Evolving The Digital Wave in the Start-up Space

Jeremy Loh, Co-Founder And Managing Partner, Genesis Alternative Ventures

Jeremy Loh, Co-Founder And Managing Partner, Genesis Alternative Ventures

Jeremy Loh is a pioneer of venture debt investing in Southeast Asia. A seasoned investor with 13 years of experience in the venture debt and venture equity ecosystem across the US, Europe, and Southeast Asia, Jeremy has handled more than 200million dollars in equity and debt investments.

Jeremy started his investing career with EDBI, Singapore’s Economic Development Board Investments, in 2007, where he was part of the healthcare investment team and eventually overseeing the firm’s US operations based in Silicon Valley California. He subsequently joined DBS Bank in 2015 to create a venture debt financing business before starting Genesis Alternative Ventures in 2018, Southeast Asia’s inaugural private venture debt fund. In conversation with StartupCity Magazine, Jeremy Loh discusses the challenges and trends impacting the startup space and how digitalization can be leveraged for better efficacy.

Can you brief on the current status of the startup landscape in South East Asia and how they have evolved over the years?

Compared to the US or Europe, the startup landscape in Southeast Asia is fairly young, even though it’s maturing rapidly. What has really taken off in the last ten years or so is the venture capital (VC) funding that came into this part of the world. VCs began funding innovative ideas and backing the first generation of young founders who were replicating business models across the globe.

What are some of the advantages of the current technological evolution, and how has this benefited the startup industry?

The technological evolution has enabled the entire ecosystem, from the startups creating solutions to the end consumers and the corporates adopting and embracing digital solutions.

The pandemic has also created a mindset shift of the end customers, both corporates and consumers, who were unprepared for the sudden transition, to adopt the digital wave at a more aggressive pace. Symbiotically, digitalization has also provided a tailwind momentum for the startups to deal with the pandemic.

What are the challenges in the startup space, and how can they be effectively mitigated?

One of the most significant issues in the startup space is talent. It is a challenge that’s plaguing the startup landscape around the world as there is a heightened demand of talent skillsets from engineering and finance to data analytics, AI, and ML. The educational system has yet to catch up with the evolving market, struggling to produce enough graduates or train workers in those skillsets. With more tech startups created, the demand for matching skillsets has gone up, and the talent gap is widening.

What do you anticipate for the future in the startup space?

It is an exciting time for the startup space. We see startups growing from small businesses to achieving unicorn status, employing thousands of people. There has been an acclerated digital transformation movement and with the pandemic, we are not going to move back into the ‘good old days’. Instead, we are looking forward to the future wherein digital is no longer a good-to-have but a must-have.

Venture capital or private equity funds now want to get their investee companies to become more cash efficient and cash flow positive at the earliest, to turn them into profitable businesses

What are some of the best practices businesses should adopt to steer ahead of their competitors?

There is a trend towards moving away from unsustainable losses attributed to winning market share from competitors. Today, startups are gearing towards cash flow positive sooner and turn into profitable businesses. Entrepreneurs need to balance out how to convince new customers to buy their products and services and reduce the cost of acquiring a customer by retaining them longer.

A piece of advice for budding entrepreneurs and start-up owners?

I come from an investing and corporate background, and starting my own fund was an eye-opening moment for me. It’s not easy to jump into entrepreneurship, and I really admire the gritty founders and entrepreneurs who have done so. Some of them have been successful the first time around, but many others have failed but will keep trying. So for those who are planning to venture into the startup space, be prepared for a windy path that is filled with lots of unknowns and learning opportunities. My advice to budding entrepreneurs is that failure does not signal the end of the road. They have to roll up their sleeves, get the ideas out, raise some money and keep with the process till they succeed.