Late-stage VC rebound in Southeast Asia will take time: Meet Capital’s John Lim

Meet Capital is the latest early-stage VC firm in town. An affiliate of the innovation consulting firm Meet Ventures, Singapore-based Meet Capital is already deploying its maiden US$10 million fund across Asia and beyond to back exceptional founders solving big real-world problems. The VC firm writes cheques of up to US$500,000 in early-stage, tech-enabled startups.

Led by General Partners John Lim, Farhan Firdaus, Matthew Tang, and Antron Lim, Meet Capital has access to proprietary deal flow generated by all the accelerator programmes run by Meet Ventures in the past five years. The firm claims it also has strong relationships with hundreds of active investors and community partners.

e27 spoke with John Lim to learn more about Meet Capital’s investment philosophy, its focus, and the state of the VC industry in Southeast Asia.

Edited excerpts from the interview:

Can you tell us more about the vision behind Meet Capital’s creation? What gap in the market are you hoping to address?

Meet Capital typically invests after a startup has achieved product-market fit. We see ourselves as the first investor to support their entry into the growth stage. This is also the stage where we can provide the most value-added support in the form of business introductions and market expansion advisory.

What specific types of technologies or industries are of particular interest to the fund?

We are technology agnostic because the success of most companies lies not in their technology but in their ability to transform deep customer insights into real-world solutions.

Also Read: The secret sauce of de-risking early-stage venture capital

That being said, we recognise the undisputed importance and need of AI and, by extension, the need for proprietary data sets. Startups that can collect and leverage unique data sets will gain a strong competitive advantage. We are industry agnostic because we believe that good startups can come from any industry. We can rely on the help of industry experts to critically evaluate these startups during the due diligence process.

What kind of companies does Meet Capital consider to be “solving big real-world problems”? Can you give some specific examples?

We define big real-world problems as problems with at least a billion-dollar market opportunity.

For example, if a startup sells an AI-powered learning tool for US$1,000 per year and has at least 1,000,000 potential clients in its local market, we can assume that it has a large enough market to pique our interest.

Meet Capital’s first fund is deploying US$10 million across Asia and beyond. Can you share some insights into the geographic focus of your investments and why you chose to invest beyond Asia?

Meet Capital is headquartered in Singapore, so we primarily focus on the vibrant markets of Southeast Asia. The region’s rapid growth (projected to reach US$600 billion in GMV by 2030) presents numerous investment opportunities. This rising region, despite global economic challenges, has shown resilience with continued double-digit revenue growth. We have a deep understanding and networks in the region that can benefit our portfolio companies.

That being said, we also remain open to compelling opportunities in other markets because we believe that all great startups will eventually have international aspirations and become global companies. Therefore, a leading startup from the US or China could very likely expand into Southeast Asia eventually.

How does Meet Capital navigate the complexities and nuances of investing in the diverse markets of Southeast Asia?

Southeast Asia is a market with diverse needs and preferences. We need to adopt a localised approach when doing business or investing in the region. One way we achieve this is by having either full-time or part-time staff on the ground in each of our target Southeast Asian markets. Having strong local networks helps us better source local startups and also provides us with local insights to make better investment decisions.

What is Meet Capital’s perspective on the current state of venture capital in Southeast Asia? What are some challenges and opportunities you see?

One key challenge is the continued decline of venture funding in Southeast Asia, which in 2024 has fallen to about a fifth of the peak it recorded in 2021. Late-stage funding, in particular, has reached historic lows in 2024, coming in even lower than early-stage investments in the first nine months of 2024.

Outcomes in Southeast Asia have been significantly less capital-efficient compared to other markets, which is keeping large global investors away. Also, investors anticipate greater uncertainties weighing on the region under the new US administration.

Also Read: Rethinking venture capital: 5 ways it goes beyond investing

Nevertheless, we believe that Southeast Asia still presents many exciting opportunities. The regional digital economy is estimated to be around US$263 billion in GMV and is projected to continue growing and progressing towards profitability. Southeast Asia is also emerging as a global hub for AI innovation and adoption, having attracted over US$30 billion in commitments to AI infrastructure in H1 2024.

For early-stage investors who are actively deploying in Southeast Asia now, the reset in startup valuations will create favourable entry points into various investment themes with great upside potential.

There’s no dearth of early-stage funds in Southeast Asia, but late-stage investment is scarce. When do you think the late-stage VC landscape will return to its glorious days?

The return of a robust late-stage VC landscape may take some time. While there are signs of improvement expected in 2025, driven by potential interest rate cuts and increased investments targeting Southeast Asia, a full recovery to “glorious days” is not guaranteed in the immediate future.

There are steps, however, that stakeholders in the regional ecosystem can take to improve the situation. Ambitious startups in Southeast Asia can take a bet on going global, which would make them more attractive to later-stage investors because it opens up more exit options for these investors. Regional governments, on the other hand, can work on boosting liquidity for tech companies in the public markets of Southeast Asia, which have been tepid.

How do you see the current global economic climate impacting the VC landscape in Southeast Asia, and how is Meet Capital adapting to these changes?

The current global economic climate has led to more cautious decision-making in Southeast Asia’s VC landscape. Meet Capital will adapt by selectively prioritising companies with clear paths to profitability over those pursuing growth at all costs.

Also Read: What did we learn from failing to raise VC funding?

Profitable startups that optimise costs and streamline operations are not only better equipped to weather economic downturns and market fluctuations, but they are also more attractive to discerning investors seeking sustainable business models and potential acquirers.

How do you see the SEA’s VC landscape evolving in 2025?

Some key developments could include:

• Increased regional focus: More founders are designing ventures with regional scalability in mind from day one.
• Bifurcation of investment strategies: Some funds may focus more on strategies aligned with the West and others on the East.
• Sector-specific growth: Generative AI and automation technologies will remain dominant topics. Fintech and Healthtech might also see growth.
• Improved funding environment: Industry players can expect a more buoyant funding landscape, driven by expected rate cuts and increased investment inflows.

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