SINGAPORE — Investors pushed back against the widespread narrative that the startup ecosystem is suffering from a lack of funding, telling founders at the Latitude59 conference in Singapore that the real scarcity is a lack of fundable concepts.
On a panel exploring cross-border investments between Nordic countries and Asia, investors urged startups to look critically at their products before blaming market conditions for failing to raise money.
"Ideas are always in short supply," said Lassi Noponen, director general of Business Finland. "If the capital doesn't find your great idea, then you should also think about your idea, if it's actually a problem there."
Recalling a conversation with an Indian billionaire fifteen years ago, the speaker highlighted that founders frequently point to a cash squeeze to mask underlying business flaws. People tend to "blame their problems on lack of capital," Noponen said, adding that founders often use this excuse "because it's not a sexy thing to say that I don't have a good idea."
Noponen offered a crucial counterweight, highlighting the structural necessity of public money in early-stage tech development.
"R&D is always underinvested by companies because part of the benefits of R&D spill over to other companies and to the society," Noponen said. "And that's the foundation why governments support R&D."
Operating under the Finnish Ministry of Economic Affairs and Employment, Business Finland functions as a massive state funding apparatus. The agency injects non-dilutive grants and low-interest loans directly into the ecosystem. This ranges from €60,000 early-validation grants for young startups to €1.2 million deep-tech funding packages.
These public investments are designed to shoulder the heavy early risks of scientific and technological research that private VC markets typically avoid. Noponen stressed that the state's primary mandate isn't merely to prop up individual businesses, but to stimulate broader economic momentum.
"They don't do that so much to support the company that gets the grant, but they are okay with the spillover to the economy," Noponen noted. "So in a way, the return is that there are more companies emerging as deal flow to these funds. And that's the main return of public funding into R&D."
Cross-border trust and regional exits
For Nordic and European startups looking to secure Asian capital, the panel stressed the importance of long-term relationship building over quick pitches.
Investors evaluating cross-border opportunities need a clear demonstration of why a company matters to their region, such as plans to expand supply chains in Asia.
"For example, I'm dedicated to Asia," said Queenie Wong of EQT Partners, representing the Asian side of the Nordic investment firm. "In order for me to invest in Nordic companies out of the Asian pockets, I would need to see that there's an obvious tie of that company to Asia."
While addressing structural challenges within the Asian startup ecosystem, the panel highlighted a critical lack of exit liquidity. "Compared to the US, maybe I think compared to Europe as well, I think what Asia lacks, to be honest, is really that M&A landscape," Wong stated, noting that large Asian corporations are more likely to build internally than acquire.
Conversely, corporate structures in Europe approach this differently. Ewrelius Ryde of Scania Ventures noted that while her firm does have an M&A arm, they "separate that completely from the VC fund."
The state's role and the future of small nations
Addressing deep tech and research-intensive startups, the discussion highlighted that private markets alone cannot sustain early-stage scientific development. Because the benefits of research and development "spill over to other companies and to society," state-backed investments remain a necessary foundation, a point closely aligning with the mandate of Business Finland's Lassi Noponen.
Looking forward, the global investors reached a strong consensus on the economic strategy for smaller tech hubs like those in the Nordic region. When asked during a rapid-fire segment whether "small countries should stop doing everything and specialise in two or three sectors," every panellist firmly agreed.
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