Information on the Target

Scott Krivokopich, the Managing Partner of 1982 Ventures, co-founded the firm in Singapore in 2019, focusing on early-stage fintech projects in Southeast Asia. Together with Herston Powers, he recognized a significant gap in the venture capital market for fintech investments in the region. Their firm aims to target seed-stage funding for startups that possess scalability and sustainability, ultimately driving impact while ensuring superior returns on investments.

Scott highlights that Southeast Asia has witnessed rapid changes in the fintech landscape over recent years, yet there remains a considerable void in venture capital interest. Many existing venture capitalists have shifted their focus from seed and angel rounds to later-stage funding, which inadvertently leaves promising early-stage fintech companies underserved.

Industry Overview in Southeast Asia

The fintech industry in Southeast Asia is currently undergoing significant transformation, with a rising demand for innovative financial solutions across the region. For instance, while Indonesia recorded an e-commerce market size of $21 billion in 2019, a staggering 70% of its transactions still relied on cash-on-delivery payment methods. This scenario points to enormous untapped potential for fintech solutions that can provide digital payment options.

As young, urban populations grow—approximately 70% of Southeast Asia's population is under 40 years old—traditional banking services have struggled to meet the needs of these consumers. The lack of banking infrastructure provides ample opportunity for fintech startups to bridge this gap. Countries such as the Philippines and Vietnam are also increasingly attracting attention from investors due to their large, underserved populations and growing economic participation.

However, various challenges persist within individual countries. For example, Indonesia’s fintech market faces a shortage of talent, resulting in companies often outsourcing to tech specialists in neighboring countries. The emergence of successful local companies, like Gojek and Tokopedia, is beginning to change this landscape by cultivating local talent and fostering an enriching startup ecosystem.

Moreover, the payment sector remains the most favored area for capital investment, featuring a strong network effect. Though the frenzy among payment companies has somewhat receded, the sector still presents many opportunities, especially in improving systems for reconciliation and transaction processing.

The Rationale Behind the Deal

The investment approach adopted by 1982 Ventures hinges on identifying early-stage fintech companies that exhibit potential for scalable growth. The team believes that with the increasing digitization of finance in the region, there is a critical need for solutions that can cater to the evolving financial behaviors of Southeast Asian consumers. Their strategy is to engage with founders who possess the foresight and resilience needed to navigate the unpredictable market landscape.

By focusing on seed-stage investments, 1982 Ventures aims to cultivate an array of fintech innovations that can thrive in an environment still ripe with opportunities. This forward-thinking perspective reflects their commitment to generating substantial returns through impactful investments.

Information About the Investor

As mentioned, Scott Krivokopich holds the position of Managing Partner at 1982 Ventures. Prior to establishing this venture capital firm, he served as the Director of Investments at TRYB Group, a Singapore-based venture capital firm with a keen focus on Southeast Asian fintech. His diverse experience in both venture capitalism and the financial consultative sphere has equipped him with a unique lens through which to evaluate potential investments.

Scott emphasizes an ethical investment philosophy, asserting that sustainable and responsible business practices are essential to long-term success. His past career also includes a significant role at a global accounting and consultancy firm, giving him an extensive understanding of market dynamics and investment strategy.

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1982 Ventures represents a proactive approach to early-stage investment in Southeast Asia’s fintech sector, demonstrating a commitment to addressing the market's substantial gaps. Given the region's growth potential, investing in fintech at the seed stage seems both timely and advantageous. The focus on scalable and sustainable business models positions the firm to capitalize on long-term profitability.

Despite the challenges posed by recent global events, such as the pandemic, Scott and Herston’s strategy of rigorous evaluation and partnership with visionary founders suggests a robust investment thesis. Their attention to market needs and founder capabilities indicates a thoughtful and dynamic investment strategy.

Additionally, Scott’s perspective on avoiding high-risk models, such as predatory lending, lists them as discerning investors. Thus, their focus on creating value-driven businesses that align with societal needs only strengthens the rationale for investment in this space.

Overall, the approach taken by 1982 Ventures situates them not only as savvy investors but as key players that may foster sustainable growth in Southeast Asia's fintech ecosystem, making them a firm to watch for future investment opportunities.

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