Genesis

The first quarter of 2023 was not pretty for the tech ecosystem globally – a continued venture capital reset, repeated rounds of tech layoffs, the failure of Silicon Valley Bank (SVB) and Signature Bank followed by the distressed sale of Credit Suisse, a near -60% decline in startup funding across all stages.

The dreaded “C(ontagion)” word raised its ugly head in early March when the bank run on SVB came to light. With $175.4 billion in assets, serving an estimated 20,000 startups and 1,000 venture capital firms, and impacting the livelihoods of countless individuals, the stakes were high when the fate of SVB hung in the balance. The potential collapse of SVB, a historic and trusted financial institution for the startup ecosystem, caused widespread confusion and anxiety. As the go-to bank for founders and venture capital backers in Silicon Valley, SVB had long been regarded as the cornerstone of the financing universe for the tech industry. The unfolding events posed a grave danger that could potentially cripple the tech world, making timely resolution crucial for all those involved.

So, just how important is SVB to Silicon Valley? At the end of 2022, SVB was the 16th largest bank in the United States and the largest by deposits in Silicon Valley, solidifying its position as the go-to bank for venture-backed tech startups. Legendary venture capitalist, Michael Moritz, a longtime partner at Sequoia Capital calls SVB “the most important business partner” in Silicon Valley over the past 40 years. According to Steve Papa, the founder and CEO of Parallel Wireless, a startup specialising in cellular communications systems, SVB’s collapse has left a significant void in the innovation economy that may take a decade for someone else to fill. As a serial entrepreneur with successive exits such as Endeca, an enterprise software company that was acquired by Oracle for $1 billion in 2011, and Toast, a restaurant-industry point-of-sale system developer that went public in 2021, Papa attests to the pivotal role SVB played in his startups’ success. SVB’s extensive network of venture investors, financing options, payment accounts for overseas customers, and other services were a driving force behind his ventures, underscoring the significant impact of SVB’s downfall on the startup ecosystem.

Lending Into the Tech Ecosystem Key to SVB’s Dominance as a Tech Bank

With over 40 years of experience, SVB has established itself as a key player in the Silicon Valley financing landscape through its venture debt offerings. Its comprehensive product suite, tailored to the unique needs of the tech industry, includes mortgages for executives, credit lines for VC funds to maintain capital flow, and venture debt for startups that may be considered uncreditworthy by larger lenders. Moreover, SVB’s global offices enable it to serve VCs and startups worldwide, extending its reach beyond the US where it has been a trusted banking partner for over half of all tech and life sciences startups.

As of December 31, 2022, SVB’s loan book was valued at $74 billion, encompassing a diverse portfolio of loans. Approximately 56% of its loan portfolio was dedicated to venture capital and private equity firms, secured by limited partner commitments and used for investments in private companies. Mortgages for high-net-worth individuals accounted for 14% of its loans, while 24% were allocated to technology and healthcare companies, including 9% for early and growth-stage startups. Notably, Bloomberg reports that SVB’s loan portfolio comprises primarily lower-risk and lower-yield loans and strong credit performance overall.

Genesis’ Jeremy Loh, who previously worked alongside SVB in a venture equity investor role during his time in the US, witnessed firsthand how SVB served as a supportive banker and venture lender to startups in their early stages. This approach created a sense of loyalty between founders and their capital backers. In fact, SVB’s wealth management arm, “SVB Private,” identifies potential private clients early on, providing liquidity for founders whose net worth is tied to their company’s valuation, particularly those who have exited their businesses and are flush with cash.

Credit Crisis or Opportunity post-SVB?

The surge in venture lending in recent years has been driven by startups’ increasing need to diversify their funding sources and reduce reliance on equity raises. PitchBook’s data shows that in the second quarter of 2022, the venture debt market saw the second-largest total value of loans in the past decade. Despite rising interest rates, over $30 billion in loans were provided to US-based VC-backed companies in 2022 (Figure 1), indicating a continued appetite for debt. SVB, being one of the largest venture lenders, exiting the market will create a gap for technology companies seeking to raise debt. It remains uncertain if other venture lenders will step forward to fill this void, especially for companies with undrawn SVB lines.

Figure 1: US venture debt activity – fourth consecutive year venture debt surpasses $30 billion in value. (Source: PitchBook)

So, who is stepping up to fill this gap left by SVB? In the US, First Citizens BancShares (Nasdaq: FCNCA) based in Raleigh has agreed to acquire SVB. This acquisition will position First Citizens as one of the top 15 banks in the US, and the 17 SVB branches will operate as “Silicon Valley Bank, a division of First Citizens Bank.” In Europe, HSBC has acquired SVB UK, which reported a profit before tax of £88 million for the financial year ending December 31, 2022. With this acquisition, HSBC aims to strengthen its commercial banking franchise and enhance its ability to serve innovative and fast-growing firms, including those in the technology and life science sectors, in the UK and internationally. This acquisition is part of HSBC’s ambition to become the tech bank of choice, as evidenced by its announcement in June 2019 to set up an $880 million technology fund to identify promising companies in southern China’s Greater Bay Area.

Reports indicate that former SVB employees have joined JPMorgan Chase, the largest bank in the US, in recent years, attempting to transplant their Silicon Valley network and investment expertise. During the SVB crisis, JPMorgan was seen as the biggest and safest bank in America by tech investors and entrepreneurs, and it is estimated that up to 90% of those who previously banked with SVB have since moved part or all of their accounts to JPMorgan, according to informal tallies shared by US VCs.

Additionally, there are existing US private credit players such as Hercules and TriplePoint, well-known names in growth and venture debt financing, that can potentially benefit from the SVB void to increase their market dominance. Hercules, with a track record of 18 years in venture and growth stage lending, has committed over $16 billion in capital to venture and institutionally-backed growth companies. Similarly, TriplePoint, an experienced venture lender, has overseen more than $9 billion in leases and loans to over 3,000 leading venture capital-backed companies.

With the increasing demand for venture debt, the venture debt market has become more lender-friendly. Overall, rates have risen and spreads have widened, allowing lenders to negotiate better covenants, and warrants have returned to debt term sheets as well. In the past, some lenders held back from warrants when company valuations were inflated and investors competed fiercely for deals, but the circumstances have changed. Lenders now see opportunities in recapitalization rounds, where having new equity is advantageous, and penny warrants do matter due to the longer timespan.

However, the repercussions of SVB’s decline could result in higher capital costs and tighter cash flows for startups, particularly those based in the US that have relied on SVB’s credit lifeline. As the largest and one of the most experienced venture debt lenders offering attractive rates to startups, it remains to be seen if the likes of First Citizen Bank and HSBC, or even JP Morgan can rise to the occasion.

