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Hi readers,
The renowned actor, comedian, and filmmaker Charlie Chaplin once said “Life is a tragedy when seen in close-up, but a comedy in long-shot.”
This is a philosophy that I have come to use in dealing with tough circumstances in life, and it probably would help relieve the paralyzing anxiety that often hinders us from taking action.
I realize that many founders in the startup ecosystem today are between a rock and hard place. As the funding winter continues unabated this year, many founders are nearing the end of their runway and faced with a tough decision about the future of their startups: Should they sell for scraps or shutter?
So, in a recent piece, I explored if there’s another option out there for founders to save their startups? It led me to finding new non-VC investors emerging across Southeast Asia.
Taking advantage of the plummeting valuations of startups, these investors – typically called turnaround funds – aim to get a majority stake in targeted firms, mold them into profitable businesses, and then seek quick exits via acquisitions or public listings.
An example of this is Singapore-based Turn Capital, which acquired Flash Coffee’s Thai business last November.
Another type of investor on the block is the search fund, which allows aspiring entrepreneurs to locate, acquire, and grow small businesses, usually using investor money.
That said, I found out that turning around a business is no easy feat even for these investors. In addition, this piece explores if we will see the growth of such alternative startup investors in Southeast Asia.
— Collin Furtado, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. New investors eye SEA startups seeking lifeline, but there’s a catch
As valuations fall and runways shrink, a new wave of investors in the region is eager to acquire and assume control of startups.
2. Mapping the Indonesian fintech players navigating a tech winter
Between 2021 and 2023, the payments, lending, brokerage, and insurtech segments attracted the most money for the country’s fintech industry.
Founders Meetup is coming to Vietnam as part of the official closing party of Saigon Summit
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