With venture capital investments setting a record in 2021, we are delighted to have Co-Founder and Managing Partner of 1982 Ventures, Scott Krivokopich in this conversation with our Co-Founder and Chief Investment Officer of Helicap, Quentin Vanoekel to share with us their thoughts on the outlook of 2022 for alternative investing.
As Managing Partner at 1982 Ventures, Scott is responsible for setting the investment and deal execution strategy, and manages overall operations. He previously was a Principal at tryb Group and led the Investments team. He led investments into First Circle, leading digital SME lender in the Philippines, Asia Collect, a regional digital debt collection services, and supported the team in a growth equity deal, Chinsay, global enterprise technology SaaS.
More about Scott:
- Director and Office Head of Moore Stephens, led corporate finance and CFO services practice in Shanghai
- Started career in PwC, New York (Fixed Income and Credit Group, modeled fixed income derivatives and other sophisticated credit products)
- Degree in Finance and Investments from Baruch College and is a Certified Management Accountant
- Previously served as Board Treasurer and Executive Committee member for the Benelux Chamber of Commerce in Shanghai
1982 Ventures is a venture capitalist based-in Singapore with experience leading and executing multiple fintech deals in the region and are well networked with on-the-ground insights and access to key decision makers.
Recently, they have also contributed their insights to UOB’s Fintech in Asean Report 2021.
Alternative Investing: Outlook 2022
Edited Conversation Summary
Recovery in Southeast Asia provides many opportunities for investors
“COVID cases are spiking but this new variant has minor symptoms. Experts suggest that the end is in sight and this is very encouraging for everybody, including investors looking for opportunities.” – Quentin
“We’re not in severe lockdowns. The idea of lockdowns is now not as popular as it used to be. We probably have more work to do on vaccinations but businesses are open. Folks are forced to get on with it, especially in Southeast Asia.”-Scott
A bright outlook for private equity and debt in the FinTech segment
With many Fintech opportunities in Equity, Digital banking will be the most prominent
“We see on the equity side, there’s so much opportunity. There’s just so much that needs to be done. 2022 is probably going to be the year of digital banking in Southeast Asia.” – Scott
Just over two years ago, the Monetary Authority of Singapore (MAS) announced four successful digital bank applicants and they could be set to launch their services this year. Digital banking services in Indonesia with seven digital banking licenses is getting on fast. The Philippines had a bit of a head start with their first few digital banks that launched a little more than a year ago.
Venture capital is set for an upward trend
“The first trend is really about increased funding from VCs.” – Quentin
The funding in Southeast Asia has jumped more than three times when you compare the first nine months of 2021 with the full year of 2022. Global funding to private companies in January 2022 clocked in $61 billion, the fourth month above the $60 billion market in the preceding 12 months.
Startups enjoy more financing options than ever
With more VC funding, more opportunities for lenders are being created. Loan book financing, receivable financing, revenue-based financing, are all private credit segments that continue to benefit from such an environment alongside venture capitalism.
Regulators spur innovations forward
The financial industry is one of the most comprehensively regulated industries and technology will strain domestic and international regulatory frameworks. With deliberate reformation, increased regulation actually helps the market to grow and mature. Singapore has come up with a Fintech Regulatory Sandbox and we also see Indonesia tightening its new regulatory framework.
“A lot of folks think more regulation is just more red tape. But actually, we see that when a regulator steps in, it creates more regulation that’s actually adapted to help the market grow and mature.” – Scott
Words of Guidance for 2022
“Private investments are not as liquid. For a portfolio according to your risk profile. Understand if you can wait it out or stomach those risks. If you can, the rewards are attractive!” – Quentin
“Best investors in the early stage take a long view and look at where the companies are headed 5 years, 10 years, 20 years. Ask questions like – is there going to be a market for this? Is this management team going to be the team that can get it to the milestone and beyond? Investing in the early stage is really a strategy.” – Scott