In fact, recent insights from the Venture Debt Conference (March 2023, New York) via Pitchbook (reproduced below) confirm that while there have been no fundamental shifts where venture debt is concerned, the continued liquidity crunch coupled with the increased demand for venture debt will impact positively lending terms amidst a more realistic fundraising environment.

Pitchbook Analyst Note from the Venture Debt Conference (10 April 2023)

The use of venture debt has gained in popularity as many startups look to remain private longer and seek creative forms of financing that minimize dilution.
The collapse of SVB highlighted the importance of liquidity and the need to have cash on hand.
A frozen exit environment observed since the start of 2022, along with cooling fundraising figures, has created a liquidity crunch in private markets. This liquidity crunch and the exit of SVB creates a unique opportunity for smaller private credit players to take up market share.
Increasing levels of capital demand relative to supply will allow venture debt lenders to increase debt pricing.
While credit underwriting has not changed much fundamentally, shifting valuation paradigms will renew the importance of taking a hard, realistic look at growth and profitability outlooks.

Impact of SVB’s Collapse on Venture Debt in Asia

Over the last decade, there were two major forays into India and China as SVB sought to expand its overseas footprint. In 2008, SVB formally launched a venture lending operation after having opened offices in Bangalore in 2004 and Mumbai in 2007. However, 7 years later, SVB sold its venture debt arm to Singapore’s Temasek who renamed the entity Innoven Capital India, part of the Innoven Capital Group.

While SVB retreated from India, it subsequently set up a joint venture in China with Shanghai Pudong Development Bank. SPD-SVB was launched in 2012 to help Chinese startups do cross-border business with the US and facilitate capital raising across both shores. This JV was jointly owned by both banks but operating with its independent balance sheet. It is reported that SPD is now considering acquiring the SVB subsidiary in China.

In Southeast Asia, while market talk was that SVB was keen to understand the venture debt landscape in the region, no concrete expansion or lending took-off here. Taking a leaf out of its China and India expansion challenges, SVB perhaps recognized that it might have been a relatively large undertaking for it to attempt to build an organic venture debt business in Southeast Asia and instead chose to mostly co-lend with reputable venture lenders active in the region.

Given its lack of presence in the region, SVB’s collapse has not had a significant impact in Asia as Asian start-ups did not have any real direct exposure to SVB. On the flip side, the collapse did spur many parties to reconsider their corporate and personal banking relationships. At its 1Q’2023 AGM, DBS CEO Piyush Gupta mentioned that Singapore’s largest bank has benefited from inflows amounting to a “few hundred million” in the aftermath of the collapse of SVB given the perception that DBS and Singapore were perceived to be “safer” banking havens.

Figure 2: US VC deal activity (Source: Pitchbook)

Startup valuations are also retreating with mid to late-stage companies facing mounting pressure to justify high valuations while seed-stage deals have seen valuation moderately increase. ‘Tourist’ investors who joined the flurry of VC investing and injected capital into startups at eye-popping valuations are taking a more cautious view of deploying more capital into this sector.

The recent funding trend should not be used as a yardstick to measure the demand for innovative solutions to the world’s pressing challenges. Technology remains critical in addressing issues such as climate change, financial inequality, aging populations, and healthcare, which are projected to worsen in the coming years. As a result, sustained investment in innovative technologies is essential. Long-term venture investors with multiple funds can breathe a sigh of relief, knowing that the demand for their expertise and resources will remain high in addressing these challenges.

Going forward, startups will also need to recalibrate expectations. The liquidity crunch will add another layer of difficulty for venture-backed startups looking to raise equity rounds amid the ongoing macroeconomic headwinds. The days of limitless capital to fund “growth-at-all-cost” are no longer there. Venture investors are actively seeking out startups that can demonstrate profitability, and startups must adjust their strategies accordingly. Today’s startup pitches highlight a low burn with a long cash runway – redefining the metrics of an attractive startup to a venture investor.

The House View is reproduced from Genesis’ Limited Partners Quarterly Update. The content in this article is meant to be informative and for general purposes only. It is not and shall not be construed as investment advice.

An internship is a great way for undergraduates to gain real-world experience and develop new skills while still in university. However, getting an internship can be competitive, and the interview process can be daunting.

We asked our Communications and HR Manager, Michelle Low, to share some tips to help you ace your internship interview:

#1: Research, research, research

Before your interview, it is crucial to research the company you are applying to. This will help you understand their mission, values, and culture. Look at their website, social media accounts, and recent news articles to get a sense of what they do, who their customers are, and what their goals are.

You can also check employee reviews on websites like Glassdoor or better yet, reach out to their current and past interns for front-seat review. This will help you tailor your responses during the interview and show that you are genuinely interested in the company.

#2 Prepare for the predictable

Most internship interviews will include common questions such as “Tell me about yourself,” “What are your strengths and weaknesses?” and “Why do you want to intern with us?”

The best way to prepare responses to these questions is to understand yourself and what you can bring to the table. So list out your strengths (e.g. “advanced Excel skills” or “willingness to learn”) with examples of how you applied these strengths in other situations. It’s always best if your strengths match up to what’s stated in the job description.

In terms of areas of development, do not be shy about admitting them. In fact, the interviewer will appreciate your honesty and self-awareness. But always add what you are to mitigate your weaknesses. For example, “I am weak at proofreading my own work so I try to finish it ahead of time and ask someone to help me with proofreading.”

#3 Show enthusiasm and energy

During the interview, show your interviewer that you’re excited about the opportunity to intern with their company. Smile, make eye contact, and speak with energy and enthusiasm. This will demonstrate that you’re passionate about the work you’ll be doing and will help you stand out from other candidates.

#4 Ask thoughtful questions

At the end of your interview, you will likely be asked if you have any questions. Use this opportunity to ask thoughtful questions about the company, the internship program, or the interviewer’s experience. This will show that you have done your research and are genuinely interested in the company.

For instance, “I read on your website that venture debt is not the same as revenue-based financing but I am not clear as when startups should pick one over the other.”

#5 Dress for success

First impressions matter, even in online interviews. Dress appropriately for the company culture and industry. If you are unsure of the dress code, it’s better to be overdressed. Don’t forget to check your lighting, background, and internet stability.

#6 Follow up with a thank-you

Send a thank-you email within 24 hours of the interview, reiterating your interest in the internship and thanking the interviewer for their time. And don’t forget to attach any documents as PDFs – viruses are a big no-no.

