asked about the key lesson for European startups looking to expand into APAC, Saiuto emphasised the importance of understanding time differences and cultural differences.
“Business culture means understanding how to approach things and how to adapt them for use in the location. The key is identifying these differences and understanding how to adjust accordingly.” — Saiuto
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