Due Diligence Column in The Business Times

Vertex SEA | 19 May 2025

We are pleased to share that we will be publishing a monthly column "Due Diligence" in The Business Times, every Third Monday of the month. We are writing this monthly column, focusing on key insights gained from investing and appraising businesses across various sectors.

We invite you to share questions, ideas or suggestions you may have with us too, for this monthly column too via vvsea_communications@vertexventures.com

#1 The role of venture capital in managing startups

27 Sep 2022

By Carmen Yuen, General Partner

In the first of our monthly new column “Due Diligence”, Carmen Yuen, our general partner shares our thoughts on the role of VCs in managing and guiding portfolio companies, specifically in matters of enforcing corporate governance to avoid such painful scenarios.

Read more here.

#2 Science Fiction on the Factory Floor is More Real than You Think. How Good is the Tech?

17 Oct 2022

By Abhijit Gupta, Senior Investment Associate

Imagine walking into a factory and being greeted by a line of robotic arms, each working on wrapping and bundling dresses into a carton.

Sounds like science fiction, but the reality of advanced manufacturing today comes quite close. Our senior investment associate Abhijit dives into the factors and metrics to consider when investing into smart manufacturing.

Read more here.

#3 Investing opportunities in the carbon credit market

21 Nov 2022

By Pui Yan Leung, Partner and Khushbu Topandasani, Senior Investment Associate

What does venture capital have to do with saving the environment?

We believe that Southeast Asia’s transformation toward a greener economy offers interesting investment opportunities, and it would be a missed opportunity to ignore or dismiss the ClimateTech category in our region, even though the space is still nascent. Our colleague Puiyan and Khushbu shed light on the carbon credits related investing opportunities that Southeast Asia offers.

Read more here.

#4 The future of fintech: From digital lenders to neobanks

16 Jan 2023

By Chan Yip Pang, Executive Director

In Asia, digital lending is not new.

However we believe Southeast Asia and India are entering into the “Third Wave” of digital lending, where the advent and confluence of artificial intelligence, open finance and embedded finance are creating breakthroughs in credit assessment and customer outreach. Our colleague Chan Yip walks us through the evolution of fintech in Southeast Asia and highlights the innovation trends in these markets.

Read more here.

#5 How to Assess a B2B Marketplace

20 Feb 2023

By Piyush Kharbanda, General Partner

How does one evaluate B2B marketplace for investment?

Our general partner, Piyush Kharbanda, discusses the challenges behind building B2B commerce platforms and shares his insights on three key metrics to evaluate them from a VC standpoint.

Read more here.

#6 What is a VC-Backable F&B business

By Khushbu Topandasani, Associate Director and Elise Tan, Director, Communications and Community

Southeast Asia offers some of the world’s best gastronomic destinations – food is a central part of our life in this part of the world. The food market is valued at US$696 billion in 2023 and projected to grow at a compound annual growth rate (CAGR) of 6.96 per cent between 2023 and 2027.

However, keeping customers happy and sustaining a food and beverage (F&B) business is challenging. How do investors assess F&B startups? As an active investor of startups in the F&B sector across South-east Asia and India, we have been observing the F&B scene closely. Curious, get your answers here.

#7 Payer, Patients and Providers - the keys to success for Digital Health Startups

15 May 2023

By Carmen Yuen, General Partner and Wayne Wee, Investment Analyst

The health-care industry is under pressure not only to increase capacity but also to raise the efficiency of health-care providers, via digital technologies and streamlining of processes to meet unmet needs.

The industry has undergone significant transformation in recent years. The integration of generative AI into healthcare has also opened up a whole new world of possibilities for innovation. And the Covid-19 pandemic has further accelerated the adoption of digital health practices by governments around the world. As the health-care industry continues to evolve, it is likely that we will see even more exciting advances in digital health in the coming years.

Read more here.

#8 The hard talk that venture capitalists need to have with startups now

19 June 2023

By Benedict Tan, Investment Associate

As an early stage investor, we often hear about the various ways startup founders celebrate after successfully raising investments from venture capitalist (VC) firms. Raising new funds is no easy feat, and definitely a milestone for the founders.

Does the relationship between the VC and founders end when the money gets into the bank? It is actually just the beginning of a long journey where difficult decisions will be made.

Read more here.

