While many Chinese venture capitalists are looking to or have begun to deploy capital in Southeast Asia, localisation is still the key tool to navigate this region, according to panelists at DealStreetAsia’s Asia PE-VC Summit 2019 held in Singapore.
“There is a lot of interest among Chinese unicorns to do business here. But, I think localisation is most important. The best is to win a strategic investment and let the local teams run the business – it could either be an exit for the founders or they could be part of the ecosystem. There is a need for a local co-founder, otherwise, I don’t think it will work,” said ZWC Partners founding and managing partner Patrick Cheung in a panel discussion titled ‘Is Chinese money shifting direction to invest closer to home’.