Asia Startup Lessons

  I have been ghosted by more venture capitalists than I care to count. At this point, ‘we’ll circle back’ has an infinite vesting schedule Over 10 years of building my startup, I estimate that roughly 70% of all meaningful investor interactions ended in radio silence. Not a no. Not a maybe. Just… nothing. Radio silence, distilled down to its purest, uncut form. I’m not talking about the cold outbound email that goes unanswered. I’m talking about investors who requested a meeting, sat through a pitch, asked for data, received it, and then vanished from the face of the earth like they entered witness protection. Let me be clear. I don’t need or expect every VC to say yes. I’ve heard no plenty of times, and I respect it. A clear no is a gift. It lets me move on, refine the pitch, and spend my time on investors who are actually interested. What I cannot respect is cowardice dressed up as being busy. You asked for the meeting Meetings were had, partners and associates were introduced, ...

  I am writing this on behalf of every entrepreneur that has had the guts to start a business and raise venture capital. Anyone who says that raising money is easy simply has not endured it. There is a notion that Asia is awash with venture capital. We see the headlines that billions is being poured into startups from Beijing to Singapore and everywhere in between. The reality is that most of that venture capital is going into very few late-stage companies that are on a clear path to success. At any given moment, there are hundreds of thousands of startups that need venture capital. However, only 2% will get it. Let me begin by saying that I don’t think every idea or founder deserves to be funded by venture capital. Raising money is a rite of passage and a very important filter in the startup game. That said, why does the process of raising venture capital so miserable? I estimate that I have had at least 150 investor meetings over the life of my startup. That is under 20 per year ...

  A lot of factors will determine your startup’s success. Product innovation, consumer adoption, and competition are of course critical factors but get too much ink in the startup press. What is often only given lip service, but is in my opinion the most fundamental determinant of success, is the people you hire today. I have been very vocal in conveying the challenges that startups in Asia face, particularly in building teams beyond the founding members. People, not your product, will be your greatest long-term asset. As you build your team my plea is that you build your startup for what you want it to be and not for what it is today . When you are a small team of founding members you are full of enthusiasm for your product and the opportunity ahead of you (as you should be). Hopefully your idea will gain traction and you will be in a position to raise money or reinvest positive cash flow to drive growth. One of your first investments will likely be in hiring your first non-found...