Can Singapore produce our own YouTube?
We hear the success stories of YouTube and HardwareZone recently in the mainstream media. It also raises the debate on whether Singaporeans are capable of creating our own YouTube. Our resident contributor, Der Shing will examine three key pertinent features that are required for building a successful, innovative and sustainable company like YouTube.
Contributed by Lim Der Shing
I have been reading with interest about the recent debate in Singapore about whether we will ever produce our own YouTube type of company. Here is my take of the issue. I will confine my discussion to just dotcom type of companies since that is the area I believe I am qualified to comment on.
To be brief, I believe it is difficult but not impossible for a local startup to duplicate what YouTube has done. That is to say, gather tremendous momentum over a relatively short few years and sell out to a larger firm for a world class payout. That means companies like my own - JobsFactory, Hardwarezone, Shareinvestor are all out of our league. 7.1M give or take 5M is not a world class, attention grabbing payout.
Here are some factors I believe are most important. Many have been debated before.
1) Size of market and relevance of local content.
Sad to say, this is a very real problem. Singapore market is way too small and SE Asia is too non-homogenous for effective economies of scale, even online. The way I see it, this is the major obstacle for any wannabe YouTube based in Singapore. Even the big names that succeed in USA find it tough to penetrate a non-english market easily even with cash and brand. Ebay failed in Japan, Google is losing to Baidu in China etc. Even between USA and Europe, there is difficulty.
So I believe for a firm to succeed in Singapore, the concept has to be deceptively simple. Ala google style such that is does not require too much localization across the regions and more importantly, it has to be built for the big markets like USA or China. And you will probably need to start with one or the other since language and styles are so different. Chinese sites are messy with loads of flashing banners which US visitors hate.
A good local example is wholivesnearyou.com. I think it is a wonderful local site with great traffic. I estimate they are doing 5-10M page views per month which is very decent for a local site. They are very web 2.0 and very community led. However, it looks too local to me and obviously is focusing on local market.
2) Lack of vision or rather a different vision for local startups
Most entrepreneurs in Singapore do not have a vision to be a YouTube. I think our vision is to grow a good business, impact people in a good way and make good money. It is not to change the entire world. Again, I think most people in the world are like that. Americans, China PRCs are different, by default of their market size and population, doing well in their market, means conquering half the world already. Frankly, I feel there is nothing wrong with being happy and contented with what we have.
One other observation I have is that many who do have world beating dreams are usually very very young startups who seriously have not done anything significant with their company. Once their company has some success, I think the environment conspires to reduce the scope of their dreams.
We have exceptions of course, Ron Sim, Sim Wong Hoo, Wong Peng Kin are good cases to learn from.
3) Lack of access to good quality funds.
Even if a firm overcomes the above two and has a great product or service which is global in outlook focusing on one of the major markets that has scale. And the firm has a strong founding team with brains, strategic prowess and management depth, they will still need money to make it all work. Now, frankly if a company has such traction in a major overseas market, then I believe they will get funding from valley investors rather than local ones.
The above 3 factors to me are the most pertinant in the discussion. There are of course others I am sure. So does that mean we have no hope? On the contrary I believe we do have hope, it is just that we are against a gradient. So if any company does succeed, I truly applaud them.
Some examples which I think can have hope? The characteristics I venture to guess will be as follows :
- Built with a larger market in mind. Either China or USA. But business can be based in Singapore for development, taxation, IP etc purposes.
- Web 2.0 community led concept. Spread like wildfire across the targeted market. May not even be known in Singapore. Probably focused on young. Esp since young are slightly more homogenous across the world thanks to cross cultural influences.
- Simple software and at least American standard designs and branding. Many local sites (mine included) are not up to standard still. We have basic grammatical errors, branding not looked into etc.
- World class credentials from management team. Sorry guys, but I do not think a couple of fresh graduates will make it unless they are from Stanford, MIT or harvard, or maybe IIT, Bei Da, Oxbridge. Pedigree attracts pedigree. It’s a fact. There are exceptions of course, but I am taking an educated projection here.
- Funding from similarly well known firms. Perkin, Sequoia etc.
Comments?
