Desmond Marshall, Managing Director, Rouge Ventures
Since its founding in 2009, Rouge Ventures has maintained a consistent focus on investing in innovations that address long-term challenges rather than fleeting trends.
Managing Director Desmond Marshall reflects on this philosophy, noting, “It’s not about one-time fads or tech that no one uses.”
While their core principles remain steadfast, Marshall acknowledges the transformative role of technological advancements in shaping viable solutions. Rouge Ventures was among the first to explore blockchain technology, and early encounters emphasized the importance of discerning genuine innovation from unnecessary complexity.
Rouge Ventures’ investment philosophy extends across diverse industries, supporting both established enterprises and startups. This pragmatic yet forward-thinking approach underscores the venture capital firm’s reputation as a pioneer in recognising transformative opportunities.
One such initiative is the Sustainability Innovations Research Center (SIRC) in Thailand, where Rouge Ventures has converted traditional rice fields into a testing ground for agritech startups. Currently hosting over 60 startups, this platform offers real-world conditions for innovation and access to investors and business clients. By providing this free resource, Rouge Ventures demonstrates its commitment to fostering meaningful advancements while addressing critical global challenges, further solidifying its legacy of impactful investment.
Also Read: Why agritech startups will call for the next e-commerce revolution
In an email interview, Marshall shares insights about the Southeast Asian (SEA) tech startup ecosystem and what is coming up in the industry, particularly the agritech space.
The following is an edited excerpt of the conversation.
What are your thoughts on the current state of the SEA tech startup ecosystem, and how do you see it evolving over the next few years?
It is getting better [with] better education, bigger support by communities and government.
The startups will, of course, have their own niche in SEA, focusing on local needs like farming or tourism. The solutions should be enhanced dramatically in the next few years, but I see now that it is still very premature, even for local markets.
If they needed funding, scalability in terms of size and adaptability needed to be addressed. How each country partners with which organisations is also very critical. SEA is prone to natural disasters, which affect humans and crops. SEA startups in this area could and should stand out with better credibility.
Could you share Rouge Ventures’ strategic plans for SEA in the coming years? Are there specific sectors or markets you are particularly interested in?
Farming, especially for SEA, is an important commerce and export.
Indoor farming does not work; investors are pulling out in droves. We still need horizontal outdoor farming to feed the masses because everyone is wasting food and demanding cheaper prices. This means that climate change, droughts, floods, typhoons, etc., are all big factors that new tech needs to address.
Also Read: Unlocking agritech’s potential: Can Southeast Asia rise to the challenge?
Or else there will be famine or, even worse, riots due to high food prices. That is why we converted our own real rice farm in Thailand into an agritech accelerator, where we allow international agritech startups to come, test, and showcase in a real environment in front of clients and investors.
With the launch of your accelerator, agritech has become a focal point for Rouge Ventures. What motivated this shift towards agritech, and what potential do you see in this sector?
I have always been a supporter of sustainability-related projects, assuming they were not scams. Farming is one of them, but the fact we own a real rice farm means I get to know what is really going on.
Thailand is susceptible to extreme climates these days, from extreme sun to extreme floods and rain, making it impossible to grow full harvests. This means other locations around the world are facing similar issues. And with people demanding cheaper food, we have to ensure that there are enough quantities of produce grown. Tech really needs to be involved, or it cannot sustain itself for long.
The accelerator offers tech startups a unique opportunity to test their innovations in a real-life environment. How has the global tech community received this initiative, and what innovations have you seen emerge from it so far?
We have seen many satellite imagery startups doing farm predictive analytics. Most farmers are clueless about this area, as they rely on local weather reports. AI advancements are speeding this process up and making it more accurate, while at the same time showing how serious climate change is in the SEA area.
Startups are very receptive; how often do you have some venture capitalist telling you they own a real farm and that they could join this community for free and showcase and demo in real life in front of clients and investors?
Not many, if not none, around the world.
Also Read: What can food-agritech startups and SMEs do for business continuity amidst the pandemic?
What trends do you foresee in agritech investment in 2024, especially in the context of SEA? Are there any emerging technologies or startups that you’re particularly excited about?
AI is definitely a game changer in terms of doing analysis. I would see that more tech [are building solutions to] predicting the weather, but more importantly, building new innovations to protect crops from extreme weather.
We are seeing many new developments in fertilisers, soil enhancement, and seed grains, but I do not support these things as much as noninvasive, non-DNA-changing methods.
I look forward to faster farming processes using robotics, such as faster and safer harvesting methods, and certainly any new innovation that shields crops from extreme weather.
What do you believe are the biggest challenges and opportunities for agritech startups in SEA, and how is Rouge Ventures positioned to support them?
Agritech startups face a universal problem in that they position themselves as scientists and work in a lab or office. That is what the vertical farming startups did. You need a real farm to feel the weather, break your back in growing crops, and get your hands dirty.
And no, investors will not fund you millions of dollars just by reading your PowerPoint.
They all need a real farm to track and collect valuable data to improve and showcase to potential clients. Our Agtech Accelerator is doing just that, and the startups can collect valuable Asian data to do analysis. That is critical for any farming business, as SEA is critically dependent on farm produce.
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Image Credit: Rogue Ventures
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