Vulpes Ventures: A Venture Capital Firm with a Global Vision

Vulpes Ventures, a subsidiary of the globally present investment group Vulpes Investment Management, is a Singapore-based corporate venture capital firm. Its primary focus lies in making early-stage investments in technology-driven companies, with specific emphasis on fintech, artificial intelligence, foodtech, and digital health sectors. Some examples include Flash Coffee, Chope, Cloudeats, and Aqwire. The core objective of Vulpes Ventures is to assist startups in expanding their operations and attaining sustainable success in the long run. Besides funding, some of these include: networking, access to industry expertise, and mentorship and guidance among many others. With that, why don't you join me in learning more about Vulpes Ventures with its Investment Associate, May Myat Noe Oo.

As a banking and finance graduate, can you tell us how your journey led you to work at Vulpes Ventures? 

Growing up, I was always curious about how businesses and investments worked. This fuelled my interest in working in the investment sector. After graduating, I actively searched for job opportunities in the industry, and very interestingly, during one of the networking events, someone mentioned to me that there was a very interesting internship at Vulpes Ventures, which I jumped right into. 

My career in VC had an unconventional start which I found unique and some somewhat amusing experience as my internship extended into 2020, which coincided with the outbreak of the COVID-19 pandemic. Working from home was a very foreign concept, and although I worked closely with the team on the newly launched fund, I did not meet the team in person until months into the role! All in all, it was a steep learning curve that was made more challenging due to covid, but the main lesson I learned was that networking is very important!

What sets Vulpes Ventures apart from other venture capital firms? Can you provide an overview of Vulpes Ventures and its investment strategies?

Vulpes has over 20 years of history of adopting a contrarian approach to investing in Southeast Asia and has hedge fund DNA deeply embedded in us. Initially known as Artradis, one of the largest hedge funds in Southeast Asia, we transitioned to Vulpes Investment Management in 2011 after successfully returning over $3 billion to our investors. As an alternative investment manager, we diversify our investments across various sectors, including Life Sciences, German real estate, and Agriculture. 

In 2020, we introduced Vulpes Ventures, along with our inaugural fund, the 'Vulpes Special Opportunities Fund,' which focuses on investing in venture-backed companies and adapting to the changing landscape influenced by COVID-19 and in 2021, we launched a larger fund with a similar mandate to the first. What sets us apart is our flexible and open approach to investment opportunities. We don't confine ourselves to rigid parameters but instead, maintain a broad perspective. While we primarily concentrate on Southeast Asia, Australia, and New Zealand, a portion of our funds extends beyond the APAC region, including investments in Israel, Europe, and the Middle East. Moreover, we are sector-agnostic, allowing us to explore a wide range of industries. This approach ensures that we capture diverse opportunities and provide our investors with a well-rounded portfolio.

What stage of companies does Vulpes Ventures typically invest in? What industries and sectors do you target? 

Vulpes Ventures typically invests in companies ranging from Seed to Series B, with a particular focus on Series A stage companies. We maintain a sector-agnostic approach, meaning we are open to exploring opportunities in any industry. Over the past 36 months, we have made 53 investments across different regions and sectors. If we were to categorize our investments by industry sector, the majority would fall into F&B, fintech, and Enterprise SaaS. In terms of stage, a significant portion of our investments has been in the Series A stage. Geographically, our investments are primarily concentrated in three regions: Southeast Asia, the Oceania region, and the rest of the world. 

What criteria do you use to assess the potential of a startup? What qualities or factors do you look for in entrepreneurs and founding teams?

When assessing the potential of a startup, Vulpes Ventures utilizes six different segments in our evaluation blueprint: Quality of the team, market opportunity, scalability, defensibility, business model, and the deal. The first criterion we focus on is the quality of the team. We look at the diversity, skills, and relationships among the founders, co-founders, and board members. We assess the different qualities and experience that the founding team brings and if the founding team has a strong and cohesive dynamic that can lead to the success of the startups. 

We carefully analyze the market opportunity, considering the size of the addressable market, the startup's current traction, and its potential for vertical expansion. We also assess the scalability of the business, looking at its ability to grow beyond borders while maintaining long-term profitability and fostering customer loyalty and a strong brand presence. Another important aspect we consider is defensibility, which includes evaluating the uniqueness of the startup's technology and its competitive positioning in the market. Additionally, we examine the startup's business model, assessing the growth and profitability strategies they employ and their operational capabilities in effectively managing various stakeholders. Finally, our evaluation process includes assessing the deal structure and accessing the fair pricing of the round and the investors on the Captable. 

Can you share some successful Philippines-based investments that Vulpes Ventures has made in the past and how they have performed?

In the Philippines, we have made investments in CloudEats, Peddlr, and Aqwire, all of which are showing promising growth in the emerging startup ecosystem.

CloudEats, a pioneer in the cloud restaurant company founded by Kimberly Yao and Iacopo Rovere. It takes a multi brand strategy approach with over 50+ brands under its umbrella. The team has now successfully expanded across the Philippines and into a new territory, Vietnam as well. They are hitting an all-time high in terms of order volume with improving margins. They have recently been selected by the World Economic Forum for the 2023 technology pioneer, which includes innovative companies and entrepreneurs who are at the forefront of technological innovations and have the potential to make a significant impact on their respective industries and society.

Next, Peddlr, founded by Nel Laygo and Aiko Reyes, offers essential business intelligence tools, including inventory management solutions and financial insights for SMEs, enabling them to transition into online businesses, enhancing customer service, and competing with hyper supermarkets. Peddlr has made a significant impact in the industry, serving over 200,000 SMEs. Recently, they have successfully begun monetizing their services.

Finally, Aqwire, founded by Ray Edison Refundo, Jesse Manalansan, and Earvin Ang, offers specialized payment solutions for large real estate enterprises and developers, simplifying the collection and settlement of payments from around the world. With a significant community of Filipinos working abroad, Aqwire provides a trusted platform for settling mortgage and bill payments. They have successfully onboarded the largest real estate developers and established partnerships with top agents in the market.

Does Vulpes Ventures have any plans in the near future? 

We are in the process of fundraising for our third fund. Our investment approach will remain flexible, with a primary focus on Southeast Asia, Australia, and New Zealand. Additionally, we will be taking more action to support strong female founders in the APAC region. We recognize the importance of closing the gender funding gap and are committed to contributing to this cause by empowering them and creating a more inclusive and equitable startup ecosystem. We strongly believe that diverse perspectives and voices are essential for driving innovation and unlocking the full potential of the entrepreneurial landscape.

May Myat Noe Oo is an Investment Associate of Vulpes Ventures, responsible for sourcing investment opportunities and managing early-stage and growth-stage portfolio companies by providing strategic guidance and support. Her ultimate goal is to drive the growth and unlock opportunities of promising startups, dedicated to fuelling their success in the Southeast Asia and Oceania region. Prior to joining Vulpes, May was the founder of Project Book Valley, a non-profit organization that focused on making education accessible in rural Myanmar and worked with numerous NGOs in Singapore and Thailand, contributing to various humanitarian initiatives addressing contemporary social needs and issues.

Visit www.techshake.asia if you would like to know and connect more with Vulpes Ventures.