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19 Comments, Comment or Ping
justinlee
my latest management mantra in light of hwz selling low is:
“you don’t really need to start a company in the valley, but if you need to grow you company, move it to the valley.”
the reason is, with globalization you can really start anywhere as long as you have a good idea. instead in the initial stages of your company, it’s better not to start in the valley because your burn rate can be lower as you concentrate on R&D efforts in a lower cost region with only your core group of founders as well as maybe some outsourced tech. also the valley has so many conferences and networking event that it can be very distracting at the R&D stage.
however, when it’s time to grow and really market and create buzz, it’s time to shift to the valley. only in that place can you find world class VCs, world class advisors, super talented and competitive people that gets it that you can hire on stock options, landlords who will rent to you on equity, lawyers who can work for you on equity, venture leasing companies that can lend to you on warrants and of course a critical mass of reporters covering the beat on silicon valley and most importantly, the critical mass of the top bloggers as a large population of creative people in california who are willing to try new things out, spare their time to help you beta test and be vocal enough tell you about what’s wrong with your startup…
yes that’s a long comment.. but silicon valley’s really back. definitely it’s not possible to achieve a youtube within singapore, but to give birth to one here, it is possible.
let’s set out sights higher and be more ambitious enough to conquer the world. that’s true entrepreneurship i guess. and lastly, just think about how MM Lee managed to see opportunity in this place in 1960s and turned it into what it is today by staying the course… let’s believe in ourselfs more :)
Oct 23rd, 2006
claris_tan
Perhaps Justin is right. That culture that spurs innovation and exploration is implanted into Silicon Valley. It might take a long time for Singapore to reached that kind of stage, if it ever can reach there. It seem to me more and more people in Singapore are more worry about their rice bowl nowsaday than to live their dream.
To make Singapore a more prominient “red dot”, we need ppl that want to change the world more than business that will generate immense profit.
Why is it that innovation and creativity seem to come out in Silicon Valley ?? From YouTube history, it is notable that these ppl do it to solve their needs first, then other ppl’s needs. In the course of doing so, they did not have any formal business plan to reap profit, their initial is to solve solution and do it free. Perhaps it is the act of giving rather that taking that allows them to innovate better than competitors who still figuring out how to make money from similar services.
Ultimately, it is the passion rather than business that drive innovation, and I think the reason that Google could not beat YouTube in video service is most likely that YouTube is developed by passionate ppl rather than by “employees living by high paycheck”.
It is definitely wise that YouTube remain independent from Google. Most companies that acquired by bigger and established company tend to lose sense of direction and fire in the belly.
Oct 23rd, 2006
Farooq
“Sorry guys, but I do not think a couple of fresh graduates will make it unless they are from stanford, MIT or harvard, or maybe IIT, Bei Da , Ox-bridge. Pedigree attracts pedigree. ”
sorry man, statistically, guys from such “pedigrees” are no more likely to develop the next “youtube” than guys who haven’t been to uni. in the first place…
ya, you get lots of great exposure etc etc…but let’s not pin the hopes of web startups in singapore on high quality education only…
the way i see it, the main factor that comes to mind is:
risk-aversion…extreme fear of failure (rem. what Google’s Brin says: if we haven’t failed at smth, we haven’t tried hard enough)…
get over it, and you’re halfway there…
Oct 27th, 2006
claris_tan
Farooq ,
in the end, all these of risk-aversion…extreme fear of failure is mainly because of retaining rice bowl and ensuring that constant flow of $$$ to pay for home mortage.
Oct 27th, 2006
Farooq
:) well then entrepreneurship is not the answer for everyone, right? besides, singapore’s main push towards ent. is based on the taiwanese model…same concerns there (although the population is 5x that of singapore)…
i believe the main question is whether or not “youtube”-like companies can be created in singapore…again, statistically it’s possible (better odds with an increase in the number of companies that incorporate here)…although i can’t remember the last time i read about a “hardwarezone”-level or higher startup being setup here…
btw, love the job u guys are doing for the ppl…
Oct 28th, 2006
Ken
My opinion is stick with US as the target market unless you or someone in the team really know China. China is a much more different market than most can imagine.
Based in Singapore and targeting China is quite far-fetched.
Oct 30th, 2006
wonderdoggy
Wow! good to see that the topic has generated quite a lot of debate. Got 2 points to make.
