A91 Partners this morning banged a $665 million fund down on the table. That's not just impressive, it's a statement. A reminder that patient capital, committed to creating lasting enterprises, is music to ears. The bigger question isn’t simply why A91 won. It's: can this Indian success story be the blueprint for Southeast Asian VCs, particularly right here in the Philippines?

Local Pride, Global Stage

We all know the narrative: Silicon Valley innovates, the world copies. What if the best innovation is just working to fit the local reality? Picture this if the next great vc success story is from southeast asia. Perhaps it can, but only by deeply understanding the area’s unique subtleties rather than merely recreating the Sand Hill Road model. This region is overflowing with entrepreneurial activity. It has a rapidly expanding middle class clamoring for solutions tailored specifically to its new, rich needs.

The key to A91’s success is its focused investments in technology, fin-tech, and consumer markets. This strategy is not that different from the strategies employed by most other funds.

The Philippines, with its vibrant culture and entrepreneurial drive, is ripe with potential. We have so much home-grown talent! Are we truly fostering it? Most importantly, are we delivering our startups the patient capital and strategic guidance necessary to compete on a global stage? Or are we just preoccupied pursuing the new bright shiny Silicon Valley object?

Silicon Valley or Southeast Asia?

Look, I'm not knocking Silicon Valley. They've built something incredible. But the "copycat" approach? I'm not so sure. Southeast Asia isn't Silicon Valley. We are all facing different challenges, different opportunities, and working in different cultural contexts. A91's approach, focusing on building enduring businesses, not just chasing quick exits, feels like a more sustainable model for our region.

  • Silicon Valley Model: Quick exits, high-growth potential, aggressive scaling.
  • A91 Model: Patient capital, building enduring businesses, sustainable growth.
  • Southeast Asian Needs: A blend of both, with a focus on local adaptation.

More than ever, I perceive a need to push back against the idea that the prevailing narrative is that only SV-style VC models can work. Shouldn’t we instead be looking inwards, playing to our strengths, and developing a VC ecosystem that’s Southeast Asian to the core.

Next Chapter For SEA VCs?

So, what's next for Southeast Asian VCs? Should we each pack up shop and focus on being the best mini-Silicon Valley that we can be? I hardly think so. An approach that I think offers much brighter prospects is one aimed at a more localized, culturally specific basis. That means:

  • Understanding the local market: Investing in solutions that address specific regional needs.
  • Building strong relationships with founders: Providing mentorship and guidance, not just capital.
  • Embracing patience: Recognizing that building enduring businesses takes time.

Now, imagine a Filipino VC firm that is just as plugged into the local community. This firm knows the cultural context and puts money into startups addressing actual issues for actual Filipinos. Now that’s the kind of success story that warms the cockles of my heart.

A91's success is certainly inspiring, no doubt. And their partial exits from Atomberg and Pushp, and Digit Insurance going public, are evidence that their approach works. The real blueprint for Southeast Asian VC success isn't just about replicating A91's strategy; it's about adapting it to our unique context, embracing our local talent, and building a VC ecosystem that is truly our own. It's not about copying; it's about creating. And that's something worth getting excited about.

We already see it in our region. Businesses such as Grab and Gojek are extremely successful because they’ve adapted their business models to serve the specific demands of Southeast Asian consumers. This success is a testament to the extraordinary potential of local adaptation. A91’s success, coupled with these regional examples, suggests a powerful combination: patient capital backing locally-relevant solutions.

The opportunity is there. The talent is there. Are we bold enough to seize it? Let's not just celebrate A91's success. Let’s take it and use it as a spark to develop our own. Together, let’s nurture a Southeast Asian VC community that is as colorful, dynamic, and antifragile as the region we all call home.