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5 US venture capital shifts every Southeast Asian founder should be tracking right now

Imagine two founders raising their first million dollars this year. One is in San Francisco. She emails a former operator who exited a company in her space. He replies in two hours. They meet the next morning. The term sheet arrives within the week. The other is in Singapore. He pitches a regional VC firm. […] The post 5 US venture capital shifts every Southeast Asian founder should be tracking…

5 US venture capital shifts every Southeast Asian founder should be tracking right now

Five major changes in US venture capital are reshaping how Southeast Asian founders should approach raising funds. The first shift is the rise of solo GPs, or single-person funds. These investors make deal decisions quickly, often in days, compared to traditional VC firms that take months. The second shift is operators beating institutions for the best founders.

Seasoned founders are now opting to work with operators who have proven track records, rather than relying on prestigious brand names. The third shift is the disappearance of the middle funding ladder. Traditional VC firms are focusing on mega-rounds, leaving little room for middle-stage deals. Southeast Asia is experiencing the same trend, with only a handful of mega-rounds dominating the funding landscape.

The fourth shift is the increasing normality of selling shares before an IPO. US founders can now sell portions of their shares on the secondary market, providing personal liquidity when IPOs are not a viable option. Lastly, the value of a cheque from investors has become less important. US founders now prioritize factors such as distribution, customer introductions, hiring networks, and strategic advice.

Southeast Asian founders need to adapt to these changes if they want to gain a competitive advantage in the fundraising landscape.

Written by urgent.news from e27's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.

Read the original at e27.co →

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