"One thing I've always tried to avoid is jumping on the current hype wave. Right now, there's a lot of buzz around generative technologies, and while there's some cool stuff being built, you need to ask where the real value creation lies. If you can pinpoint that, you'll identify the companies that will be sustainable in the next few years. From a fintech perspective, the reason it's had strong returns in other developing markets is that once you reach a certain scale and integrate digital business models, it generates significant cash flows. However, when businesses look at Southeast Asia, they often see half a billion people, the growing markets, and the highly digital population with rising GDPs. But the real challenge lies in navigating the diverse rules, languages, and cultures of the region." - Sam Gibb
"I wouldn't say there are many funds focused on fintech, especially not at the seed stage. There are some funds that work at later stages, and we typically collaborate with them. If you look at the evolution of ecosystems in other markets, you usually see more vertical-specific funds emerging. When I considered this, I thought, from an investor's perspective, why would someone invest in a relatively small generalist fund when they could choose a larger one with a decade of experience and established infrastructure? It would be much easier for those funds to attract LPs. I realized I didn't have any differentiating factors to compete in the generalist space, so I decided to focus on fintech rather than continue as an angel investor." - Sam Gibb
"I find it really interesting to see how people try to enter the space. Some believe they have an edge, but they haven't proven it yet. You have to ask, how do you know this is viable? Can you access enough qualified opportunities? Operating in a specific vertical is more challenging. As a generalist, I reviewed about a hundred opportunities monthly. Now, focusing on a specific vertical, it's more like 10 to 20. Business creation has slowed significantly, varying by vertical. Can you create a fund with reasonable economics there? Fundraising is challenging and requires a long-term perspective. I'm always surprised by first-time fund managers who think it will only take a month or two. You can't rush this process, especially in Southeast Asia, where relationships are key." - Sam Gibb
In this episode, Jeremy Au speaks on the New Zealand law to Southeast Asia VC journey, regional fintech upside, and aspiring VC partner advice.
Keywords: Sam Gibb, New Zealand Law to Southeast Asia VC, Regional Fintech Upside, Aspiring VC Partner Advice, Southeast Asia, VC, FinTech, Founder Story