1)About the ivy league equivalents being more likely to make it. I was making a limited point. I was venturing to guess and see IF there is a you-tube out of Singapore, what the profile would be like. And notice I said only fresh graduate teams. I still stand by pedigree counts in the example I was using.
2) Actually I do not think based in Spore, targeting china is any more far fetched than based in Singapore targeting USA. There are firms who have done it. Buzzcity, SPH Zaobao.com are good examples of decent successes in China market and with strategy and key management based in Singapore.
dershing
Oct 30th, 2006
mingyou
Responding to Justin’s comments.
You’re defintely right when it comes to setting your sights high and really dreaming. Its only through dreaming and being committed to making that dream a reality that sets the creators apart from the mere day-dreamers.
But its also a matter of culture I feel, and I suspect that you may feel the same. This is my criticism. Singaporeans are often content to talk in forums and on blog comments (me included…!) and dream dream dream. But we never do, engage or decide to believe in a cause that though small may one day become truly big and change the world.
And that lack of a “seeing and respecting” possibilities cullure is precisely what kills the entrepeneurial drive here.
Just like you said… Justin, in order for entrepeneurs and new products to thrive, we need “most importantly, the critical mass of the top bloggers as a large population of creative people in california who are willing to try new things out, spare their time to help you beta test and be vocal enough tell you about what’s wrong with your startup…”
Oct 30th, 2006
Royston
Great article and comments. However, I’m not convinced that a Singaporean company with a great Web idea like YouTube would be able to grow it here and move it to the valley like Justin said:
“you don’t really need to start a company in the valley, but if you need to grow your company, move it to the valley.â€
Putting the argument of Sg being a small market aside (its a very relevant point btw), we still have to consider the fact that our population are relatively late adopters of web technology.
This point could be debatable, cos pple might start comparing sg with neighbouring countries like msia, vietnam and whatnots. But hey, comparing ourselves with equally developed economies, face it..how many of your friends are exploiting the full powers of the latest advancements in web2.0?(YouTube’s not counted, its an established old daddy considering its already 1 year old). I feel this could probably be due to the following:
1) There aren’t enough technology enthusiasts (like us =P) to support a new web company, to help spread word about them, or to put it in cliched terms, to help them cross the chasm.
2) Our population is still mostly comprised of followers. Only when other markets have started adopting the technology, would we consider adopting them. Its the case even for artistes here. They would have to make a name for themselves abroad before locals would be convinced of their talents. This is a problem a local web startup will have to face.
Till the day that the above problems are solved, I feel that we will never see a web company like YouTube being grown in our spartan garden.
Nov 2nd, 2006
Atok
Just Do it..
Fix it along the way… thicken your skin… market like crazy… Get up when you fall… Try again… if you don’t stop… you will get your big hit sooner or later.
Nov 3rd, 2006
Bill Ang
Nothing is impossible. All you need is a little imagination. That is what is required to get things going.
Nov 4th, 2006
Daniel
Imagination ? Singapore’s version of Youtube: SingTube
Nov 4th, 2006
chong3
Money flow to where the opportunities are. The top investing dollars and attention of the world today for the dotcom businesses focus on the web 2.0. Youtube success while hundred of others burning the same million of dollars every month would fail. The better odd of creating a dotcom business that could move the world is in the commonly unnoticed marketplace idea.
There are greater opportunities of success in countries other than China and US due to less competitiveness and the ongoing globalization, and a virgin land to grow company the way as skype in Estonia.
Singapore has the ready pool of intelligent people either Singaporean or foreigner the technology mastered is sufficient to form the foundation of creating company like youtube but lack of the steering hand. If such steering hand with the marketplace idea that could move the world do exist, it could not create company like youtube due the Ignorance Of Marketplace Idea By The Decision Makers. The discision makers in the government and VCs could not see the opportunity beyond the cloud. They are the most intelligent people who think and act practically and logically following the growth path that have been proven and taken in the dotcom business.
I believe there are such steering hand with the desire exist in Singapore and if with a few million dolloars Singapore is a better place than SV to grow such a company lavaraging and providing opportunity for the local telants to excel and breakthrougth. Without the few million dollars the steering hand may still take 10 years Path To Top Dotcom.
