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Hello reader,
A smartwatch and a photobook that explores the history of Hong Kong’s Kowloon Walled City (Greg Girard’s City of Darkness Revisited, in case someone out there is feeling generous and wants to be my Santa) have been on my wishlist for ages, but I don’t know if I’ll ever get around to actually purchasing them.
There are two reasons for this. First, I’m low-key thrifty. Second, my necessary expenses have never dwindled enough so I could spare a couple hundred dollars. Those two items seem doomed to languish forever in my “nice to have” list since I might never be able to bring myself to spend on them.
In today’s premium article, Brian Dy, Kickstart Ventures’ head of research, says pretty much the same thing about the current economy, pointing out how startups that cater to discretionary spending are likely to be hit hard. Read on to find out what else he has to say about the tech winter.
Today we look at:
- How Kickstart Ventures is planning to navigate the economic downturn
- A Dubai-based investing platform’s US$20 million series A round
- Other newsy highlights such as the third-quarter financials of giants Grab and Tencent
Premium summary
Investing in solving real-world problems
Image credit: Timmy Loen
The most trite investment advice is “buy low, sell high,” but sometimes cliches exist for a reason. That might be why Kickstart Ventures is actually planning to deploy more funds in 2023 than this year – yes, even amid the current economic climate.
Dy says that the firm is looking at the long term and real-world concerns – it is particularly optimistic about the digitalization, decarbonization, and decentralization verticals.
- Needs, not wants: According to Dy, startups that cater to discretionary spending – such as those in travel and leisure, real estate, construction, and high-end retail – are likely to feel the impact of the macroeconomic headwinds.
- 3D: Kickstart Ventures continues to be upbeat on digitalization, decarbonization, and decentralization. On decarbonization, Dy notes that “natural calamities strike regardless of economic cycles, so the need for investment in climate tech startups will endure.”
- Advice for founders: Apart from focusing on unit economics, startups should grow their existing customer base, advises Dy. It generally costs less to do so and will result in healthier margins.
Read more: Recession Run: Kickstart Ventures to deploy more funding in 2023
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