Cambodia Investment Review
On Episode 128 of the Rising Giants podcast, hosts Max and Dom sat down with Twwo Jaruthassanakul, the Investment Manager and Southeast Asia Lead at Seedstars, who shared his deep insights into the startup ecosystem of Southeast Asia. Twwo detailed his professional journey, starting from his early interest in finance and investment management to his current role at Seedstars, a company renowned for its impact-focused investment strategy.
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Twwo’s interest in the investment space began during his upbringing in Thailand. He attended Chulalongkorn University in Bangkok, where he was influenced by his family’s involvement in the banking industry. “Attending a few small events during my time at university piqued my interest in investment,” he shared. Initially torn between engineering and finance, Twwo ultimately chose to pursue investment banking.
“The private equity scene in Thailand isn’t as developed as in Hong Kong or Singapore,” he noted, which led him to his first job at an impact-focused accelerator from Singapore expanding into the Thai market around 2016, a period he described as “the early days of startups in Thailand.”
The Challenge Of Expanding Startups Beyond Their Local Market
Reflecting on his career path, Twwo highlighted his time at 500 Global, a venture capital firm focused on building fast-growing technology companies. “The main reason for joining 500 Global was their active investment strategy,” he said. “Nobody wants to be doing just one or two deals a year at the early stage. The management team was also great to learn from, and the firm’s global footprint and impressive portfolio of early-stage investments were significant draws.”
Twwo’s move to Seedstars was driven by a desire to address the challenge of expanding Thai startups beyond the local market. “After spending five years in the ecosystem, I wanted to help Thai startups gain better regional market access,” he explained. His role involves building a pipeline, portfolio support, building the networ and, long-term fund strategy. “A typical week includes daily 30-minute initial calls, weekly two-hour deep dive calls, supporting portfolio companies and meeting early-stage investors and other VC firms,” he said.
Seedstars’ current investment strategy focuses on commitments ranging from $100,000 to $300,000, with a total of 12 firms invested in so far in Southeast Asia, predominantly in Indonesia and the Philippines, with fewer in Thailand. Twwo observed, “The Indonesian market was very hot when we started. There was a big drop in 2024 after the pandemic in 2022, but there’s been a slow, steady increase throughout last year. However, the momentum has somewhat stalled this year, with average pre-seed valuations falling to a more reasonable level.”
Malaysia And Thailand Offer Significant Opportunities In ASEAN
When asked about other countries in the region, Twwo pointed out, “Indonesia has most of the capital, with a lot of overflow into Vietnam and the Philippines. However, Malaysia and Thailand offer significant opportunities. Thailand, in particular, has been overlooked despite having good human capital from universities and promising local case studies.”
Twwo highlighted one of Seedstars’ portfolio companies, ‘Baniql,’ which addresses the challenge of extracting nickel in an environmentally friendly manner. “Baniql is developing a pilot project with a closed-loop, sustainable, and cost-effective solution,” he said, emphasizing the importance of ESG (Environmental, Social, and Governance) factors in Seedstars’ investment strategy. “We don’t focus on sectors like entertainment but rather on those with an impact lens.”
Discussing exit strategies, Twwo mentioned, “We usually look for long-term involvement in the cap table for five to seven years before starting to divest. If there’s no IPO plan, we rely on secondary exits, which have traditionally been challenging in the region but are maturing now.”
Founders Need A Strong Reason For Launching
Twwo also shared some red flags and green flags for startups. “Misrepresentation of financials and founder commitment are major red flags,” he said. “Founders need a strong reason for launching a company and a coherent journey. Green flags include market experience and the ability to articulate their vision and the gap they want to fill. A founder who can attract and build a team is crucial.”
Building professional relationships is vital for the ecosystem, Twwo noted. “Helping the ecosystem helps everyone, including yourself. In small markets like ours, it’s even more important.”
In closing, Twwo shared the greatest piece of advice he’s ever received: “Long-term thinking is about having vision and direction and understanding how your short-term actions impact that long-term impact. The concept of compounding in life and how those key five pillars of life compound every year is crucial.”
Twwo’s insights provide a comprehensive view of the Southeast Asia startup ecosystem, highlighting both opportunities and challenges, and the importance of long-term thinking and community support in driving success.
