Cambodia Investment Review
In episode 134 of the Rising Giants Podcast, hosts Max Thornton and Dom Kalousek spoke with Henry Maw, founder of X Venture Holdings, a venture capital firm focused on early-stage investments across Southeast Asia, particularly in Cambodia and Myanmar. With over 15 years of experience in the investment industry, Henry has played a pivotal role in supporting startups in these emerging markets. X Venture Holdings has provided crucial pre-seed funding to five startups, helping to create a supportive environment for young, innovative entrepreneurs in the region.
Building a Venture Capital Ecosystem in Southeast Asia
Born in Myanmar, Henry’s educational and professional journey spans several continents. He studied in Singapore and Toronto, later working as a junior investment banker at JP Morgan in Toronto. Henry’s early career equipped him with the technical knowledge of investment banking, which laid the foundation for his later work in Southeast Asia. “In 2011, I returned to Myanmar, working on investment strategy for one of the big conglomerates. This experience was a turning point for me. I realized the need for capital to support young founders, and that’s when I decided to move to the investor side and launch X Venture Holdings,” Henry explained.
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Since its founding two years ago, X Venture Holdings has focused on early-stage startups, deploying committed capital into various sectors across Southeast Asia. Henry highlighted that the lack of access to capital in markets like Myanmar motivated him to give back and help build an ecosystem for entrepreneurs. “In Myanmar, I saw many young, energetic founders, but they didn’t have the necessary support to get their businesses off the ground. I wanted to contribute to changing that and help create an enabling environment,” he added.
Challenges in Raising Capital and Launching a Fund
Transitioning from corporate investment strategy to setting up a venture capital firm came with its own set of challenges. Henry outlined the complexities of raising capital and managing a fund, particularly in the fragmented regulatory environments of Southeast Asia. “For a fund manager coming from Myanmar, setting up a regional fund was both exciting and challenging. One of the key hurdles was attracting limited partners (LPs), who provide the necessary capital for investment. Legal and tax considerations were crucial, especially when you’re dealing with cross-border investments,” he said.
Henry emphasized the importance of selecting the right jurisdiction for registering capital to ensure smooth fund transactions. “Understanding the regulatory, banking, and taxation requirements of each market is critical. For example, when deploying funds from Singapore to Cambodia or Myanmar, you need to ensure that all regulatory frameworks align to facilitate a seamless transfer of capital,” he explained. Maw added that research into legal frameworks and banking regulations is vital for both venture capitalists and their LPs to understand the broader investment strategy.
He also discussed the challenge of opening bank accounts in multiple jurisdictions. “If you’re deploying funds from a market like Singapore, the requirements to move money into countries like Myanmar or Cambodia can be quite different. It’s an essential aspect of venture capital that often gets overlooked,” Henry noted.
Portfolio of Investments and Market Opportunities
X Venture Holdings currently has a portfolio of five companies, two of which are tech startups—one in Myanmar and one in Cambodia. These companies are focused on providing virtual reality (VR) and artificial intelligence (AI) marketing solutions for businesses, and Maw is optimistic about their growth potential. “These startups operate in very dynamic, buzz-worthy sectors. There’s a lot of excitement around VR and AI, and they’re well-positioned for growth,” Henry said.
Beyond technology, X Venture Holdings has invested in the entertainment industry, particularly in talent management, events, concerts, and festivals. “Our entertainment investment focuses on promoting events and talent, which has been a rewarding experience,” Henry said. The firm has also invested in a logistics company based in Cambodia, which Henry described as a promising venture. “The Cambodian logistics company we’ve invested in has been great to work with. The founders are passionate, and the market has a lot of untapped potential,” he explained.
Another key investment for X Venture Holdings is a learning and incubation platform, which Henry founded himself. “This platform is designed to help entrepreneurs and support the broader startup ecosystem. It’s a project I’m particularly proud of because it aligns with my goal of creating an enabling environment for founders in the region,” he noted.
When comparing the investment environments of Cambodia and Myanmar, Henry pointed out key regulatory differences. “Setting up a company in Myanmar is quite different from Cambodia. In Myanmar, founders often lack basic information, so the support we provide is more fundamental. In Cambodia, founders are generally more informed, and we can focus on more technical aspects,” he said. Despite these challenges, Maw remains optimistic about the growth prospects in both countries. “Both markets are relatively similar in terms of culture and opportunities, but with unique challenges that make investing exciting,” he added.
The Future of Venture Capital in Cambodia and Myanmar
Looking to the future, Henry is raising a second fund with slightly larger ticket sizes and an expanded focus beyond Southeast Asia into East Asia. “We’ve deployed all capital from our first fund, and now we’re in the process of raising Fund 2. We’re building a pipeline of investments, and there’s a lot of excitement around the next phase of growth,” he said.
As for the perception of Myanmar and Cambodia among investors, Maw emphasized the long-term potential of these markets. “The key selling point for investors is the long-term potential. Both markets have relatively low starting points, but that means there’s significant room for growth. However, you need to be prepared for downturns and have contingency plans in place, particularly in markets like Myanmar,” he advised.
Reflecting on his personal journey, Henry shared that one of his greatest accomplishments in 2024 was raising and deploying capital across five diverse startups. “Many people have ideas, but executing them is different. The real work starts after you deploy capital, and building relationships with founders across different sectors has been incredibly rewarding,” he concluded.
Henry also touched on his passion for travel blogging, which allows him to stay connected with the startup scene across Southeast Asia. “Traveling and meeting new people is something I enjoy—it’s a great way to keep a finger on the pulse of the entrepreneurial landscape,” he said. While the greatest piece of advice given was to always keep an open mind.
