This Philippines-based VC eyes $25m SEA fund to target startups with ‘can do’ spirit

“Ideas are cheap. It’s really all about the execution and how those are brought to life,” says Paulo Campos, managing general partner at Kaya Founders. “This [often] makes it disproportionately about the founder.”

Campos, who was co-founder and former CEO of fashion ecommerce platform Zalora Philippines, was talking to Tech in Asia about what his VC firm looks for in startups.

While there’s a basic level of competence necessary, Kaya Founders also gauges the founder’s motivation and their commitment to devote the next five to 10 years of their lives to the startup.

Kaya’s general partners (from left) Ray Alimurung, Paulo Campos III, Lisa Gokongwei-Cheng / Photo credit: Kaya Founders

“Beyond that, what separates the founders who can really show progress versus those who just look good on paper are the founders who are able to show growth and learning from each touchpoint to the next,” explains Campos.

With these requirements in mind, Kaya Founders aspires to be “the first institutional port of call for any founder with an idea.” The firm has been investing in Southeast Asia for the past two years, pouring the majority of its funding in the Philippines.

Kaya Founders recently announced the first close of its second fund and is targeting to raise US$25 million.

Betting on the kaya spirit 💪

In Filpino, kaya means “can do,” shares Campos. The word embodies the same type of spirit that the firm looks for in entrepreneurs.

The firm’s investment vehicle is split into two parts, one of which is the Zero to One fund. This invests in the idea, pre-revenue, or pre-product stage – on “day zero,” in other words. Campos describes the fund as a “US$5 million vehicle that will invest US$150,000 checks at the idea stage.”

“In some cases, the founders who fall into this category [of startup stages] wouldn’t even have left their jobs yet. They might still be waiting for validation of their ideas before they take the plunge,” he adds. “Part of our job is to convince these high-potential founders to become founders.”

On the other hand, the flagship One to Ten fund will invest US$250,000 to US$500,000 into each startup, but “with significant reserves to be able to also invest in future rounds with startups that are able to show traction coming out of the seed to series A stage,” says Campos.

A sum of its parts
Active since: 2021
General partners: Ray Alimurung, Paulo Campos III, Lisa Gokongwei-Cheng
Expected fund size: US$25 million
Invests in: Sector-agnostic
Portfolio firms: Etaily, Kindred, Semaai, PayMongo, Pilon, and more
Headquarters: Philippines
Areas covered: Southeast Asia

I spy with my VC eye 🔮