#9 Defending the moat around the generative AI Castle

17 July 2023

By Genping Liu, Venture Partner and Kah Kheng Gan, Investment Analyst

Recent months have seen the generative AI space grow at an incredible pace, from products like ChatGPT reaching hundreds of millions of users, to enormous funding rounds. With the immense potential that the sector has, investors are watching this space closely, looking for the next big thing.

However, after peeling back all the excitement and clout around AI, investors are left with a question: Is all this activity building sustainable and defensible moats?

Read more here.

#10 Why South-east Asia still holds much promise for startups and venture capital

21 August 2023

By Gary Khoeng, Partner

Is South-east Asia biting the dust in the global startup race? South-east Asia’s startup scene, still very nascent, only began to bloom in the last decade. But are we lagging behind, struggling to keep pace with other global tech powerhouses? Now is the moment to critically examine our trajectory and determine if the South-east Asian startup scene needs a stern reality check.

Read more here.

#11 Demystifying direct-to-consumer brands

16 October 2023

By Jessica Koh, Director

The world’s love affair with direct-to-consumer brands first began little over a decade ago. While early drivers of growth supported the meteoric rise of new-age, Internet-first companies, margin compression and a funding drought have led to their swift downfall. Are there still opportunities in DTC? Jessica Koh, our Director in investments explains in our latest article in The Business Times that opportunities are still abound in DTC, if done right. How does she evaluate companies in the sector?

Read more here.

#12 Beyond Product and Vision, Financial Controls and Performance Metrics are Crucial to Startup Success

20 Nov 2023

By Himanshu Jain, Associate Director

Many entrepreneurs often emphasise that in the initial stages of a startup, “product is king”. Founders dedicate a significant portion of their time and effort to creating a compelling product or service, and assembling a team capable of bringing that vision to fruition.

Seems like a straightforward playbook, doesn’t it? However, there is one critical element that’s often missing from many early-stage companies that could suddenly break a business — robust processes and support functions.

Read more here.

#13 Where South-east Asian contenders can carve a niche in the GenAI landscape

27 May 2024

By Carmen Yuen and Guan Dian

The surge of interest in generative AI (artificial intelligence) has fuelled a global investment boom. The exponential adoption of technologies like ChatGPT, which amassed 100 million monthly active users just two months after launch, has captivated investors hungry for the next big thing.

Where can South-east Asian contenders carve a niche in the GenAI landscape?

Read more here.

#14 Eyeing opportunities in the EV race? Look at charging infrastructure

23 Sept 2024

By Himanshu Jain

The electric vehicle (EV) market in India and Southeast Asia is experiencing rapid growth, driven by government incentives, changing consumer preferences, and a shift towards sustainable mobility, with EV sales in India quadrupling from 2021 to 2023. While EV manufacturers have attracted significant investment, there is a growing focus on developing supporting infrastructure, particularly charging networks, which presents unique investment opportunities across the value chain and is crucial for accelerating EV adoption in the region.

Read more here.

#15 The Role of Artificial Intelligence in Revolutionizing Venture Capital Deal Sourcing

14 Oct 2024

By Genping Liu

The impact of artificial intelligence (AI) on venture capital deal sourcing in the U.S. It highlights how AI tools are transforming traditional methods by improving efficiency and accuracy in identifying potential investment opportunities. The use of AI allows venture capitalists to analyse vast amounts of data quickly, enabling them to make more informed decisions. It presents a case study illustrating these changes and emphasises the growing importance of AI in enhancing competitive advantage within the venture capital landscape.

Read more here.

#16 South-east Asia’s evolving retail trends: upgrading, downgrading, or filling unmet needs?

24 Nov 2024

By Genping Liu

Southeast Asia's retail landscape has evolved significantly over the past decade, primarily driven by the rise of e-commerce giants like Shopee and Lazada. As competition stabilises, venture capitalists are shifting focus to direct-to-consumer (D2C) brands, innovative food and beverage concepts, and addressing unmet consumer needs. Key trends include "consumption upgrading," where a growing middle class seeks premium products that reflect aspiration, and "consumption downgrading," where consumers prioritise affordability amid economic pressures. Additionally, opportunities abound for brands that can fill market gaps with unique offerings. This dynamic environment suggests that while new retail ventures may not achieve decacorn status, they can still thrive and attract investment.

Read more here.

