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Startups looking at going global should first establish proof of local traction before doing so, John Lim, Partner at Meet Ventures, said in an interview with AsiaTechDaily.
“If you can’t generate demand locally, it is usually even more difficult to generate demand overseas,” Lim said, adding that many good Series B/C startups he has come across already have significant traction at home before they embarked on overseas expansion.
Meet Ventures is a consultancy firm that specialises in running startup accelerators and market access programs. Its team comprises of former VCs, program directors, consultants, and startup CXOs.
The firm’s end-to-end services including program structuring, startup sourcing, startup interviews and selection, mentor recruitment, organising masterclasses, business matching, coaching, day-to-day operations, startup fundraising support, and organising demo days.
Lim talks more about Meet Ventures, his tips to startups, and more in an interview with AsiaTechDaily. Edited excerpts below:
I used to work at SGInnovate ($200 million deeptech fund) and LongHash Ventures ($100 million web3 fund). Currently, I run an innovation consultancy firm called Meet Ventures that helps corporates to run their accelerators and government agencies to run their market access programs. We also represent a few family offices and PE firms to scout for Series B/C/D startups.
We are sector agnostic but prefer startups that are based in or operating in the APAC region. As we are looking for growth-stage startups, healthy financials and a consistent growth rate are important. Achieving profitability is a plus point.
Our investors can write cheques of $10-100 million. We look at around 2-3 growth-stage startups per year. We welcome overseas-headquartered startups who have a presence in APAC or at least have the intention to do so after receiving funding.
Healthy revenue figures. Discipline in spending. Consistent growth rate over the past 3 years. Profitability is a plus.
Investing based on the startup’s heuristics. Winning many pitch competitions and hackathons does not automatically mean that a startup is good.
Asking for very high valuations without good traction or a good reason to back up their demands.
For early-stage startup founders, I think the team and especially the CEO is very important. 3 questions I usually ask are
1) What is the background of the CEO and team?
2) What is your monthly burn rate and what do you spend on?
3) What is your monthly revenue and how much of that is recurring?
I think going global is a good long-term vision to have. But it’d be good to see proof of local traction before venturing overseas. If you can’t generate demand locally, it is usually even more difficult to generate demand overseas. Many good Series B/C startups that I come across already have significant traction at home before they embark on overseas expansion.
Sustainability is definitely an area to look at. I think the impact goes beyond financial returns but it also impacts our lives and the lives of future generations.
1) Bible. A pastor once said that our theology impacts our philosophy on life, which impacts the decisions we make and actions we take.
2) The Intelligent Investor by Benjamin Graham. Fundamentals are important.
3) Shark tank. Good lunchtime entertainment.
Live. Laugh. Love.