With these tips, you’re sure to ace your internship interview and take the first step toward an exciting and fulfilling career. Good luck!

In a wide-ranging interview with Olivier Raussin, Co-Founder and Managing Partner of FEBE Ventures, we explore his career and experience working in the Southeast Asian tech ecosystem.

Olivier talks about his career in big tech, his own startups, and how he found his passion for venture capital. He shares insights into the challenges faced by startups and his thoughts on exciting trends in Southeast Asia, the future of venture capital, and offers advice for young professionals considering a career in VC

FEBE Ventures (“For Entrepreneurs, By Entrepreneurs”) is an early-stage Venture Capital fund supporting outstanding entrepreneurs in Southeast Asia.

Can you tell us how you ended up in Vietnam from France via Brazil?

I started my career in VC in Europe before having the opportunity to move to Brazil to lead the Latin American practice of my fund at the time, Project A Ventures. During the seven years I spent in Brazil, I had the privilege of working with many talented entrepreneurs and witnessing the incredible growth of the tech ecosystem there, including the emergence of several unicorns.

As I gained more experience investing in the region, I began to see many similarities between the tech landscapes in Latin America and Southeast Asia. Both regions have rapidly expanding economies (like Brazil, Mexico, Indonesia & Vietnam) that are ripe for digital transformation.

So, I decided to move to Singapore in order to immerse myself in the SEA startup scene and build relationships with entrepreneurs and investors in the region.

You pivoted a few times in your career. What prompted the move into VC?

I spent almost a decade of my career working in Big Tech, holding C-level positions at companies like Microsoft and Google in Europe. In between these stints, I had always felt an entrepreneurial itch and spent six years bootstrapping two startups.

However, it wasn’t until an old friend from university invited me to join his new $100M, operationally focused fund, that I realized that venture capital was a natural next step for my career. VC allowed me to combine my experience in Big Tech with my passion for entrepreneurship, and gave me the opportunity to work with talented entrepreneurs to help them build and grow innovative businesses.

You spoke about how startups don’t grow in a linear manner. Can you share with our readers about the wine business that nearly died many times but eventually did well.

When we were building an ecommerce business in Brazil, we faced many challenges that nearly brought us close to “be short cash” several times. These issues included a lack of capital, long working capital cycles. On top of that, we made mistakes in scaling too quickly and making the wrong hires. Through perseverance, we were able to turn it around. Today, the company is healthy.

This experience taught me important lessons about operating a business and gave me insights into the challenges that founders face. As a VC, I try to bring this empathy to my interactions with founders to help them overcome the hurdles that come their way.

How do you prioritize and manage your tasks and responsibilities on a daily basis?

In the morning, I spend time reading and working on mid-term strategic topics, as well as engaging in reflection and deep work.

My afternoons are reserved for calls and meetings. This is when I engage with founders to discuss potential investments and provide support to our portfolio companies.

Overall, I find it helpful to block out specific times of the day for certain types of work and prioritize my tasks based on their level of importance. This allows me to focus my energy on the most critical areas and maximize my productivity throughout the day.

What are some trends or developments in Southeast Asia that you find particularly exciting or interesting?

Among the trends that I find exciting in Southeast Asia, there are two in particular that I would like to highlight. The first is the emergence of Southeast Asia as a hub for SaaS startups that are building global solutions for the rest of the world.

Secondly, I’m impressed by the increased innovation and unique business models being developed in the region, as opposed to simply copying successful models from other markets. Startups in Southeast Asia are now leveraging their specific local and domain expertise to create businesses that are new and unique, which is great to see.

How do you see our industry evolving in the next 5-10 years, and how are you preparing for those changes

In the next 5-10 years, I see a few key trends emerging in the VC space. One is a consolidation of the various VCs & PEs in the ecosystem, which will likely result in the emergence of multi-stage platforms as well as ultra-niche plays (vertical, countries, technology) that cater to specific segments.

In addition, we will see the startup exit market maturing, with more opportunities for private equity exits.

How do you maintain a work-life balance and avoid burnout in a demanding and absorbing role?

I make sure to go for a run or go to the gym, practice yoga every day, and take my Golden Retriever, Samba, for a long walk once a day. I try to maintain a healthy diet by limiting sugar and carb intake. I also find it helpful to step away from work by disconnecting from Whatsapp and emails a few days a year to enjoy a full digital detox.

What advice do you have for young professionals who are considering a career in VC?

For those considering a career in VC, my advice is simple: join only if you truly love the work. This is not a job for those looking to climb the traditional career ladder of consulting or MBA programs. It requires a deep passion for technology, innovation, and entrepreneurship, as well as a willingness to work hard and commit for the long haul. VC is not a career with immediate rewards, and it can take years of hard work and persistence before seeing the fruits of your labor.

However, if you are willing to put in the time and effort, the rewards can be significant, both personally and professionally.

Finally, any advice for startup founders amid the current difficult macro-economic environment?

Growth-at-all-costs is over. Profitability is the new mantra. In today’s market, investors are looking for companies that can demonstrate a clear path to profitability and sustainable growth.

To achieve this, it’s important to be disciplined about controlling your burn rate and tracking your cash flow. This means being strategic about how you invest your resources, and being willing to make tough decisions when necessary.

In addition, investors like to see high margins, high repeatability, and high capital efficiency. These are key metrics that demonstrate a company’s ability to generate sustainable returns over the long term. On the other hand, we prefer to see low levels of capital expenditure and working capital.

The current environment is challenging for everyone, but with the right mindset and strategy, you can weather the storm and emerge stronger on the other side.

Who is SVB?

In 1983, Bill Biggerstaff and Robert Medearis, former Bank of America managers, founded Silicon Valley Bank to cater to the specific needs of startup companies. The banking industry at the time had little understanding of startups, particularly those without immediate revenue streams. SVB recognized this gap and developed loan structures that accounted for the unique challenges faced by these companies, managing risk based on their business models.

At the end of 2022, SVB was the 16th largest bank in the United States and the largest by deposits in Silicon Valley, solidifying its position as go-to bank for venture-backed tech startups. Legendary venture capitalist, Michael Moritz, longtime partner at Sequoia Capital calls SVB “the most important business partner” in Silicon Valley over the past 40 years.

What happened?

The collapse of SVB, a trusted banking partner and venture lender to many tech companies and known as the “bank for private equity”, was a sobering event. With over 40 years of experience, SVB had developed a comprehensive product suite tailored to the needs of the tech industry, offering mortgages to executives, credit lines to VC funds to keep capital flowing, and venture debt to startups that larger lenders deemed uncreditworthy. Its global offices enabled it to serve VCs and startups worldwide, not just in the US, where it was a banker for 50% of tech and life sciences startups.

