For this VC, Asia’s proptech sector is a good place to land

In the past decade, proptech startups offering various services and solutions have emerged in Southeast Asia. One of the most notable players in the sector is Singapore-based PropertyGuru, which went public in March 2022.

However, proptech development in the region still lags behind the US and Europe. This was one of the reasons why Feedback Ventures chose to specialize in this sector.

Its co-founders, Ethan Cheng and Xin Xin Loh, have 15 years of experience in the real estate industry. Cheng previously served as the head of the Abu Dhabi Investment Authority’s proptech division.

Feedback Ventures co-founders Xin Xin Loh (left) and Ethan Cheng / Photo credit: Feedback Ventures

Feedback Ventures made its first investment in 2021, but its license to conduct VC fund management activities was not approved until mid-2022, Cheng tells Tech in Asia. The Singapore-based firm’s first fund was then registered in December 2022.

It focuses on early-stage investments and has invested in nine proptech and hospitality companies in Asia to date, including Pinhome in Indonesia, Uwi in the Philippines, Homebase in Vietnam, and SensorFlow in Singapore. While Cheng didn’t disclose the first fund’s size, he said the company aims to back 15 to 20 startups.

“As a seed investor, we really focus on the qualitative metrics of the founding team. We lean heavily towards founders and their ability to create something great,” explains Cheng.

He added that “seed investors have to depend on instinct and character judgment” in absence of other indicators, which only show up in the later stages.

In a Q&A with Tech in Asia, Cheng talked about the firm’s plans and his views on the proptech sector in Asia Pacific. Below is our conversation, which has been edited for clarity and brevity:

Why does Feedback Ventures focus on real estate?

Cheng: Not only has real estate gone unnoticed by VC firms in Asia Pacific, but the sector is a lot larger and more dynamic than most people realize. In other parts of the world, proptech is among the top 10 verticals for investors, along with fintech, biotech. and energy. Outside of APAC, there are more than 60 VCs focused on proptech.

We don’t see that focus in APAC, and that’s probably to the detriment of proptech startups in the region. They would greatly benefit from strategic investors that can help them grow and navigate the industry.

Proptech investments in APAC are usually made by generalist investors who haven’t accumulated resources or expertise in the space, limiting the value that they can deliver. There are also real estate groups or family offices that may only deliver value within the silo of their business interests.

We seek to be a trusted partner that can help startups navigate the entire value chain.