Kurt Tanyu of NSI Ventures
Kurt Tanyu
1. Please explain about NSI Ventures. What's the story
behind?
How do you differentiate with other VCs?
NSI Ventures is a US$90
million Series A/B fund focused solely on early-stage Southeast Asia tech
companies. Back in 2013, its founding partners Hian Goh, who previously ran the
Asian Food Channel, and Shane Chesson, who headed the technology investment
banking practice for Citigroup Asia-Pacific, saw the need to fix the Series A
void in Southeast Asia and professionalize venture capital. Before NSI Ventures
was founded, there were very few Series A and Series B specialists in the
region as there was not enough quality and quantity of tech companies emerging
in the region.
But several data points
suggested an active ecosystem that will continue to grow in the next few years.
One factor is that Southeast Asia has always demonstrated strong fundamentals
when it comes to mobile and Internet penetration rates, disposable incomes,
etc. These are further supported by studies conducted by Temasek
and Google. The other factor that helped many
countries outside Singapore (who benefitted from strong government support,
attracting both local and foreign entrepreneurs) was the influx of returnees – individuals
who have had education or work experiences abroad and decided to come back to
Indonesia, Vietnam, the Philippines and Myanmar.
The combination of
these factors has delivered several success stories we see today, including
Go-Jek (which is also our portfolio company), Garena, Grab – companies that
have reached the unicorn status.
But to achieve that status is no easy feat.
Hian and Shane always believed that companies would need a high-touch venture
capital partner to achieve their fullest potentials. At NSI, we have a full-time
operational team that helps with the companies’ HR, tech, strategy, fundraising
and other needs. We are also backed by a private equity platform called Northstar, which has over US$2 billion assets under management,
which gives us access to several resources in the region.
2.
Please explain about your life story before NSI
Ventures.
My formative years (15 years) were spent in
the Philippines until I was given an opportunity to further my education in
Singapore. At a young age, I had a handful of side projects, including
reselling MP3 players and giving academic tutorials for profit. It dawned upon
me that starting a new business (especially with a completely new idea) is extremely
challenging yet also fulfilling in some ways.
Given my fascination for math and technology
breakthroughs (I grew up at a time when Apple, Google and Facebook rose to
popularity), I initially majored in engineering. However, I eventually ended up
doing economics while getting my hands dirty with a handful of entrepreneurial
projects in school. I also had other side projects including running the first
few Model UN conferences in Singapore (which are now becoming popular) and
organizing community-initiated runs together with my friends.
As you can tell, I always enjoyed doing
something new and seeing it grow. Thus, it was only natural that I joined NSI
as I wanted more of these but only more real – companies with strong ambition
to offer innovative solutions with technology as their core.
3. What is the investment criteria of NSI Ventures?
We
typically write US$3-5 million checks. So if you work backwards, we would
invest in companies that have already demonstrated some strong early traction
and capital is needed to drive rapid growth. Achieving strong early traction is
a function of a solid team and strong product-market fit – things that are rare
in the region but if we find one, we would definitely love to back, especially
in the Philippines where we have yet to make an investment.
4. What is the common mistakes of early stage
entrepreneur? How can they avoid?
I’m not an entrepreneur
myself so I don’t think I’m the best person to understand their pains. But one
of the things I noticed from my vantage point is how an entrepreneur should
transition his role as his company goes into the hypergrowth mode. Founders in
this position would need to rely on the expertise of trusted colleagues instead
to head the different key functions of the company. Y Combinator has written a
good article on this, and the best way to avoid this is to be cognizant of
these transitions as the company grows.
5.
Which one is your favorite portfolio company? Why?
It’s
hard to pinpoint one favorite portfolio company as all our portfolio companies
are addressing very interesting problems and have unique solutions to address
them. From apps that address market inefficiencies like Go-Jek
and Chope
(restaurant booking platform and discovery), we also have companies address
regional and global enterprise issues such as Whispir
(enterprise communications), TradeGecko (inventory management) and CXA (health
benefits platform). I would recommend visiting our website to find out
more!
6. What is the challenge of NSI Ventures at this
moment?
One of the daily
challenges we have at NSI Ventures is that our companies are growing fast and
as hands-on investors, we always find ourselves busy with the day-to-day issues
faced by our companies. Although some may view this as challenging, we have
always been passionate in walking the journey together with our portfolio
companies as they go and realize their next phase of growth.
7.
What is the most important factor to be successful
entrepreneur?
Personally, I think the most important factor
for an entrepreneur to be successful is to have the grit to go through several
challenges in his journey. Although as high-touch investors we have always been
ready to work with our portfolio companies with their issues and build
all-terrain vehicles, entrepreneurship can be lonely at times. A strong
tenacity against these problems will go a long way to getting through to the
finish lines. I just finished reading
the Nike co-founder Phil Knight’s book Shoe Dog, and his story gives a very
interesting perspective on how he did all these.
8. What is your view on Startup ecosystem in the
Philippines? What will happen in next 5 years?
The
Philippine start-up ecosystem is exciting given it has the right fundamentals
in place. We have definitely seen a marked increase in the quality and quantity
of start-ups in the country and continue to keep ourselves updated with what’s
happening on the ground.
It’s
hard to tell what’s going to happen exactly in the next five years, but we are
already seeing early signs of a maturing ecosystem, similar to that of
Indonesia and Vietnam. While consumer-oriented companies like e-commerce will
grow well on the back of a hundred plus million population, themes such as
education, healthcare and banking & finance will be particularly exciting
given the limited reach of existing infrastructures.
There’s
also some potential with B2B companies in the Philippines given the country’s
BPO heritage, but the country would benefit more would with a larger tech
talent base and the means to make this happen.
You can check the website of NSI Ventures HERE.
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