However, the bank’s downfall resulted from a fundamental mistake: investing in longer-term mortgage securities with over 10 years to maturity, rather than shorter-term treasuries or mortgages. During a period of historic lows in interest rates, SVB invested depositors’ funds in long-term treasury bonds. And as the Federal Reserve raised interest rates to combat inflation, the value of those bonds plummeted, causing an asset/liability mismatch and leading to the bank’s collapse.

SVB with a loan book worth $74 billion as of December 31, 2022, had a diverse portfolio of loans. About 56% of its loan portfolio was dedicated to loans to venture capital and private equity firms, which were secured by their limited partner commitments and used to make investments in private companies. Mortgages to high-net-worth individuals accounted for 14% of its loans, while 24% were to technology and health care companies, including 9% to early and growth-stage startup companies. According to Bloomberg, SVB’s loan portfolio included many lower-risk and lower-yield loans. The bank’s non-performing loans in 2022 represented only 0.18% of its total loans, suggesting overall good credit performance.

So what happens now that SVB is no longer available to serve the startup community in the US?

SVB’s absence in the startup community in the US is likely to have significant consequences. While Silicon Valley Bridge Bank has stepped in as a temporary successor, encouraging its clients to diversify their deposits and operations between banks, it appears that the damage is already done and most of SVB’s clients have already withdrawn their funds and switched to larger banks.

VC and PE funds that relied on SVB’s subscription lines of credit to bridge capital calls will face challenges. These lines of credit allow General Partners of a fund to delay the funding commitment from their Limited Partners for up to a few months. These funds will now have to establish new banking relationships to channel their capital call funding, which could cause delays in funding new investments and have downstream impacts on startups that require funding.

The rise of venture lending in recent years has been fueled by startups’ need to diversify their funding sources and reduce reliance on equity raises. According to PitchBook data, the second quarter of 2022 saw the second-largest total venture debt value in the past decade.

In 2022, more than $30 billion in loans were provided to US-based VC-backed companies, which showed an appetite for debt despite rising interest rates. As one of the largest venture lenders, SVB’s exit will create a gap in the market for technology companies seeking to raise debt. It is unclear if other venture lenders will step forward to cover this gap, especially for companies with undrawn SVB lines.

The Venture Debt Outlook Going Forward

The consequence of SVB’s demise may include higher capital costs and tighter cash flows for startups, leading to more distressed companies. SVB, which has been the largest venture debt lender and has offered attractive rates to startups, may face challenges in the future as it is likely to be sold to another bank. This could potentially make it more difficult and expensive for startups to secure debt capital. While there are over 170 active venture debt funds in the US, according to PitchBook, these debt funds may need to step up to gain a bigger share of the venture loan market.

A version of this article appeared on Genesis’ LinkedIn page on 21 March 2023.

From Parking Pandemonium To Soulful Serenity: Soul Parking’s Journey To Success

Kenneth Darmansjah is one of founders and CEO of Soul Parking, a technology-enabled parking solutions provider based in Indonesia. With his expertise in finance and business strategy, Kenneth has been instrumental in leading Soul Parking towards its mission of revolutionizing the parking industry in Indonesia.

Genesis talks to Kenneth about his journey and plans for Soul Parking.

Please share with us the origin story of Soul Parking. How did you come up with this ingenious solution to tackle the nightmare of motorcycle parking in Indonesia?

Picture this: you’ve just driven through Jakarta’s chaotic traffic, and your stress levels are already through the roof. You finally arrive at your destination, but finding a parking spot seems like an impossible task. And the population of motorized vehicles still rising in this hot and humid metropolis!

Having lived in Australia for six years, I asked myself, why is parking such a nightmare in Jakarta and yet more manageable elsewhere? What was even worse is that vehicle emissions are responsible for a whopping 70% of the city’s air pollution. To me, it became clear that the conventional parking business was no longer sufficient to meet the needs of Indonesia’s rapidly growing cities and was ripe for disruption. I was determined that there is a better and safer way for motorists.

That’s where Soul Parking comes in – with our innovative Compact Motorcycle Storage (CMS) and Soul Operating System (OS), providing hassle-free parking solutions. CMS is a multi-level portable parking solution for two-wheelers, while OS is a cloud-based software that digitizes existing parking buildings through data transparency provided for clients.

How did you come up with the interesting name, Soul Parking?

Soul Parking was hatched from the word “Soul” – where we wanted to convey a sense of comfort for drivers to experience hassle-free and stress-free parking amidst the chaos of the city. Interestingly enough, it also rhymes with the word “Solution”, both in English and Indonesian, and that reflects what we are trying to achieve through our innovative solutions.

What were some of the challenges you faced and how did you overcome them?

2020 was a turbulent ride for Soul Parking. Just one month after launching our first-ever Compact Motorcycle Storage in Central Jakarta, the global pandemic hit, resulting in stay-at-home orders and travel restrictions that heavily impacted our key target users: daily parkers.

However, we persevered and listened to feedback from our early users who appreciated the safety and convenience of our smart elevated parking system. To pivot our business strategy, we explored new revenue streams and partnerships, such as partnering with healthcare services to facilitate PCR tests, logistics companies, cloud kitchens, and automotive workshops.

Additionally, we invested in new technology that enabled automated parking systems, contactless payments, and real-time monitoring through our parking management dashboard. These initiatives have allowed us to weather the storm, successfully turning around our traffic volume to reach full capacity and broaden our services to cater to a wider range of vehicles and partners. Because of the challenges, we emerged stronger and more resilient than ever.

Let’s shift the focus to some of Soul Parking’s impressive achievements in the past two years. What are you particularly proud of?

Despite the challenging circumstances, we are proud to have secured over 30 locations in six highly saturated provinces across Indonesia, including some of the most congested areas like DKI Jakarta and Bali. Our partnerships with business owners and property developers in these areas have enabled us to cater to the high demand for parking and provide hassle-free solutions for millions of vehicles.

We are also thrilled that our innovative mobile app has been well-received by a diverse range of users. Our tech team works tirelessly to optimize its features, providing an intuitive interface and user-friendly design that allows for paperless ticketing, cashless payments, and monthly memberships. As a result, our mobile app has seen significant growth in users and high retention rates over time.

And in the face of economic uncertainty, we’re proud to prioritize healthy and positive unit economics, ensuring profitability across all sites. We’re pleased to report that we’ve been able to post a positive bottom-line at all sites, proving that our business model is resilient and not cash-burning. This is a humbling achievement for us and demonstrates our commitment to sustainable growth.

