SINGAPORE: Asia-focused private equity raised roughly US$30 billion in 2011 according to a report last year by Private Equity International.
However, with more than half of that goes into China and India, startups in the rest of Asia are left with fewer funding options.
According to experts, most Asian startups rely on traditional funding sources like government grants and loans from family and friends.
But some said crowd funding, or sourcing for investment through the internet, could be a solution.
Three-year-old tech startup Gametize helps businesses reach out to consumers through interactive game concepts.
These games can be as simple as a fun pop quiz or one that requires the consumer to complete tasks and upload pictures.
Based in Singapore, the firm includes MySpace founder Brad Greenspan's Social Slingshot Fund among its investors.
And although it is not actively raising funds, it is looking to tap on crowd funding in the next few months.
"Instead of relying on just one investor, one or two, you're relying on maybe, 10,000 less wealthy individuals - the amount raised will still be pretty much the same," said Keith Ng, co-founder & CEO of Gametize.
He added: "And as far as I understand, crowd funding (investors) don't take equity into the company, so that might be more preferable to the company."
Still, some experts are skeptical about crowd funding sites such as China's Dreamore, FundersClub in the US and Cliquefund in Singapore.
They said the collective wisdom of the crowd may not necessarily help to select the best startups to fund.
Bernard Lee, CEO of HedgeSPA, said: "Some of these websites - the things that they end up identifying would be what we call easy revenue ideas, things that has to do with retail, like fashion, because they tend to be a lot more comprehensible, versus if it is a very specialised medical innovation."
And if all else fails, Gametize said the startup will just have seize on every opportunity to sell itself.
And one way it drummed up publicity was by appearing in a reality TV programme Angel's Gate, which was produced by Channel News Asia, with support from Singapore's Media Development Authority.
The TV show featured entrepreneurs who had to pitch and be grilled by a panel of investors.
- CNA/fa
Asian startups tap on crowd funding for capital
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Asian startups tap on crowd funding for capital
