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Understanding the Southeast Asia Venture Capital Risk Premium


Source article can be found here -> https://bit.ly/3NjX4vb


Our founder, Ryan Poon, shares his view on the Southeast Asia Venture Capital Risk Premium:


"As a number person, I find it necessary to quantify and get a sense of what you should expect in terms of the risk and return dynamic in any asset class that you are trying to get an exposure to within your portfolio."

"While the historical data in the Southeast Asia's VC space maybe limited, I came across the above article from CAIA where the author did a very good job in giving out certain expected risk and return data points as a reference for VC investors in the different stages.


As shown in the summary table, for seed/pre Series-A investors, the key message here is to target for almost ~40% (i.e. risk premium over public market return = ~29% + 12%) or so annualized return over a 5 to 7-year period, implying a 5x to 10x gross return."



LinkedIn post: https://bit.ly/3DeNogz

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