After years of cheap capital and frothy valuations, Southeast Asia’s startup ecosystem is now in its first real reset. On this week’s 60/40, Vertex Ventures CEO Kee Lock Chua unpacks the hard lessons for founders, VCs, and LPs, from the curse of excess capital and weak DPI to why discipline, not hype, will define the next cycle.
Chua doesn’t mince words: LPs helped fuel the boom, inexperienced funds chased growth at any cost, and founders stretched the truth just to survive.
Yet he’s pragmatic – Chua says that downturns are cyclical, AI may offer new opportunities, and in eight to 10 years the region may repeat the same mistakes. The real question is whether this generation of builders and backers will remember the lessons long enough to do better.
Check out the full episode on your favorite platform: YouTube | Spotify | Apple Podcasts.
Timestamps
00:00 – The curse of excessive capital
02:25 – The current state of Southeast Asia’s startup ecosystem
06:09 – Challenges in fundraising for VCs
10:14 – The role of LPs in venture capital
13:09 – Assessing founders beyond their abilities
18:09 – Learning from failure
22:20 – The learning curve of entrepreneurship
26:14 – Navigating the VC ecosystem’s challenges
29:07 – The impact of scandals on LP perception
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