What and whom do you attribute your success to?

As an early-stage company, Soul Parking has only just started and we have a long way to go to achieve our ultimate goal of pioneering a leading tech-enabled parking solution in Indonesia. However, we have already accomplished some important milestones along the way.

Every day, I attribute our success to two groups of people. Firstly, I am grateful for the collective effort of each team member in Soul Parking who has contributed and played a crucial role in getting us where we are today. They are truly the backbone of our company, and without their support, we would not be where we are. I am grateful for our soulful talents who continue to push us beyond our limits and help us achieve greater success.

Secondly, the partners who believed in us and our mission to bring hassle-free, tech-enabled parking solutions to the chaotic streets across Indonesia. Our existing backers, such as Genesis Alternative Ventures, continue to provide strategic advice with key introductions that were instrumental in enabling us to achieve our milestones. All in all, we value all stakeholders’ support and are committed to ensuring that your trust in us continues to be well-placed.

What is your leadership style like?

As a leader, I believe that my role is to inspire and empower my team to achieve our collective goals. Drawing from my experience in the finance industry, I understand the importance of achieving results while maintaining a positive team culture. Rather than micromanaging, I take an empathetic approach to leadership, actively listening to my team’s concerns and providing the necessary support to help them succeed.

At Soul Parking, we have developed a set of founding principles that guide our team’s work: Simplicity, Openness, Unity, and Learn. By embracing these values, we strive for efficiency, encourage open communication, and foster a growth mindset. I encourage my team to share their ideas and celebrate diversity of thought, which I believe will lead to endless innovations and drive us towards our mission of revolutionizing parking.

Ultimately, I am committed to building a culture where every team member feels valued and supported, empowering us to reach our full potential together.

Do you have any advice for other founders of early-stage startups?

We know startups are a wild ride, but with the right mix of hustle, grit, and determination, you can make it happen. As a founder, it’s essential to have a clear and compelling vision that is grounded in a deep understanding of your target market. From there, focus on building a consumer-centric product and iterate until you find the perfect solution to solve your customers’ pain points.

Remember, your team is your greatest asset, so invest in building a strong foundation and the right culture from day one. Encourage open communication and empower your team to share their ideas and concerns. Together, you can overcome any challenges and achieve success. There are no shortcuts, but if you remain resilient, determined, and passionate, you will find your way to success. Keep pushing forward, and don’t forget to celebrate the small wins along the way.

Get ready to celebrate International Women’s Day 2023 with Genesis!

This year, we’re recognizing and embracing equity. What’s the difference between equality and equity, you ask?

Equality means everyone gets the same resources and opportunities. However, equity goes one step further by acknowledging that each person has unique circumstances and allocates the exact resources and opportunities needed to achieve an equal outcome.

It’s time to ensure that everyone has access to the tools and support necessary to succeed. Join us on March 8th to champion equity for women everywhere!

Today we turn a spotlight on the remarkable women in our portfolio companies who are making a big difference to the business and community:

Giselle Makarachvili, CEO, Hmlet

What does “embracing equity” means to you?

At Hmlet, we’re all about providing fair and equal opportunities for everyone. That means recognizing and valuing each and every talent, and creating a flexible and attractive work environment where everyone can learn, grow, and thrive. We’re on a mission to build a diverse community of people from all walks of life, who can live and work together in harmony. With a team of over 15 nationalities, we’re breaking down borders and collaborating across continents. At Hmlet, we don’t just talk the talk – we walk the walk. “A Home for All” isn’t just a catchy phrase – it’s one of our core values, and we’re committed to living it daily.

What will you do personally to embrace equity this year?

Picture this: a workplace where leaders lead by example, cultivating an inclusive and affirming mindset where everyone’s thoughts are valued and decision-making is judgment-free. That’s the kind of environment I’m committed to creating – where excellence is the norm and people are free to work in the way that brings out their best, while also encouraging teamwork and positive change.

Zhiying Chua, Head of Investments & Projects, Neuron Mobility

What does “embracing equity” means to you?

Embracing equity means investing time to develop empathy and awareness of the biases and circumstances that impact the people around us.

Helen Laura Samantha, HR Manager, Soul Parking

Tell us about the woman whom you admire the most?

Without a doubt, my mom. She’s not just strong, she’s a force of nature. Growing up, she instilled in us the importance of traditional values like respect, good manners, and education, and also encouraged us to be independent, chase our dreams and embrace change. Her unwavering support and guidance have been the backbone of my success, and I am forever grateful to her.

As a practicing Christian, my mom also taught me about faith, empathy, and kindness. She showed me that life doesn’t always go according to plan, but with hard work and determination, I can overcome any obstacle. Plus, she’s always been there to pick me up when I fall, never judging, always guiding. While I am very much my own person, I cannot deny that she has a big influence over my values and principles.

Please share what “embracing equity” means to you in your professional and personal lives?

In my HR role as HR manager for a tech startup solving Indonesia’s traffic challenges, I believe in taking a personalized approach to working with my team. By understanding their strengths and weaknesses, I can provide the specific tools they need to thrive. It’s not about treating everyone the same, it’s about providing individualized support that helps each person reach their full potential.

The same goes for my personal life. By understanding my own needs and priorities, I can focus on achieving my goals and living a fulfilling life.

What will you do to “embrace equity” this year?

Embracing equity means creating a fair and inclusive work environment that supports and values diversity. As an HR professional, it’s my responsibility to educate stakeholders about the importance of equity and provide tangible support like hybrid work arrangements, training programs, and mentorship opportunities.

By doing so, we can create a psychologically safe workplace that fosters high performance and empowers our team to achieve their full potential. In today’s rapidly changing landscape, embracing equity is not just a moral imperative, it’s a strategic advantage that can help us compete and thrive.

Christopher Yap: From Intern to Associate

What does it take to go from a curious intern to an Investment Associate in the dynamic world of venture capital? Meet Christoper Yap.

Chris started as an intern with Genesis in June 2022. He was hired as a full-time investment analyst upon graduation from the Singapore Management University as a Finance and Banking major. Since then, his passion and drive quickly propelled him through the ranks, leading to his promotion to Senior Analyst in July 2024 and, most recently, to Associate in July 2025.

We caught up with Chris to uncover the experiences that have shaped his exciting career journey so far.

Genesis [G]: Hi Chris, please tell us more about yourself.

Chris [C]: I’ve always had a keen interest in finance, investments, and entrepreneurship. My ultimate goal is to be an entrepreneur, starting a company and growing it while helping to improve the lives of others.

