Tin Men Capital

Tin Men Capital Pte Ltd manages Tin Men Fund I - a venture fund that focuses on developing the Enterprise Technology Ecosystem in Southeast Asia. We target B2B companies at a pre-A or Series A stage, offer extensive hands-on operations value-add to support founders and build partnerships with operating businesses in SEA.

Co-Founder, Partner

The Guestbook

Disrupting the hotel booking & loyalty businesses

https://angel.co/theguestbook

Board Member, Seed Investor

Puma Energy

Head of M&A and Investments, Asia Pacific & Middle East

Morgan Stanley

Morgan Stanley Commodities Trading Desk
Head of investments in Asia for commodities trading desk.

Vice President

Thomas H Lee Partners

Evaluated, executed and managed leveraged buyout investments for $8Bn private equity firm.

Clearwater Capital Partners

Evaluated potential investments and managed portfolio for $650MM Special Situation and Distressed Debt fund focused on investments in Non-Japan Asia - India, Korea, China, Indonesia and Thailand. 



Summer Associate

Temasek

Researched and recommended investments in financial service sector for $60Bn private equity firm.

Summer Associate Director

Chicago Mercantile Exchange

Senior Analyst, Business Development: Evaluated investments, structured agreements and formulated negotiation strategies.  Represented CME in meetings with prominent officials from Asian partners and regulators.

Senior Analyst

Analyst

After more than two decades of investing...
I believe we’ve found the next big hidden opportunity:


Most LPs exploring venture capital funds as an investment vehicle are concerned with media sentiment.

"Capital at risk"
"Growth at all costs"
"Long-term"

The numbers don't lie. If well managed, venture investing reaps very attractive ROI versus most other alternatives.

And, you won't even need to find the next unicorn to do that.

Today, sustainable, sticky growth is the holy grail for any investment office looking for longevity with attractive returns.

Some years ago my partner, Murli, and I started Tin Men Capital in pursuit of that.

Our fund's unique focus:
- B2B and Enterprise Tech Startups
- With a strong focus in Southeast Asia
- Who are in Series A stage and beyond

Our thesis:
SouthEast Asia's legacy industries are still largely undigitised.
B2B tech in large TAM > High-gross margins > Sticky recurring revenue > Quicker pathway to profitability

We've already proven that these ideas our sound with measured results from our inaugural fund.

Family offices and institutions that work with us appreciate our ethos in running the fund:

⚙️ DISCIPLINED DEAL-SOURCING : 
Carefully scrutinising every deal for the right valuations, founder mix, and expertise. No exceptions.

⚙️ HIGH-CONVICTION: 
We only invest in a handful of teams that apply. Sounds counterintuitive, but It's seeing above-market returns with below-average failure rates.

⚙️ EXPERIENCED B2B OPERATORS AT THE HELM: 
Murli and I bring collectively more than 40 years of experience in investing and management, having sat on boards and brokered large M&As. Our thoughts have also been featured on TechInAsia, Peak Magazine, and more.

Some of our portfolio companies:

🔵 Hubble (Series B)
Resource management platform for parties in the construction value chain to track and optimise processes

🔵  Zipline (Series A)
Australia's #1 workplace management platform for the aged care and health sectors

🔵  GlobalTix (Series A)
Software and marketplace software for tourism attraction operators and travel product distributors 

We’re always on the lookout for new partners and startups to join us.

If keen to chat, shoot me a DM/email or head over to our website to drop us a line.

We recently invested $2.7M into this duo.

How we found them was purely by chance.

During an event, one of our interns struck up a conversation with them.
They immediately captured our interest.

(Lenard) in particular left a strong impression.

When we met, it was hard not to see the green flags:
🟩Strong business acumen and a good grasp of tech
🟩Clear understanding of their target industry
🟩Clarity in terms of go-to-market strategy
🟩Curiosity and openness to other POVs
🟩High commitment!

They had a massive idea for a traditional industry:
Using AI-powered video analytics in construction sites and manufacturing plants.

You don’t see many young founders going after industries like this.
It’s not exactly sexy, but it has a strong need.

Such optimistic determination is often overlooked.
Yet it's essential to transform an industry.

Every time we meet the founders, their enthusiasm is infectious.
Extreme passion for their line of work and obsession with the industry.

While the road ahead is still long.
Today, we celebrate their achievements.

My hope is we see more young founders dabble in B2B and underserved markets.
That’s where the opportunities lie and we need all the energy we can get.

