We’ll start to see more solo-GP VCs emerge in SEA: Wing Vasiksiri of WV Fund II

Solo-GP VC funds are gaining traction across the US, and Southeast Asia will also see the emergence of such funds, according to Wing Vasiksiri, Founder of WV Fund II, solo-GP VC firm focusing on the region.

A Solo-GP VC fund is a fund with one General Partner who is also the lone member of the investment committee.

“This model is new to Southeast Asia but has taken off in the US; for example, Elad Gil, Lachy Groom, and Josh Buckley,” Vasiksiri, who earlier founded iSeed SEA, said in an interview with e27. “Like in India, we will start to see more of this [Solo-GP fund] emerge in the region.”

Funds like Kettleborough VC, Better Capital, and Streamlined Ventures emerged in India recently. As per another report, a new wave of solo GP VCs is also coming to Europe.

Also Read: iSeed SEA launches micro-fund targeting Indonesia, Vietnam, Thailand

According to Vasiksiri, the new model has certain advantages, including empathy for founders, speed and transparency, and elimination of the principal-agent problem.

“I am also a founder, although I started a fund instead of a company. I have to think through the same things every founder does: what is my competitive advantage, and how do I hire, scale, market, and brand my company? This gives me high empathy for the entrepreneurial journey,” he said.

Moreover, there is only one decision-maker, meaning the sole General Partner can drastically reduce time in the decision-making process. The solo partner can commit to a round within days or hours if needed and can make decisions quickly, which is greatly appreciated by founders. Every founder also has a direct relationship with the General Partner.

“Eliminating the principal agent is one of the biggest problems in any institution where employers and employees don’t always have aligned incentives. For solo GPs, the brand of the fund equals the brand of the individual, and everything I do reflects on the fund and vice versa,” he added.

However, the model also has some disadvantages, one being it can be challenging to scale as you have more relationships and have to manage time well.

To a question about the difference between an angel investor and a solo-GP fund, he said that an angel investor institutionalises his/her investing and raises outside capital. Most of the time, he/she is not a full-time investor but has another job. “An angel fund can be a solo GP fund if there is only one GP and decision maker.”

Also Read: “To heavily rely on AI for your decision making process in venture investment would be a stretch”

Launched recently, WV Fund II is a seed-stage, sector-agnostic fund investing in founders across Southeast Asia. His first fund, iSeed SEA, was also a solo GP fund, and it is fully deployed.

WV Fund II and iSeed SE have US$14 million in assets under management. The former has invested in ten companies, including mio and Delos Aqua, Upmesh, Haulio, Pina, Mohjo, and Farmacare.

The fund will continue investing across the region by partnering with top founders in my core markets (Singapore, Indonesia, and Vietnam) and secondary markets (Thailand, Philippines, and Malaysia).

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