Outside of work, I am an avid basketball fan, watching the latest games or classic match-ups of the 1990s. I also enjoy football, golf, hanging out with friends, reading and watching movies, or trying out new experiences and challenges.

[G] At university, you majored in Finance and Banking. What prompted your choice?

[C]: I’ve always been interested in Finance from a young age. I first started investing in stocks in secondary school, and I really enjoyed figuring out the story behind the numbers. Things like: why did a company’s sales improve? How would the macroeconomic environment affect them? What’s their value proposition against competitors? I loved forming my own thesis based on the information I gathered.

The diverse and dynamic nature of Finance was very engaging and exciting to me, allowing me to tap into different skill sets and see the interlink between business, finance, and economics.

[G]: Please describe your typical workday, if there is such a thing!

[C]: There is no such thing as a typical workday! The amount of innovation out there is amazing, especially in the tech industry. It is dynamic and constantly evolving, and there is always something new to learn every day!

The fast-paced environment keeps me constantly engaged, while on slower days, I research emerging industries and technologies, or topics which I am particularly intrigued by, such as Artificial Intelligence (AI), Blockchain, Crypto, Metaverse, or Mixed Reality (XR).

[G]: What was your internship experience like at Genesis and what prompted you to accept the offer of a full-time analyst role?

[C]: I initially joined Genesis with no experience in the venture debt/capital industry. However, the team was very open and willing to guide and mentor me.

Being an intern at Genesis is great if you’re inquisitive and enjoy working in a dynamic and fast-paced environment. As long as you take initiative and ask questions, the seniors—including the Partners—are more than willing to teach you.

Interns have the opportunity to take on higher-level responsibilities, such as being involved in a deal from origination to execution, attending networking events, talking to startup founders, undertaking financial modelling and due diligence, and culminating with a presentation to the Investment Committee (IC) for approval.

Genesis places a strong emphasis on learning and development, where the team members take turns to their experiences, be it during weekly discussions or through masterclasses.

Besides working hard, the team knows how to have fun too! For one of our Bonding Day, we went for a short hike, raced each other in the Luge at Sentosa, and ended off with a durian buffet! When overseas travel opened up, the team went on a trip to Penang, taking in the sights and eating a lot of delicious food.

The dynamic and challenging nature of venture debt investing, coupled with the positive culture at Genesis and the opportunity to further develop myself prompted me to accept the conversion offer and continue my journey with Genesis as a full-time member of the Investment and Portfolio team.

[G]: What advice would you give to undergraduates who are seeking an internship in Genesis or any VC firm?

[C]: There is no defined path into the VC space, and that is what makes it so exciting in my opinion! You will have the opportunity to work with professionals from diverse backgrounds and learn from them. Start developing your soft skills and build meaningful relationships with professionals within the VC ecosystem. You’ll find that most are willing to give advice and share their personal experiences.

The VC space is fast-paced, dynamic, and constantly evolving. This means that an aspiring venture capitalist should be comfortable being uncomfortable, pushing themselves out of their comfort zones, and being able to adapt and work in an unstructured environment.

A strong technical foundation is a good starting point. This includes learning to build financial models, understanding business models, financial statements, valuation, and so on. But it’s just as important to back our technical skills with an inquisitive and open mind, and to dig deeper into the story behind the numbers.

[G]: Finally, congratulations on your promotion to Associate, Chris! How do you feel about this next step in your career at Genesis?

[C]: Thank you for the recognition. I am grateful for the mentorship and guidance from the Partners, and the support from the team who have helped me achieve this milestone. I look forward to continuing to grow and develop myself, striving towards the next milestone in my career.

The technology industry has been one of the most dynamic and fastest-growing sectors of the global economy in recent years. 2022 was a tale of two halves. The first half of the year (and even into Q3) continued on a positive note and benefited greatly from the COVID-induced growth on the user and innovation front. Globally, startups benefitted from the preceding year of funding strength which saw investors plough $621 billion into startups globally, including $20+ billion record funding for Southeast Asia startups.

Towards the second quarter of 2022, we surveyed our portfolio founders on the fundraising environment and business outlook. A clear majority of them were optimistic about the future, observed business growth but were already noticing the slowdown in fundraising. Amidst these uncertainties, three of our portfolio companies Deliveree, Believe, and Trusting Social raised approximately $180 million of funding (April to June 2022).

Source: CB Insights State of Venture 2022 Report

As we rolled Into the second half of 2022, and certainly more towards Q4, a new reality set in for the tech industry clouded by an array of challenges ranging from economic uncertainty, market volatility, geopolitical tensions and reverberating ripples from the pandemic. Venture investors slowed their pace of investing, due diligence took longer, valuations retreated, and we started seeing signed term sheets being delayed or even revoked. Round sizes also began shrinking and later stage startups struggled to raise growth capital while holding on to lofty valuations set during their prior fundraising rounds. Funding for tech companies globally declined to $415 billion, -35% YoY but remained healthy compared to pre-pandemic levels.

According to Carta and as a benchmark on valuation, 22% of US venture-backed companies in the US, both private and public, reduced their valuations in Q3 2022, nearly tripling year-over-year. Meanwhile, as the maxim goes, “flat is the new up” with 34% of companies witnessing a rise in their valuations — the lowest increase in five years.

While the weakening fund raising environment became more evident as the year progressed, robust fundraising in the first half of the year more than compensated for the slowdown in the second half of the year with 887 funding rounds totaling US$28.8 billion in 2022 (compared to $25.7 billion raised in 2021), according to a TechinAsia report.

Referring to a joint DealstreetAsia and Enterprise Singapore report, Singapore-headquartered startups closed 517 deals in the first nine months of 2022 raising $8.11 billion, a little shy of the 487 deals and $8.28 billion raised in the same period of 2021, and with less dealmaking as the year prior.

VCs Prefer Early Stage, Late Stage Deals See Declining Investment Interest

Investment statistics from the earlier report also indicate VC preference towards early stage deals, which are defined as seed through Series B rounds. Late stage are attributed to Series C and above rounds. From the graph below extracted from the DealstreetAsia and EnterpriseSG report, investors have shifted their investment dollars into a larger number of smaller, earlier venture deals. The median size of seed rounds have doubled from $1.2-1.5 million in 2021 to $2.5-3.0 million in 2022. For later stage deals, the report also highlighted a contraction of deal value for Series D and E companies by 30-50%.

In the United States, startups seeking late-stage funding are failing to attract investors as dour sentiment in the public markets and dull exit conditions make it tougher to justify higher valuations. As valuations slip to reasonable levels and startups begin to trim operating expenses to get closer to cash or EBIDTA positive levels, they may once again start to look attractive to venture and PE investors who are keen to deploy their fund capital to work.

