Scott Hartley: Global Pre-Seed VC, Regional Investment Insights & Valuation vs. Pricing Risk in Emerging Markets - E352

Scott Hartley, Managing Partner of Everywhere Ventures, and Jeremy Au discuss three main themes:

1. Global Pre-Seed VC Investing: Scott presented a contrarian view against the conventional wisdom that pre-seed and seed-stage investing must be localized. He argued that with modern communication tools and the evolving VC landscape, it’s feasible to be a global pre-seed investor. He discussed how Everywhere Ventures adopts this approach and shared that they’re relatively price insensitive, typically entering investments with valuations between $6 and $8 million. He talked about how they emphasize team evaluation and leverage a network of trusted founders and operators to access global deals, focusing on the right timing and market relevance for business ideas.

2. Regional Investment Insights: Scott shared his experiences and insights from investing in Southeast Asian companies like Kumu, Lomotif, and Booky, and described the process of engaging with these companies from their early stages and aiding them in finding product-market fit. He also highlighted that while valuations in Southeast Asia have traditionally been lower, there's a shift towards market-clearing rounds, making these markets increasingly attractive to global investors.

3. Valuation and Pricing Risk: Jeremy and Scott touched on the dynamics of valuation and pricing risk in VC. Scott explained that while early-stage investments carry less pricing risk, later-stage investments present a significant challenge. They discussed the varying opportunities in global markets such as lending to Indian-based SaaS companies against US dollar-denominated accounts. He also talked about the Philippine SaaS market where valuations were approximately half of the typical US valuations, reflecting the diverse supply and demand dynamics of capital and highlighting the need for investors to be astute in understanding and leveraging these differences.

They also talked about identifying and nurturing early-stage startups with a global potential, the nuances of market adaptation, the role of trusted networks in deal flow and investment decisions, and the importance of aligning investment strategies with technological trends.

Watch, listen or read the full insight at https://www.bravesea.com/blog/scott-hartley

Get transcripts, startup resources & community discussions at www.bravesea.com

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