South East Asia's Mega Blockchain Conference
Interview with Christian Mischler, Partner at Swiss Founders Fund.
Q. Where do VCs investin this crypto bear market? And what do you actually see in a company before investing Millions of Dollar?
• Swiss Founders Fund follows the same investment criteria, whether it’s a blockchain company or a startup using a different technology.
• We assess (among other factors) the team composition & ability to execute, the value proposition & productmarket fit, the market potential, the competitive landscape, the go-to-market strategy, the tech stack, and traction.
• Blockchain technology is a) an alternative way to address real-life problems that previously were hard to solve, and b) an ecosystem in itself that has potential to develop and capitalize on.
Q: Do you think thatthe market will pick up in 2019?
A: Swiss Founders Fund believes that throughout 2019, solutions that contribute to the development of the blockchain ecosystem bear more immediate potential than solutions that address real-life problems. We need a trong and stable tech infrastructure as a foundation to build scalable products. We also need regulatory and legal frameworks to operate in, which will also take time to develop and release.
Q: Looking atthe current scenario, do you think thatthe Blockchain investment will surplus in 2019?
• It’s very hard to predict. We are used to make illiquid investments, and we know that the life of a startup is the one of a rollercoasters. The intrinsic value of investments can rise significantly over time, but there are often also corrections or at times complete writeoffs. We try to assess the potential of a startup thoroughly before making an investment and then back the team beyond financial means once we are part of the journey. Swiss Founders und invests long term and tries to contribute to the startup’s success wherever possible.
• Markets will stay volatile. The market is a basket of early stage companies, many of which raised large amounts of money at incredible valuations. Corrections in valuations are inevitable but thanks to the large funding of these startups, they will be able to develop products that eventually will deliver value. This may take some time and the ones who did not manage their treasury well over 2018 might struggle to deliver against their timeline, as funds will get tight. However, I remain confident that the ecosystem and the asset class will be stronger in every aspect after this current crypto winter. The overall market will recover in terms of total capitalization, it’s only a matter of time and patience.