Congratulations again to Lenard, Prateek, and the entire Ailytics team!

Have founders you'd like to celebrate too? Tag em’

Jeremy Tan

Backing brilliant B2B founders 🦓 in Southeast Asia | Co-founder at Tin Men Capital | Linkedin Top Voice

We just made another exciting investment (in another AI startup)

But it’s not your typical one.

From the moment we met Wei Zhuang and Prateek Manocha,
We knew there was something special about their vision at Ailytics

Their proposition grabbed our attention right away:
-Video analytics solutions for heavy industries in Asia. (very under-served)
-To reduce worksite accidents and occupational hazards while optimising process efficiency and ROI

Ailytics does what we call ‘scenario-based AI-powered video analytics’.
A mouthful, but here’s what it can do:
🔸Protection against security lapses
🔸Real-time insights of safety hazards
🔸Boosted productivity metrics

Remarkably, their tech can even work in rugged outdoor environments with existing low-res cameras.
Ailytics can derive 3D dimensions from a 2D video feed of a SINGLE camera and calculate danger zones.
An ideal fit for construction sites and manufacturing plants.

Today, heavy industry companies face:
❌Rising labour expenses in a competitive market
❌Costly delays and revenue losses
❌Stricter safety regulations and hefty fines for infringements

With AI + Video analytics in real time = Reduced downtime and increased productivity.

When you dig in, it matches our thesis squarely:

✅ Great Traction: Already deployed in over 70 projects and integrated with more than 1000 cameras across four countries and various industry verticals.
✅ Customer Value Delivered: Customers report a 50% decrease in manual inspections and a sevenfold increase in hazard detection post-implementation.
✅ Forward-thinking founders: Wei Zhuang and Prateek embody determination, clarity, and a commitment to excellence.

It looks like we’re making two AI investments quickly in 2024.
Under the surface, these are strong B2B cases that we believe will bear fruit in the region.

Delighted to welcome another Zebra 🦓 to Tin Men Capital’s portfolio founders!

Co-founders won't stay forever. What'll you do when they leave?

You need to ensure you're protected BEFORE it happens. A guide:

A founder's departure doesn’t mark a startup’s shutdown. 

Use this guide as a starting point and work with a good lawyer to build guard rails while times are good.

What's your experience with vesting?

P.S. Feel free to 'Save' this for future reference or repost it so more founders can benefit!

The 101 Guide to Startup Vesting

I wish the data was more encouraging.

But it looks like we aren’t out of the woods yet.

Q1 2024 still sees sizeable startups shutting down.

As the Fed continues their ‘higher for longer’ agenda, we start to see more things break.

In our region of Southeast Asia, we’ve already seen the layoffs happening.
Recently Google and Tesla have also announced a fresh round of layoffs.

Because of the volatile nature of monetary policy and the unrest in the Middle East,
We could see more pain at least till we get more visibility.

The effects of the easy money, ‘growth-at-all-costs’ era are culminating all at once.

If companies aren’t built to be capital-efficient, it’s a matter of time before the coffers run dry.

Till then I’ll still be on repeat like a broken record:

- Build sustainable income and real business
- Raise at reasonable valuations
- Keep lean, stay flexible
- Embrace the 🦓 way

Buckle up because we’ll be in for a rough ride till things let up.

As usual, great chart from Peter Walker / Carta

Founders: This might not be the advice you're hoping for.

But it's crucial nonetheless.

I regret not putting my foot down when advising a founder I invested in:
He raised at too high of a valuation.

Yes, you read that correctly. Too high.

Raising at an excessively high valuation might seem like a shortcut to success.

But it can lead to more harm than good.
❌Puts undue pressure on the team to deliver outsized returns.
❌Can hinder future fundraising efforts.
❌Sets unrealistic expectations.

A high valuation may seem appealing for now.
But consider the broader implications of valuation being the target:
🔸Taking focus off business building
🔸Misaligned incentives; focus on very short-term growth/ results
🔸Huge disappointment when reality fails to meet expectations

In an industry where "raise more, grow faster" often prevails,
We know this strategy doesn't always lead anywhere.
(i.e. Shopback, Lazada in local context)

In some cases, it leads to unsustainable growth and layoffs that ensue.

It’s like steering a megatonne truck at fast speeds vs a zippy sedan.
You simply will have trouble maneuvering.

As investors, we have a responsibility to steer our portfolio companies in the right direction.
Even if it means delivering tough love.

