EP 293 - Jeremy Au - Monk's Hill Ventures - In Southeast Asia, There Is a Lot of Future to Be Built
Sep 5, 2023
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Jeremy Au, an investor and the Chief of Staff at Monk's Hill Ventures, shares his experience in building companies and his transition into venture capital. He discusses entrepreneurial success patterns, challenges in Southeast Asia, the necessity of profitability for startups, and long-term optimism. He also highlights the joy of helping founders navigate challenges and build a better future.
The ability to clearly explain the problem being solved is essential for entrepreneurial success in Southeast Asia.
Startups in Southeast Asia face unique challenges related to unit economics and need to prioritize profitability.
Venturing into Southeast Asia requires a long-term perspective and balancing growth expectations with a path to profitability.
Deep dives
Exploring the Importance of Clear Problem Definition
One of the main success patterns is being able to explain the problem very well and rally capital, talent, and sponsorship for it. This is crucial in Southeast Asia, where the market is still emerging from a global perspective. Startups need to effectively translate the specific problems they are solving to audiences who may not be familiar with the local context. Success lies in being able to clearly describe the customer and the magnitude of the problem to a global audience.
Understanding Unit Economics for Sustainable Growth
A common failure pattern in Southeast Asia is the challenge of unit economics. The market, characterized by lower willingness to pay, tight margins, and cost sensitivity, presents unique challenges for startups. There can be a tendency to focus on top-line revenue growth without careful consideration of profitability. Founders and investors need to define and optimize for true gross margin and contribution margin to ensure a sustainable business model and avoid relying heavily on future funding rounds.
Long-Term Optimism and Building the Future
Venturing into Southeast Asia requires a long-term perspective. Over a 50-year timeframe, given the region's growth potential and macroeconomic demographic dynamics, the future looks promising. However, within a 10-year VC timeframe, it is important to balance growth expectations and ensure a path to profitability. Sustainable and deliberate growth, coupled with a disciplined executive team, leads to healthy companies that can attract potential buyers or facilitate successful exits.
The Joys of Problem-Solving in a Sci-Fi-Like Ecosystem
Being in the venture capital industry feels like living in a sci-fi world every day. The constant exploration and solving of real-world problems using technology and innovation is an exciting and rewarding aspect of the job. Working with founders to help them think through strategic challenges and witness the transformative impact they can achieve is deeply fulfilling. Being able to shape the future for the better and create a legacy for future generations brings immense joy.
Investing in a Future for the Next Generation
Investors have the opportunity to vote for a future they would love their children and grandchildren to live in. By providing the necessary capital, guidance, and support to startups, investors can shape the landscape to benefit future generations. This implies a responsibility to make thoughtful investments, actively consider long-term implications, and work collaboratively with founders to build sustainable businesses and technologies that can create a positive impact for generations to come.
In this episode of the Asia Tech Podcast, Jeremy Au, an investor and the Chief of Staff at Monk's Hill Ventures, talks about his experience building companies, the lessons learned, and his transition into venture capital.
Some of the topics Jeremy covered in detail include:
Entrepreneurial success patterns and the importance of being able to explain the problem one is trying to solve
The challenges of unit economics in Southeast Asia
The necessity of creating a path to profitability for startups
Long-term optimism about the future of Southeast Asia
The joy of helping founders navigate challenges and build a better future
Some other titles we considered for this episode:
If There Is a Problem, Let’s Go Fix It
There Are Different Seasons In Your Life
Venture Capital Is About Building the Future
There Is a Lot of Work and You Don’t Know What Needs to Be Done
It’s a Humbling Experience
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