Financial world is the first to be transformed by Web3: Saison Crypto’s Qin En Looi

Last year, Singapore-based Saison Capital, the early-stage VC arm of Japan’s financial services giant Credit Saison, launched a token fund to accelerate Web3 investments in Southeast Asia and India. The fund, Saison Crypto, follows a unique structure and draws down capital from its Japanese parent.

Saison Crypto prioritises DeFi and Real World Assets (RWA) and has already invested in over 50 projects. We spoke with its Partner, Qin En Looi, about the fund’s philosophy, focus areas, and the Web3 industry.

Edited excerpts:

What inspired Saison Capital to launch Saison Crypto and focus on accelerating Web3 investments in Southeast Asia and India, especially when the Web3 market is down globally?

Saison Capital launched Saison Crypto because we believe the next internet revolution and financial services will be built on the blockchain. Web3, underpinned by the blockchain, presents a radically different way for ownership of digital assets and money movement.

Launching Saison Crypto reflects our beliefs and convictions. Even though Saison Crypto was launched in the funding winter, we know one thing about “seasons”—they come to an end. And through the various seasons, what matters most is our ability to ride through them and emerge stronger.

How does the permanent capital entity structure of Saison Crypto differ from traditional General Partner/Limited Partner structures in terms of investment strategy and flexibility?

Saison Crypto is an evergreen investment entity, meaning we aren’t subject to the usual investment deployment and payback periods like most General Partner/Limited Partner structures. In other words, we are patient capital.

Also Read: Saison Capital rolls out new token fund to accelerate Web3 investments

We are not in a hurry to deploy capital and can be selective about the right investments. Similarly, we are not in a hurry to exit our investments and can be the anchor partner to our portfolio companies through the different seasons.

Can you elaborate on the specific advantages of drawing capital from Credit Saison’s sizeable AUM for your investment activities?

Credit Saison has a deep legacy in traditional finance, but innovation is part of the group’s DNA, and evolution is necessary to keep thriving. As a result, Saison Crypto enjoys the full support of Credit Saison.

Beyond patient, evergreen capital from Credit Saison, we have the opportunity to be a role model for other Asian financial institutions. Talk is cheap. It is common for large institutions to declare their interest in digital assets and then go silent. Saison Crypto is the evidence that we are not “talk-only.”

What types of projects or companies does Saison Crypto prioritise for investments within the Web3 space, and why?

DeFi and Real World Assets (RWA) are the two sectors that we focus on. We believe the financial world is the first to be transformed by Web3.

DeFi remains Web3’s largest use case and has demonstrated its ability to be resilient, inclusive, and efficient. We are always looking for innovative use cases that can create composable money, programmable assets, and trustless transactions.

Real World Assets (RWA) is forecast to hit US$16 trillion by 2030, and we believe that this innovation will be driven by both institutions (like Credit Saison) and startups. RWA is built on the premise that the blockchain presents a radically different way for money to move. We no longer need to rely on the financial infrastructure that has been around for decades but, in line with our company’s mission, play a pivotal role in ensuring the progress and transformation of the financial ecosystem to create more opportunities for business and people,

Could you share more details about the first token-only investment that Saison Crypto is planning to make?

We have already made over 50 early-stage investments and deployed over US$20 million in the Web3 space. Some of our portfolio companies have recently launched their tokens successfully.

With an average ticket size between US$200,000 and US$500,000, how does Saison Crypto ensure adequate follow-on support for portfolio companies?

As Saison Capital is not a typical fund, we pursue an active fund-of-funds mandate. In addition to direct investments, we are active LPs in several crypto-native funds. This ensures that our portfolio companies have strong follow-on support.

Furthermore, our support is more than just financial. Often, we are the first institutional customer, partner, or liquidity provider in our portfolio companies. For our portfolio companies, being able to show that a US$30 billion AUM financial institution is participating in their products and services speaks volumes.

What are the significant gaps in Web3 infrastructure that Saison Crypto aims to address through its investments, particularly in the context of accelerating mainstream adoption?

Firstly, scalability remains a concern, with current blockchain networks struggling to handle high transaction volumes efficiently. Our investments focus on scalable solutions, including Layer 1 and Layer 2 blockchains and the protocols built atop them.

Also Read: Vietnam’s Web3 revolution: Beyond Axie Infinity, unveiling the rise of diverse crypto startups

Secondly, interoperability between different blockchain platforms and off-chain systems is crucial for seamless user experiences. We look for interoperable protocols and bridges that reduce the friction in exchanging assets and data.

Finally, user experience and accessibility are paramount for mass adoption. We support projects that improve user interfaces, enhance user onboarding processes, and create intuitive experiences that rival centralised alternatives.

How does Saison Crypto identify and partner with experienced founders and operators with long-term views of Web3 innovations?

We embrace the Web3 ethos of openness, collaboration, and transparency, and we seek like-minded partners and changemakers committed to providing greater financial access to more people through web3. As such, we are able to identify founders through our extensive networks of founders, investors, industry leaders and institutions.

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