Nov 4th, 2006
vic
Singapore’s version of YouTube will be called STube-it =D
Nov 14th, 2006
HL
chong03’s right, the decision makers themselves are too followers of foreign country’s success in the case of YouTube.
Why are we talking about making a Singapore YouTube, and not a brandnew SG-made idea?
The decision makers know they want a good dot-com and seeing the success of others make them want to follow instead of creating something new.
Not saying following or coping isn’t good, since it’s proven successful by others. Many would know that Japanese are good copier and innovator such that they can make an old idea / product new.
I believe if we are going to make a Singapoe YouTube, it should be better than the current YouTube or be targeted at a different group of users with innovative functions etc.
If the Singapore YouTube we are talking is just going to be a copy of the current YouTube and with only slight improvements etc, I suggest the idea be dropped as it will only be a waste of funds.
And, instead, take on another idea.
The decision makers should:
Groom more entrepreneurs
Head-hunt potential entrepreneurs from schools and institutes.
(Self-made entrepreneur higher risk-taker, tough against failures)
VALUE THEM, not creating some worthless competition and end of story. (Should put more effort to make the entrepreneur competition pieces into reality if they are practical enough to be made reality)
Feb 10th, 2007
Talking Cock Sing Song Tube?
Atok, Don’t fall too many times. If so, you will become unemployable with a high risk profile of failure….
Even the government wouldn’t want you in the civil service. A failed entrepreneur is as good as dead.
Feb 11th, 2007
chong3
Since the second generation, through the third, and right to the current student in the schools, the instinct of people has been intelligently enabled and intuited. Inline with the disruptive technology, the individual entrepreneurial spirit has evolved to be the governmental entrepreneurial spirit. The most intelligently educated has been working in teams to build great successes on the existing great resources. By nature of the intelligent and intuited instinct, these people could not see opportunity or believe in something without the justification of intelligent analysis.
Creating a new business like youtube, or a new invention, or the growth of genus depends solely on the natured instinct of the people.
The curiosity and imagination out of the natured instinct is the mother of all new creations. In the process of the natured instinct interacting with circumstance, the creativity prevails if it is maintained and developed and is stifled when it is turned into intuited instinct. Creativeness decreases generally when intelligence prevails.
The natured instinct could not be measured intelligently. It could only be easily known when it turned into great success or failure. The world is dominated intelligently that could not and chose not see it but it resides in every one of us
The instinct of people either intuited or natured decides all action based on the Total Cognitive Sense.
The Total Cognitive Sense is a state of mind, or a belief, or a feeling or a sum of the three arises on or is generated from a kind of collective or summery of the experience and knowledge that have interacted and obtained from society, family, education, self study, guidance, inculcation and any other sources plus the appropriate awareness of self capability.
The collective or summery process like a mixer continuously receiving all ingredients in a never stopping blending process that are producing a ever changing of mix- the total cognitive sense.
It embeds into the instinct that decides the best possible move consciously or unconsciously in case of emergency.
The intuited instinct base on this sense with intelligent analysis to decide the logical move or an intuition move solely base on the past experiences and knowledge in an emergency.
Natured instinct decides the move while there is no vital information of the ultimate end available to explore the unknown or the creation of new entity. By this nature the move is always abnormal or a surprise in the eye of the general public and against the intelligent belief. It inclines in an emergency, to make the move for the best possibility that is based on belief.
The value of the natured instinct could not be measured and comprehended as it is decided by the ongoing development of that value. It spurs up the creativeness, but creativeness itself is worthless until it turns into an invention, product, service, new entity or great failure.
Unless the people understand the different of this intuited and natured instinct of human, we are then nearer to the creation of great new businesses and inventions by the individual entrepreneur. An entrepreneurial nation could then be possibly built.
Many of us strand at facing the threat and opportunity brought by the globalization and technology evolution. To help ourselves and to make our life better, we need to free ourselves from our usual thinking by understanding our instinct where the “X†factor resides.
Feb 12th, 2007
john wong
Let me quote from http://theory.isthereason.com/?p=1509
Youtube is not copyright friendly and Skype is not telco friendly. A break-thru’ product or service is about “breaking the rule”.
In Singapore, one is more likely to be arrested before one can break the rule and come out with a break-thru’ product or service.
Food for thought?
Feb 27th, 2007
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