No crypto for old men? – The Executive Brief

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Hello reader,

Remember when teenagers ruled social media and adults always bemoaned how it was a waste of time? Last week, my grandfather excitedly showed me a meme of a bear trying to high five a man in a car, while its bear friends looked on.

It took me years to convince my grandfather to join social media, but it’s worked out for the better (I guess). But as older generations finally come to grips with a decade-old pastime, the kids have moved on to something more mysterious: the blockchain.

Tech VCs in Southeast Asia face the same generational hurdle in embracing the latest craze among millennials and Gen Z. 

Despite the saviness of these investors, finding a way to put their money behind this disruptive phenomenon is a big ask. Traditional VC firms are playing it safe for now because backing crypto firms demands a different skill set and expectations. Add some regulatory uncertainty to that mix, and it’s clear to see why VC firms aren’t quite ready to dive into the deep end yet.

Meanwhile, crypto firms are keener on bringing in investors who have extensive connections within the crypto ecosystem, which might not be the strongest suit of typical VCs.

My colleague Ardi recently unpacked why blockchain players are struggling to win investor confidence. And while traditional VC firms are still wrapping their heads around the blockchain, crypto-native investors already have a game plan.

Today we look at:

• The limited participation of SEA’s tech VCs in the crypto race
• How a VC firm backed by Bukalapak’s founders has bet on an Indonesian fintech startup that could be the next game changer
• Other newsy highlights such as Binance’s media gambit and a Singapore-based VC’s first fund.

Premium summary

Crypto VCs built different

Image credit: Timmy Loen

Though they are few in number, crypto VCs are playing the investment game on a different level. Like college grads, these firms host “party rounds,” where a bunch of investors take part but often don’t have a lead backer. These rounds are much smaller than what typical tech VCs in Southeast Asia are used to, and they don’t come with the same kinds of exits either. 

All these factors have made traditional VCs cautious about going all-in with crypto-based projects. Tech VCs have their work cut out for them to gain the trust of crypto founders, but that effort may be necessary to ensure that the industry will grow “beyond the crypto bubble.” 

Good to be in fintech, innit?