We are putting the spotlight on NEXEA, which comprises of a venture capital, startup growth accelerator, and angel investor network. They operate in Southeast Asia, with particular focus in Malaysia, focussing on startups in Seed to Series A stages (connect with NEXEA).
Ben Lim, Managing Director of NEXEA, answered a few of our questions about the startups they’re looking for, what makes them stand out, and what makes Southeast Asia startup ecosystem both challenging and exciting.
On how NEXEA was born
We established NEXEA about six years ago. At that time, a few of us exited. So partly, it’s fresh capital and we wanted to invest it somewhere. But partly also, at the time, I was looking for something to start, and one of the ideas that I wrote down was actually angel investment work. Then we added on our accelerator and our other programmes as well. It sort of grew from there.
On being more than just funding
We came from entrepreneurial backgrounds. That’s one of the key differences. We kind of intuitively understood startup entrepreneurs from the start and that’s why we have programmes like the Entrepreneurs Programme. That’s why our accelerator focus so much on adding value to the startups.
On NEXEA’s edge vs others
Definitely our mentors. They are ex-entrepreneurs, people who have exited already. They are on the board of listed companies and have grown companies from nothing into regional market leaders. So, they really understand building startups and, at the same time, how to guide the newer entrepreneurs because they’ve actually been through the journey. It’s like learning from an Olympic champion; it’s different from a lot of the other coaches and mentors out there that have not been successful themselves.
On being sector agnostic
It’s just not possible to look at one specific industry or sector in this region. So far, I think you will find too few companies to invest in if you just looked into, let’s say, purely fintech. It doesn’t make enough sense. So we look at all sectors.
And what we really do is we try to find the best in every sector – every pocket of sectors- because we also have an advantage there versus other VCs that, let’s say, only have a fintech background: we have many mentors, many investors that are from various backgrounds and they are all experts in their own industries. So, we sort of have that advantage over a lot of other funds. And because of that, we are able to focus in many sectors and we do varying degrees of investments as well.
On the kind of startups NEXEA is looking for
We are looking for ideas that could really change the way certain industries work. If your startup is, for example, using an underlying technology that can change a certain industry or sector, we are really interested in opportunities like that. If you’re able to leverage a new form of technology that will disrupt a certain industry, that’s the kind of growth potential we’re looking for.
On what they’re really looking at
We find that the main factors of success will be the team, the market, and maybe even the business model. Specifically, we look for great potential in the team itself and hope they can go really far and bring the company really far, because it’s not easy finding people to replace them as well.
On the huge impact of a founder’s attitude
When we are asking all kinds of questions about the business, we are actually watching the attitude of the founders. How do they answer it? Do they think deep enough? Are they actually humble or can they be humble? It’s okay to be a little bit cocky, right? If you’re good, you tend to be. But if you don’t know how to stay humble, that’s gonna be a big issue.
Because not being able to stay humble, basically means that you’re not able to learn. You’re not able to take in some of life’s greatest lessons, and into a person that the company needs over time. And we believe so because the level of a company heavily depends on the on the level of the founder itself. If the founder stops growing at a certain point, so does the company.
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On why being in Southeast Asia is both a challenge and a huge opportunity
A lot of the region is still developing. And in that sense, the ecosystems themselves are developing to various degrees in each country. One of the key differences between Southeast Asia and Europe, for example, is that Europe has a slightly more unified system. For example, they have a single currency and alone that enables a lot of things even if each country may have its own culture and nuances.
In Southeast Asia, it’s all different currencies. Every country in Southeast Asia has its own different challenges so every government has its role to play in growing on its own. Southeast Asia is a much more challenging market to break into; it’s as if you’re breaking into six different countries rather than one unified market. And it’s a natural barrier for entrance from China, US, and even Europe. They would love to come here, but they know how challenging it is to go into a single country – forget about six. It’s usually the Southeast Asian guys that can build companies in Southeast Asia. So, a lot of times these companies from outside the region will look at acquisition instead. And that’s a good thing for us and that’s going to be a key driver in the success of this ecosystem, so we just got to play our strengths there.
Speaking of strengths, on NEXEA’s
I feel that we are better able to support B2B startups, naturally, because we also work with quite a number of corporates. A lot of these corporates are looking for companies that can that help them digitise or help them be more efficient. They’re also looking for B2B startups that they could potentially invest in or acquire in the long term. Because of that, we somehow naturally have better capabilities in supporting B2B startups and helping them to grow much faster than normal.
On what could make them say to startups “yes, let’s talk some more.”
Very simple: it’s the pitch deck. On our site, we even have a template for that. And it’s as simple as that. What we need is already in the pitch, so as long as startups can show that and show it clearly and concisely, that will really get a message across to us and we will try and reply to every single one.
On why startups should connect with NEXEA
If they’re looking for investors that can add value to the startup through mentoring – and again, these people have very deep entrepreneurial and even C-level backgrounds – then this is the perfect place to look for investment with mentoring on how to really grow their businesses.
NEXEA is verified investor on the e27 platform. Startups with e27 Pro memberships can connect directly with NEXEA by visiting their profile and clicking Connect.
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