Episode 684: Venture Capital 101: Why VCs are backing other startups and not yours - E684 - BRAVE Southeast Asia Tech: Singapore, Indonesia, Vietnam, Philippines, Thailand & Malaysia Startups, Founders & Venture Capital VC (English)

What does it actually take for a venture capitalist to invest in your startup? In this masterclass episode of the BRAVE Southeast Asia Tech Podcast, Jeremy Au breaks down the hidden mechanics of venture capital, how VCs evaluate founders, and the brutal math behind finding the next billion-dollar unicorn.

Whether you are building the future in Singapore, Indonesia, Vietnam, or beyond, understanding the VC playbook is critical. Jeremy explores the history of startup funding, the massive difference between private equity and venture capital, and why the tech industry operates on a "power law" where a few Olympic-level outliers take 80% to 90% of the market. We also dive deep into the Startup Financing Cycle—from surviving the "valley of death" with friends and family, to raising money from angel investors, scaling with institutional LPs, and ultimately reaching an IPO

If you are an entrepreneur, an operator, or just looking to understand how smart money moves in Southeast Asia and the globe, this is your blueprint.

00:00 Introduction: How VCs Evaluate Unicorn Potential

01:17 The Father of Venture Capital: Georges Doriot

02:00 From Minicomputers to Microcomputers: The DEC Story

03:07 The Financial Ecosystem: Private Equity vs. Venture Capital

04:54 The Power Law vs. Normal Distribution

07:22 Why Meta and TikTok Dominate the Market

08:42 Case Study: Sequoia Capital's 50x Return on WhatsApp

09:43 How a VC Fund is Structured: GPs, LPs, and the 2/20 Rule

11:06 Who Are Limited Partners (LPs)?

13:26 The Startup Financing Cycle: Surviving the Valley of Death

14:39 Angel Investors, Early-Stage VCs, and the Path to IPO