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Startups are evolving to manage growth alongside profitability



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Amit Anand
Contributor

Amit Anand is a founding partner of Jungle Ventures and an early pioneer and leader in the development of Southeast Asia’s venture capital industry.

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It was only a matter of time.
As more tech companies go public, the necessary disclosure has meant that with access to more information on the financial condition of many startups, mainstream investors have begun questioning just how profitable and sustainable these startups are.
Naturally, this has resulted in some skepticism, and tech firms around the world are slowly changing how they function to address these concerns.
At Jungle Ventures, we have observed the following key trends in how the startup ecosystem is evolving:
Moving beyond demand-side innovation
Building a defensible moat is essential for the long-term success of any startup. For undifferentiated tech-enabled services like food delivery or mobility, user exclusivity is challenging to attain, as the user base is rather flirtatious and has low to no switching costs. In such cases, innovating just to meet customer demand might not be enough. It is interesting to note that startups are now focusing on supply-side innovation to build a long-term competitive advantage.
One of these success cases is Do …

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