As a prominent venture capitalist, Jixun Foo, Senior Managing Partner at Granite Asia, has shared a wealth of knowledge and experience over the years.[1][2] His insights offer valuable guidance for entrepreneurs and investors alike.
On Investment Philosophy and Strategy
- Conviction matters more than consensus.[3] In the world of venture capital, it's crucial to have faith in your own analysis and not be swayed by popular opinion.
- Prioritize founder quality and relationship continuity over short-term momentum.[3] A strong, long-term relationship with a talented founder is more valuable than chasing fleeting market trends.
- Back people who shape the future, not just ride it.[3] Invest in visionary entrepreneurs who are creating new markets, not just capitalizing on existing ones.
- Embrace transformation.[4] The venture capital landscape is constantly changing, and firms must adapt their strategies to remain competitive. Foo's firm, Granite Asia, is moving towards a multi-asset approach to better support entrepreneurs.[4]
- Look for global scalability. A key consideration is whether a startup's technology can be scaled on a global level, even if it starts small in a single country.[5]
- Focus on human value, not just monetary value.[5] The most successful startups create real, tangible value for people.
- The team is paramount, sometimes even more so than the technology. A strong and motivated management team can pivot and find success even if their initial technology doesn't work out.[5]
- Invest in companies that are creating new and innovative solutions. Foo has a track record of backing companies that have disrupted their respective industries.[1]
- Don't be afraid to invest in competitive markets. Foo has made successful investments in crowded spaces like ride-sharing (Didi, Grab) and e-commerce (Alibaba).[6][7]
- Understand the importance of strategic mergers and acquisitions. Foo has played a critical role in several major tech mergers in China, such as Youku-Tudou and Baidu/Qunar.[6][8]
Advice for Entrepreneurs
- Let your passion lead you through the exciting unknown ahead and the inevitable challenges.[9] Passion is the fuel that will sustain you through the ups and downs of the entrepreneurial journey.
- Know yourself: know your strength and your limitations.[9] Self-awareness is critical for success. Understand what you're good at and where you need help.
- Define your own path.[9] Don't follow a well-trodden path just because it's there. Forge your own way based on your unique strengths and vision.
- If you want to achieve something bigger than yourself, you need to build a team around your limitations.[9] The best founders hire people for their strengths to complement their own weaknesses.
- Find your own community.[9] Surround yourself with people who will support you, challenge you, and celebrate your successes.
- Every decision we make in life is a wager with our time invested in something somewhere, making tradeoffs and sacrifices.[9] Think of your career and life choices as venture investments.
- Success will be exponentially sweeter when you have people to share it with.[9] The relationships you build along the way are just as important as the destination.
- Be resilient. Entrepreneurs need to be able to pick themselves up after failure and keep trying.[10]
- Focus on creating real human value.[5] Don't get caught up in vanity metrics; concentrate on making a meaningful impact.
- Be prepared for a painful journey.[5] Starting a company is incredibly difficult and requires immense perseverance.
- Don't be discouraged by rejection. You will hear "no" far more than you will hear "yes," especially when fundraising.[11]
- Listen to advice, but make your own decisions. You know your business better than anyone else.[11]
- Don't be afraid to start small. Many successful companies began with a narrow focus and expanded over time.[5]
- Focus on user traction. If you can demonstrate that people want and are using your product, the money will follow.[5]
- Be a good leader. A successful entrepreneur must be able to inspire and motivate their team.[12]
On Market Trends and Opportunities
- AI and robotics are significant areas of opportunity in Asia, particularly in logistics, manufacturing, and healthcare.[3]
- Energy transformation is another key area for investment in Asia.[3]
- The consumer landscape in Asia is shifting, creating opportunities for companies that can cater to evolving tastes and patterns.[3]
- Japan is an emerging market with a growing appetite for innovation.[3]
- Founders in Asia are becoming more seasoned, resilient, and globally-minded.[3]
- Decoupling and deglobalization have made capital more expensive, creating a tougher environment for venture capital.[4]
- There is a growing trend of Chinese founders looking to restructure or relocate their businesses to other parts of Asia.[4]
- The rise of the Asian economies is a major driver of innovation and opportunity.[9]
- The internet fever that started in Silicon Valley has spread globally, creating a more interconnected and dynamic tech ecosystem.[9]
- Innovation is no longer confined to Silicon Valley; it is happening all over the world.[7]
Learnings from a Venture Capital Career
- A career in venture capital is a bit of a twist and turn.[7] Foo started as an R&D engineer before finding his way into the world of investing.[7]
- Sometimes a stepping stone is necessary to get to your desired career. For Foo, working at the National Science and Technology Board of Singapore was his entry into the venture capital world.[7]
- The ability to identify and nurture talent is a key skill for a venture capitalist. Foo has a long history of backing successful entrepreneurs.[8]
- Building a strong network is essential. Relationships with entrepreneurs, investors, and industry experts are invaluable.
- A deep understanding of different markets is crucial for a global investor. Foo has extensive experience investing across Asia and has highlighted the unique opportunities in various countries.[3]
- Patience is a virtue. It can take many years for an investment to come to fruition.
- The ability to facilitate strategic partnerships and mergers can create significant value.[8]
- It's important to stay curious and continuously learn. The tech industry is constantly evolving, and investors need to keep up with the latest trends.
- Success in venture capital is a team sport. The collaboration and support of partners and colleagues are vital.
- Giving back to the community is an important responsibility. Foo is involved in various organizations and is passionate about mentoring the next generation of entrepreneurs.
- A background in engineering can provide a strong foundation for a career in tech investing. It teaches you how to solve real-world problems.[3]
- Early exposure to different innovation ecosystems can be incredibly valuable. Foo's time in the United States and China shaped his global perspective.[3]
- A track record is built on backing people who shape the future.[3]
- Adaptation is key in the dynamic world of venture capital. The recent split of GGV Capital into Granite Asia and Notable Capital reflects this need to evolve with market dynamics.[13][14]
- Venture capital is not just about providing capital; it's about being a true partner to entrepreneurs.[4]
Sources