#17 South-east Asia venture capital hitting the wall in 2024

24 Dec 2024

By Genping Liu

In 2024, Southeast Asia's venture capital sector faced significant challenges, with industry insiders widely considering this year to be more difficult than the past five, leading to some VCs exiting the market. Despite the prevailing pessimism, this period has been identified as a foundational phase for building portfolios poised for strong returns over the next five to ten years. Historically, some of the best investments have been made during times of market uncertainty, allowing founders and investors to focus on long-term vision rather than short-term gains. The current environment offers more reasonable valuations and less competition, enabling sustainable growth. Additionally, the region's venture ecosystem has matured, with a more dynamic and diversified landscape, including sectors like deep technology, semiconductor technology, and profitable software-as-a-service companies. While challenges such as geopolitical tensions and evolving regulatory frameworks persist, the growing maturity of South-east Asia's VC environment positions the region for sustainable growth in the coming decade.

Read more here.

#18 Indonesia’s dire shortage of specialist doctors opens window for investors

19 Jan 2025

By Andri Wardhani, Director

Indonesia faces a severe shortfall of 29,000 specialist doctors, with current institutions producing only 2,700 annually. The new Omnibus Health Law aims to address this through policy reforms, including the Hospital-based Specialist Doctor Education Programme (PPDSBRS), which allows general practitioners to train in hospitals rather than universities. Decentralisation is key to improving healthcare access, with specialist clinics emerging as a scalable solution. As Indonesia battles chronic diseases, specialist clinics present a compelling investment opportunity. With reforms driving growth in specialist numbers, investors have a chance to shape the future of Indonesia’s healthcare landscape.

Read more here.

#19 Numbers really count: Why financial modelling is key for startups

24 Feb 2025

By Puiyan Leung, Partner

Financial modelling has shifted from a routine task to a crucial tool in early-stage investing. Venture capitalists use financial models to assess founders' visions, refine strategies, and identify key business drivers. These models not only support fundraising but also enable informed decision-making, facilitate constructive discussions, and help startups adapt to changing circumstances. More than a static document, a financial model is a dynamic guide that offers insights into a company’s potential, blending creativity with disciplined analysis to steer the business toward success.

Read more here.

#20 Indonesia’s credit conundrum: Risks and opportunities in a fast-growing debt market

17 Mar 2025

By Joshua Agusta, Executive Director, Investment

Indonesia’s credit market presents both challenges and opportunities. Despite strong economic growth, the country’s underdeveloped credit system has led to high non-performing loan (NPL) risks and reliance on informal lending. However, fintech innovations—particularly AI-driven credit scoring and embedded finance—are transforming risk assessment and expanding financial inclusion. With alternative data enabling better credit decisions, Indonesia is poised for disruption in digital lending, making it a promising frontier for investors and financial institutions.

Read more here.

#21 South-east Asia is binging on snacks, and investors are buying in

21 April 2025

By Khushbu Topandasani, Associate Director, Investment

Southeast Asia’s snack sector is undergoing a transformation, with blockbuster deals like Affinity Equity Partners’ US$1.2 billion acquisition of Yupi and Temasek’s US$1 billion stake in Haldiram’s highlighting the region’s emergence as an investable hotspot for fast-moving consumer goods. Driven by a young, urbanizing population and rising incomes, the snack market is expanding rapidly-valued at nearly US$49 billion and growing over 7% annually-fueled by trends in health-conscious, premium, and functional snacks. Despite inflation and fierce competition, resilient consumer demand, digital innovation, and export readiness are powering robust margins and attracting global investors, making Southeast Asia’s snack industry a compelling growth story.

Read more here.

#22 Can Vietnam redefine the future of cross-border e-commerce, despite potentially stormy tradewinds ahead?

19 May 2025

By Benedict Tan, Associate Director, Investment

Global e-commerce is rapidly evolving, with cross-border trade reshaping how sellers reach international consumers directly. While China remains a dominant player, Vietnam is emerging as a strong contender due to its low manufacturing costs, trade agreements, and rising foreign investment. Chinese sellers have moved beyond manufacturing to become global brand owners, using platforms like Amazon and adopting Western-centric branding to control the full customer journey. Vietnam is following a similar path, with local brands beginning to build direct-to-consumer channels, although logistical infrastructure remains a challenge. With the global market expected to reach US$5 trillion by 2028, shifting geopolitical dynamics and potential US tariff changes, such as the removal of the de minimis exemption, create uncertainty for the future of cross-border e-commerce, particularly for smaller sellers.