HeartWare Singapore

Discipline is the name of the game as startup valuations soar

The wave of exuberance in South-east Asia has cast the spotlight on startup valuations, with some industry players predicting a correction in 2020. Christopher Quek, managing partner of VC firm TRIVE, called valuations “over-rated”.

“It’s no celebration for those who raised another round of funding, unless there is a clear growth in earnings,” said Mr Quek, who has passed on deals in 2019 that he found had unsensible valuations.

Many new categories of startups have been created, he said. “While these startups have great potential to impact society positively, the ability to scale and shift the product from novel to mainstream is very challenging. I have learnt not to get involved in things which do not have immediate product-market fit, as it will be difficult for the startup to survive in the long term.”

This article appeared on The Business Times. Read the full article: https://www.businesstimes.com.sg/garage/discipline-is-the-name-of-the-game-as-startup-valuations-soar