Southeast Asia’s old-money tycoons hunt next tech unicorn

Moguls from Thailand’s Dhanin Chearavanont to the Philippines’ Lance Gokongwei are looking to ride a wave of surging valuations for start-ups

Venture backers made a record 393 deals in the first half of 2021, raising US$4.4 billion by investing in start-ups across Southeast Asia

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Dhanin Chearavanont, head of Thailand’s wealthiest business dynasty, is among the Southeast Asian moguls whose holding companies, family investing arms and other vehicles are either ploughing millions of dollars directly into promising companies or setting up venture capital funds. Photo: Forbes

Published: 2:35pm, 18 Oct 2021

Some of Southeast Asia’s old-money tycoons are boosting investment in technology start-ups, looking to ride a wave of surging valuations as they seek to counter the fallout of the pandemic on businesses ranging from retail to hospitality and manufacturing.

Holding companies, family investing arms and other vehicles of moguls from Thailand’s Dhanin Chearavanont to the Philippines’ Lance Gokongwei are either ploughing millions of dollars directly into promising companies or setting up venture capital funds. Partnering with Silicon Valley venture capital firms is also gaining popularity.

With the flurry of investments, these traditional bricks-and-mortar business empires are also transitioning to a new world of e-commerce and digitisation, paving the way for fresh revenue streams after being crippled by months of lockdowns and travel restrictions. The pivot has gained even more urgency under a new crop of leaders – in some cases younger, third-generation heirs.

“The universe of family money in Southeast Asia has become very alive to what technology and tech investments are bringing because of recent start-up successes,” said Vishal Harnal, managing partner of 500 Start-ups Southeast Asia, which was an early investor in ride-hailing giant Grab and online marketplace Carousell. “There’s a lot more family money coming in to chase that, and the pandemic’s accelerated that race.”

The conglomerates, which have helped power Southeast Asia’s economies for decades, are now facing some tough challenges as governments still battle to contain Covid-19 infections. The Asian Development Bank last month slashed its 2021 growth outlook for the region to 3.1 per cent, saying “developing Asia remains vulnerable” to the pandemic.

Although Covid-19 has decimated tourism and retail in Southeast Asia, the region is home to some of the fastest-growing internet markets. Venture backers made a record 393 deals in the first half of 2021, raising US$4.4 billion by investing in start-ups across Southeast Asia, according to separate research by Cento Ventures.