M&As & IPOs

We observed a notable rise in private-to-private mergers and acquisitions, as publicly-listed big tech companies saw a steep decline in their share price and valuation which in turn affected the SPAC and IPO listing opportunities. Completed venture-backed acquisitions in the first three quarters of 2022 totalled $81.7 billion, according to PitchBook data, down 40.7%, from $137.8 billion in the same period the year before. No significant venture-backed tech startups went public. In total, IPO deal proceeds plummeted 94% in 2022 — from $155.8 billion to $8.6 billion — according to Ernst & Young IPO report. Looking at 2023, there is an air of optimism that the IPO drought will “un-thaw” and favorable market conditions will return to allow the growing pipeline of IPO filings waiting to list – including Instacart (US), Vinfast (Vietnam), Tiktok (China), Stripe (US) and Epic Games (US).

On the M&A front, Microsoft reportedly acquired Fungible, a Santa Clara maker of data centre chips and storage device for $190m, about $134 million less than Fungible had raised in funding since its launch. Closer to home, according to a Tech in Asia report, Singapore-headquartered Amplify Health – a joint venture between AIA Group and Discovery Group – has announced its acquisition of AI-powered data analytics firm Aida Technologies. GoTo Group, the Indonesia-based tech giant, has acquired Swift Logistics Solutions for 583 billion rupiah (US$38 million).

Cryptopocalypse

A year in review would be incomplete without mention of the events that took place in the crypto space which was rocked by high-profile scandals through the year. Terra Luna for example, a cryptocurrency that was launched in 2019 as a stablecoin pegged to the U.S. dollar, witnessed a crash of its Terra (LUNA) crypto token in May 2022 from $120 to $0.02, a 99.9% correction. Forbes Digital Asset estimated that nearly $60 billion was wiped out of the digital currency space.

Three Arrows Capital (3AC), a crypto hedge fund founded in Singapore and believed to be managing around $10 billion in crypto assets, incurred significant losses due to its staked Luna position. 3AC has since filed for Chapter 15 bankruptcy proceedings in the US Bankruptcy Court for the Southern District of New York to protect its US assets from creditors. And this triggered a contagion of Chapter 11 bankruptcy involving Voyager, BlockFi, Genesis Global and Celsius who had dealings with 3AC. And just before the year ended, the crypto industry experienced a Black Swan event that saw crypto exchange FTX valued at $32 billion based on its most recent funding round declared bankrupt. FTX Exchange was the world’s third largest cryptocurrency exchange specializing in derivatives and leveraged products. News around FTX’s leverage and solvency involving FTX-affiliated trading firm Alameda Research triggered a liquidity crisis when FTX’s customers demanded withdrawals worth $6 billion. FTX Token (FTT) is a utility token that provides access to the FTX trading platform’s features and services. The value of FTT fell by more than 80% within two days. The crypto industry is still reeling from a brutal 2022, having lost over US$2 trillion of its value throughout the year. Crypto companies still managed to raise a total of US$21.3 billion in funding in 2022, down 42.5% from the previous year.

Recalibration in 2023

The general consensus is that 2023 will remain challenged but with green shoots on the horizon. Negative macro conditions are set to continue into 2023 – sustained inflation, raised interest rates, Russia v Ukraine, China-Covid slowdown etc. However, there has also been positive news flow on many of these fronts in the past weeks (e.g. inflation levelling off; China emerging quicker than expected from Covid-slowdown, China tech reawakening etc).

Taken together, and as it relates to the tech industry, it seems 2023 will provide the backdrop for a healthy recalibration period for startups globally. In Southeast Asia, for example, where most founders have not yet experienced a significant market downturn, this has been (and will continue to be) an opportunity for founders to adjust internal KPIs towards a more sustainable growth and fundraising future. Creativity loves constraint and we believe that great startups, with solid fundamentals, will emerge winners in a tight operating and funding environment.

Cash is king. VCs are encouraging their portfolio companies to conserve cash and extend their cash runway into 2024 so as to be able to operate through some of these macro headwinds. To that end, it’s worth noting that the companies in Genesis Fund I Portfolio have a weighted average cash runway of approximately 17 months this quarter (up from 13.5 months in Q3 2022).

Profit before growth. Founders are expected to be more disciplined around spending and investors are edging these startups to turn “profitable”, the definition of which is wide, but in these times has come to prioritise a meaningful and sustainable business model.

Talent stocking. Hiring exceptional talent used to come at a premium but with many startups downsizing, startup founders can now hire more prudently with less pressure on the P&L. In Southeast Asia, it’s been reported that retrenched executives from tech companies (and new job seekers) are actively in the market looking for opportunities but with more modest salary expectations.

Dry powder. Venture firms have continued to raise record capital, even as startups received far less money than they did in 2022. Dry powder was estimated to be as high as $1.3 trillion globally for private equity and $580 billion globally for VC. While we do not expect VCs to invest at a pace comparable to 2021, there is pressure stemming from fund size, duration to deploy and the need to put capital to use. As previous downturns have clearly shown, investors with dry powder will find it a rewarding time to deploy capital, amidst more reasonable valuations and the ability to set better deal terms.

2023 Hot VC Target Sectors

January is a hotbed for new tech innovation unveiled to consumers through the annual Consumer Electronics Show held in Las Vegas USA. The 2023 show is focused on a number of areas, including the metaverse and Web3, digital health, sustainability, automotive and mobility, and human security for all. There was strong participation from Asia which include those from South Korea, which number more than 500 and include the likes of Samsung, SK, Hyundai Motor and LG, while just under 150 exhibitors hail from Taiwan. We highlight some interesting technology showcased at CES:

