"So that's why if you have 1 billion to invest, we're not expecting the same return as if you invest 10 million. At that time, when all this money flowed to Southeast Asia, people there thought, "Oh, we made it. Now the world is looking at us. We're finally a good ecosystem.' Everyone was ready to invest in us, but that was just the tide, right? And when the tide recedes, the first place the money will leave is Southeast Asia because it's not offering the best returns. So, the money is going out, and I don't think it's coming back anytime soon. People shouldn't expect investors to be as aggressive as they were. Lastly, great companies will always raise capital. The top ones will always find their way, so there's no issue for them. The challenge is for the ones just below them. It will be very difficult for those companies. Some will have to become much more capital-efficient, for sure." Fresh out of the studio, Arnaud Bonzom, founder of Black Mangroves and angel investor, engages in a lively discussion with our host about the entrepreneurial and venture capital landscape in Southeast Asia for 2024. Arnaud shares his insights on the evolution of late-stage funding and the resetting of expectations in the region’s venture capital scene. He also offers valuable advice to founders on how to navigate the challenging fundraising climate and what success could look like for the region in the coming years. You can find Arnaud Bonzom at LinkedIn: https://www.linkedin.com/in/arnaudbonzom/ and X (formerly known as Twitter): https://x.com/ArnaudBonzom? Audio Episode Highlights: [0:44] Quote of the Day by Arnaud Bonzom #QOTD [2:09] Arnaud’s Reflections on Southeast Asia Since 2018 [5:28] Southeast Asia’s Economic Challenges [6:15] New Outlook for the Region’s Startup Ecosystem [10:37] Lessons from India’s B2B Market [14:31] How Venture Capital Works in Southeast Asia [16:52] Over-Optimism in Southeast Asia’s VC Landscape [24:27] Challenges in Attracting Foreign Investments [27:38] The U.S. as the Biggest Accessible Market [30:29] Market Segmentation in Asia Pacific [35:44] IPO Slowdown and M&A Challenges [37:59] Zombie Companies in Southeast Asia [39:14] The One Thing Arnaud knows about the SEA ecosystem that very few do [41:28] Explaining DPI (Distributions to Paid-In Capital) [47:48] Timing in Venture Capital Investments [51:48] Advice for Founders in 2023-2024 [53:33] Bottlenecks in Southeast Asia’s Startup Ecosystem [56:40] What does great look like for the Southeast Asia ecosystem? [58:45] Crypto Companies in Southeast Asia [60:44] Final Thoughts and Future of Southeast Asia’s Startup Ecosystem [61:10] Closing Podcast Information: Bernard Leong hosts and produces the show. Proper credits for the intro and end music: "Energetic Sports Drive" and the episode is mixed & edited in both video and audio format by G. Thomas Craig Analyse Asia Main Site: https://analyse.asia Analyse Asia Spotify: https://open.spotify.com/show/1kkRwzRZa4JCICr2vm0vGl Analyse Asia Apple Podcasts: https://podcasts.apple.com/us/podcast/analyse-asia-with-bernard-leong/id914868245 Analyse Asia YouTube: https://www.youtube.com/@AnalyseAsia Analyse Asia LinkedIn: https://www.linkedin.com/company/analyse-asia/ Analyse Asia X (formerly known as Twitter): https://twitter.com/analyseasia Analyse Asia Threads: https://www.threads.net/@analyseasia Sign Up for Our This Week in Asia Newsletter: https://www.analyse.asia/#/portal/signup Subscribe Newsletter on LinkedIn https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7149559878934540288