Fundraising in China x Longhash

TL;DR

Asian investors value traction and prefer startups with existing products and a proven track record of success. They also prioritize following other investors and focus on building local ecosystems.

Transcript

okay so um what is different about the asian investors compared to the europeans and americans i think um it's quite clear uh between my experience and what i've experienced um with the the uk the eu and the u.s so main thing actually is that asians were obsessed with traction um it it's very rare for investors to go for a idea at um at the ideatio... Read More

Key Insights

• ❓ Asian investors prioritize traction and prefer startups with existing products.
• ❓ Following other investors is crucial in Asian investments.
• ❓ Layer two investments are usually local to Asian VC firms.
• 🏛️ Asian investors focus on building ecosystems and prefer strategic investments.
• 🔬 Many Asian MNCs invest in blockchain to expand their reach.
• 😘 Investment terms in Asia tend to have smaller check sizes and lower valuations.
• 🍉 Convertible notes are common in Asian investments, with more conservative terms.

Questions & Answers

Q: How do Asian investors differ from Europeans and Americans?

The main difference is that Asian investors prioritize traction and usually invest in startups with existing products. Europeans and Americans may invest at the ideation stage.

Q: Why do Asian investors value following other investors?

Following other investors is important in Asian investments as it indicates potential success and serves as an evaluation criterion. The presence of reputable investors increases a startup's chances of receiving funding.

Q: Are layer two investments mostly local to Asia?

Yes, layer two investments, such as DApps built on top of protocols, are mostly local to Asian VC firms. Local investments allow VC firms to strategically help startups and have more influence on their success.

Q: What type of investments do Asian investors prefer?

Asian investors tend to focus on ecosystem investments, building up a complete infrastructure around a technology or sector. They also consider application investments if it contributes to building an ecosystem.

Summary & Key Takeaways

• Asian investors prioritize traction and prefer startups with existing products, unlike Europeans and Americans who may invest at the ideation stage.

• Following other investors is crucial in Asian investments, as it indicates potential success and is a significant evaluation criterion.

• Layer two investments are typically local to Asian VC firms, while applications built on top of protocols are usually tied to specific regions.