- Sony teamed up with Honda to exhibit a new brand of electric vehicle called the Afeela. The Afeela logo appears on a narrow screen, or “media bar,” on the vehicle’s front bumper. This can also interact with people outside the vehicle and share information such as the weather or the car’s state of charge. Unlike the car Sony showed off at CES 2020, this car is expected to hit the North American roads in 2026. Japan and Europe will follow.
- The battery-operated WasteShark by the Dutch firm RanMarine Technology is an autonomous surface vessel designed to remove algae, biomass, and floating pollution such as plastics from lakes, ponds, and other coastal waterways. At least 14 million tons of plastic end up in the ocean every year, and plastic makes up 80% of all marine debris found from surface waters to deep-sea sediments. Marine species ingest or are entangled by plastic debris, which causes severe injuries and death.
- Canadian-based eSight Eyewear plans to display a headset designed to help people with visual impairments such as age-related macular degeneration (AMD). AMD is an eye disease that can blur your central vision. It happens when aging causes damage to the macula — the part of the eye that controls sharp, straight-ahead vision. The macula is part of the retina (the light-sensitive tissue at the back of the eye). AMD happens very slowly in some people and faster in others. If you have early AMD, you may not notice vision loss for a long time; hence the importance of regular eye exams. Once the user puts on the device, they will be able to see distinct features such eyebrows, mouth and eyes.
- Singapore-based Igloo Company will show off its second generation of smart padlocks at CES, including a slimmed-down fingerprint-based model and another featuring enterprise-grade security. The latest smart padlocks will ship in the spring. The keypad-based Padlock 2 builds on the company’s original Bluetooth-enabled smart lock by manufacturing it to military standards, including a hardened steel case. The Padlock 2 gets eight months out of a single charge of its lithium battery (the original relied on disposable batteries), and its shackle can withstand up to 15kN of cutting force, 5kN of pulling force, and 100Nm twisting force.
- And last but not least, there has been immense interest in generative AI since ChatGPT came online and mesmerised consumers with its ability to provide real-time chat responses (see below). In 2019, Microsoft invested $1 billion in OpenAI, the tiny San Francisco company that designed ChatGPT. Microsoft is now poised to challenge Big Tech competitors like Google, Amazon and Apple with a technological advantage as it is rumoured to be in talks to invest another $10 billion in OpenAI. See the picture below (right column) where we tested Open AI’s ability to write a short paragraph on electric vehicles. Try it at https://chat.openai.com/chat

More Southeast Asian startup founders to tap venture debt, according to INSEAD and Genesis Alternative Ventures survey

More than 60% of founders would consider using venture debt to raise up to US$5 million each for Series A and B funding
Venture capital firms support venture debt and would recommend portfolio companies to use venture debt

Singapore, 28 December 2022 – More than 60% of Southeast Asian startup founders would consider using venture debt to raise up to US$5 million each, according to a survey by the INSEAD Global Private Equity Initiative (GPEI) and Genesis Alternative Ventures.

Founders would tap venture debt for Series A and Series B funding and would also prefer to raise from specialised venture debt lenders in order to access their networks and future rounds of funding, as well as for their help in building a credit track record.

The latest INSEAD GPEI and Genesis survey found that almost all startup founders polled had heard of venture debt, but only 27% have used it. Most of the venture capital (VC) firms surveyed, however, have recommended venture debt to their portfolio companies in the past two years and will continue to do so. About 82% of VC firms’ portfolios have used venture debt, and going forward most of the VC firms surveyed would recommend venture debt to their portfolio companies.

On the investor side, the study found that in the current environment of rising interest rates, investors prefer the yield and risk profile of venture debt.

The respondents were mainly from enterprisetech, healthtech and fintech companies in Southeast Asia.

The survey covered a total of 94 VC firms, startup founders and investors, and was carried out between 8 July to 1 August 2022.

The findings come as more startups in Southeast Asia have turned to debt financing given declining valuations. They have closed at least 15 financing deals totalling US$819 million in the third quarter of 2022, or just over half of the debt raised since the start of 2022.

Vikas Aggarwal, Academic Director of the INSEAD Global Private Equity Initiative and Associate Professor of Entrepreneurship and Family Enterprise at INSEAD, said: “Venture debt plays a critical role in the ecosystem of entrepreneurial finance, and has become increasingly important to startups in Southeast Asia in recent years.”

Dr Jeremy Loh, Co-Founder and Managing Partner of Genesis Alternative Ventures, said: “Our latest survey with INSEAD offers hope that startup founders will continue to view venture debt as a useful and necessary source of funding, complimentary to venture equity.

Genesis was founded by Mr Ben J Benjamin, Dr Jeremy Loh and Mr Martin Tang in 2019, to support early-stage growth companies in scaling up while minimising dilution in founders’ shareholdings.

The report of the survey can be downloaded here.

About INSEAD, The Business School for the World

As one of the world’s leading and largest graduate business schools, INSEAD brings together people, cultures and ideas to develop responsible leaders who transform business and society. Our research, teaching and partnerships reflect this global perspective and cultural diversity.

With locations in Europe (France), Asia (Singapore), the Middle East (Abu Dhabi) and now North America (San Francisco), INSEAD’s business education and research spans four regions. Our 165 renowned Faculty members from 42 countries inspire more than 1,500 degree participants annually in our Master in Management, MBA, Global Executive MBA, Specialised Master’s degrees (Executive Master in Finance and Executive Master in Change) and PhD programmes. In addition, more than 11,000 executives participate in INSEAD Executive Education programmes each year.

For more information, visit www.insead.edu.

About INSEAD Global Private Equity Initiative (GPEI)

The Global Private Equity Initiative (GPEI) is INSEADʼs private capital think tank which works hand-in-hand with private equity and venture capital firms, institutional investors and governments around the world to foster entrepreneurial ecosystems. It connects companies and entrepreneurs with the right sources of capital for their stage of development. GPEI covers research topics ranging from early-stage venture capital to growth equity to buyouts of mature businesses. For more information, visit www.insead.edu/gpei.

About Genesis Alternative Ventures

Genesis Alternative Ventures is Southeast Asia’s leading private lender to venture and growth stage companies funded by tier-one VCs. Genesis is a trusted partner in empowering corporate growth while minimising shareholders’ equity dilution. Genesis is founded by a team of venture lending pioneers who have backed some of Southeast Asia’s best-loved companies. Genesis was founded by Ben J Benjamin, Dr Jeremy Loh and Martin Tang in 2019.

For more information, visit www.genesisventures.co.

For media queries, please contact:

Catherine Ong Associates

Catherine Ong

Mobile: (65) 9697 0007

Email: cath@catherineong.com

Joel Ng

Mobile: (65) 9873 5728

Email: joel@catherineong.com

The ambition of any startup was to become a unicorn. However, with the recent battering of the financial markets and the looming threat of a 2023 global recession, the pendulum of venture financing has swung from feast to famine.

Startups in Southeast Asia have not been spared from the “perfect storm”. Gone are the days when venture funding was readily available for “growth at all costs.” Instead, investors have been tightening their purse strings and prioritizing strong unit economics, sustainable growth, and conserving cash. Therefore it is not surprising that Founders are feeling anxious and looking for alternative sources of financing.

To explore the ecosystem’s perceptions of such an alternative financing instrument, venture debt, INSEAD GPEI collaborated with Genesis Alternative Ventures to survey founders, venture capital firms, and investors.

Read our whitepaper here: Click to download

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