Over the past decade, Asia has cemented its position not merely as the world’s manufacturing base, but as a vibrant hub for global corporations, high-growth startups, and dynamic capital flows. With a combination of favourable demographics, expanding consumer markets, and digital innovation, the continent has become an increasingly attractive destination for entrepreneurs, investors, and multinational firms alike.

From 2017 to 2023, private equity and venture capital assets under management (AUM) in Asia surged by an astonishing 130%, significantly outpacing growth in Western markets. This upswing has transformed the region into a breeding ground for innovative startups and unicorns, while simultaneously attracting the attention of global financial players.

As a result, the combination of local entrepreneurial talent and international capital has produced a powerful ecosystem that is reshaping the global business map.

Global corporations move East

The presence of global companies in Asia is no longer limited to manufacturing or back-office operations. Increasingly, multinational firms are locating strategic decision-making centres, R&D hubs, and innovation labs across Asian capitals. Tech giants such as Google, Microsoft, and Amazon have all expanded their operations in countries like India, Singapore, and South Korea, capitalising on access to skilled talent and growing digital markets.

At the same time, Asia is home to its own formidable cohort of global firms, many of which have established themselves as household names beyond their home markets. Corporations such as Samsung, Toyota, Alibaba, and Tata have demonstrated Asia’s capacity not just to follow, but to lead in sectors ranging from consumer electronics and automotive manufacturing to e-commerce and telecommunications.

What sets these Asian giants apart is their deep integration into both domestic and wider international markets. Their supply chains span continents, their customers cross cultural lines, and their innovation pipelines rival and often surpass those of their Western peers. This cross-border footprint has helped draw capital and talent into the region, further energising its startup environment.

Asia’s startup ecosystem

With this strong corporate infrastructure as a backdrop, Asia’s startup scene has exploded. Cities such as Bengaluru in India, Jakarta in Indonesia, Ho Chi Minh City in Vietnam, and Shenzhen in China have become synonymous with tech innovation and disruptive entrepreneurship. Because of this, Asia now accounts for a significant proportion of the world’s unicorns - privately held companies valued at over $1bn - and new ventures continue to emerge at a pace not seen elsewhere.

The rise of mobile internet, coupled with youthful populations and high urbanisation rates, has created ideal conditions for tech adoption and experimentation. Startups in Asia are not merely replicating Western models; many are innovating to meet the specific demands of their markets, such as super apps, QR-based payments, social commerce, and AI-driven language tools tailored to non-English speakers.

In India, startups like Byju’s (edtech), Zomato (foodtech), and Razorpay (fintech) have scaled nationally and internationally within a few years. In Indonesia, Gojek began as a ride-hailing platform and evolved into a multi-service ecosystem. China, meanwhile, has produced global leaders such as ByteDance and Shein - companies that have redefined global trends from content to fashion.

These success stories are underpinned by a powerful combination of homegrown talent and increasingly sophisticated funding mechanisms.

Surge in capital flows and investment

To this end, with private equity and venture capital AUM in Asia increasing so rapidly - 130% as mentioned previously - this surge is driving global investors to seek exposure to Asia’s high-growth markets and local investment ecosystems.

Traditionally dominated by Western investment houses, the region has seen a rapid rise in homegrown PE and VC firms. In China, Hillhouse Capital and Sequoia China have played pivotal roles in funding tech and healthcare ventures. India has seen the rise of funds such as Kalaari Capital and Blume Ventures, while Southeast Asia has attracted major international players including SoftBank’s Vision Fund and Tiger Global, alongside regional funds such as East Ventures and Insignia Ventures.

Much of this capital is not only directed at late-stage funding rounds but also at seed and Series A investments, supporting innovation from the ground up. Crucially, Asia’s funding landscape is no longer concentrated in just one or two cities. While Beijing, Shanghai, and Bengaluru remain dominant, the likes of Kuala Lumpur, Hanoi, and Manila are also emerging as alternative innovation centres, reflecting the broader geographic diversification of investment opportunities.

This growth in funding has resulted in a significant improvement in startup quality, scalability, and global ambition. Startups are increasingly able to attract top talent, develop world-class products, and enter international markets with competitive offerings.

Outpacing the West

While Western economies, notably the United States and parts of Europe, still play a central role in global finance and innovation, Asia’s trajectory has been markedly steeper. The 130% increase in private equity and venture capital assets under management in Asia during the six-year period from 2017 to 2023 far outpaces the growth rate in the West, where maturing markets, regulatory complexity, and economic stagnation in certain sectors have slowed the pace of investment.

Moreover, Asian governments have been quick to capitalise on this momentum. Policy frameworks across Singapore, South Korea, and India have actively encouraged innovation through tax incentives, startup visas, and funding schemes. Regulatory sandboxes in fintech and healthtech have allowed entrepreneurs to pilot new solutions with minimal red tape - something still difficult in many Western jurisdictions.

The future is Asia

Asia, for all these reasons, has become far more than a manufacturing powerhouse or outsourcing destination. It is now a key driver of global business, defined by ambitious startups, deepening capital markets, and corporate giants with international influence.

As the continent continues to attract talent, investment, and innovation, it is poised to define the next chapter of global enterprise. With an increasingly confident entrepreneurial class and the capital to support it, the region is no longer catching up - it is setting the pace.