Don’t set yourself up for unrealistic growth.

Aim for sustainable success instead.
You’ll thank yourself down the line.

Agree?

I’ve noticed a shift in tides in the startup community. 
 
A gap in expectations between startups and VCs. 
 
Especially with the launch of Glasswall,  
Founders are not shy to make their opinions heard. (especially with the anonymity in place) 
And most of them have plenty of grievances. 
 
While the platform is good to keep people honest, it needs to be wielded carefully. 
 
Applying broad stroke across all VCs on the context of treatment from a few is not representative of the truth. 
 
❌ Low ball valuations 
❌ Extended due diligence cycles 
❌ Lack of communication 
❌ Less-than-desirable terms 
 
On the surface it’s something most can relate to. 
 
At the same time, there must be reasons behind it. 
 
At times, it’s really a feature of market cycles. 
 
🟩 When the cycle is good on the up-and-up - founders ask for the sky e.g. attractive terms and valuations. 
🟥 When the cycles taper, VCs pull back and becomes more cautious. 
 
So goes the ebbs and flows of the market. 
 
Especially for new founders in their first cycle, it’s not something they’re used to. 
 
It might be naive of me to imagine, 
But what if both ends could veer toward a balance independent of stages of cycles? 
 
Reasonable valuations, open communication, alignment in goals. 
Perhaps a pipedream in a market ridden with inefficiencies. 
 
I stand by founders who are simply asking to be treated fairly and respectfully. 
 
What we must discern is whether expectations are par and realistic with the current market environment too. 
 
Balance is key.

B2B Founders, don’t let these tough times scare you.

Some of the largest companies, were once on the brink of failing.

🔴IBM went almost bankrupt in the 90s.
🔴NVIDIA only had enough money left for one month of payroll.
🔴General Electric’s stock fell by 42% during the 2008 financial crisis.

And yet, these B2B companies are thriving today.

How did they recover?

🟢IBM
-They hit the reset button.
-Massive restructuring, eliminated non-core businesses, and dived headfirst into software and services.

🟢NVIDIA
-Pivoted from powering video games to manufacturing GPUs and AI applications.
-They focused on market needs, trends, and product innovation.

🟢General Electric
-Made tough calls to weather the storm, including layoffs and divestments.
-Split GE into three independent companies, refocusing efforts on core revenue streams.

Survivorship bias or not, these B2B companies proved one thing:
Bouncing back is not impossible.
But tough calls need to be made - and made quickly.

In our cohort of founders in our portfolio, we’ve seen this happen.

GlobalTix made decisive cuts to expenses and kept key team members to ride the recovery wave growing 400% in 2 years.
Zipline.io up-ended their business model and went from 0-6M in 2 years.

By focusing on core strengths,
Adapting to market needs,
Restarting from the top,
There are ways forward even when things seems bleak.

It’s been difficult for many founders in this period.
Reach out to investors and peers for support.

Survive and thrive.

In 2008, they helped to build Facebook. Later they started a $4B company. 
 
Their pain to streamline workflow became the solution called ‘Asana’. 
 
Today, Asana is worth $4.36 billion. 
Here are the pivotal moments from their startup journey: 
 
💎1. Find your first customers within your range 
 
--While working at Facebook, Justin and Dustin noticed a gap in managing tasks. 
--After introducing their prototype, other teams adopted it quickly into their work routines. 
--They found their initial customers right within their workplace, and became their validation to turn Asana into a company. 
 
💎2. Improve your product for the first few people 
 
--They deliberately onboarded a select group of users for feedback to improve the UX. 
--The biggest obstacle in launching a new product? Educating people about its value. 
--They made early adopters successful through helpful content in the Asana Guide.  
--Early adopters in turn became ambassadors, organically expanding their network to tech firms and startups. 
 
💎3. Market the User Experience, not the Features 
 
--The biggest roadblock in their early journey: Teaching people the habit of using their app. 
--To make their product familiar, Asana ensured early adopters were exceptionally satisfied. 
--These satisfied users later became advocates for Asana, spreading positive word-of-mouth and leading to over 1,200 companies on their waiting list. 
 
💎4. Never stop taking in customer feedback 
 
--Instead of seeking perfection from the start, Asana continuously refine products based on user feedback and evolving needs. 
--Asana's redesign launch around 2015 exemplifies this. 
--Users had a choice between the new and old versions; <1% reverted to the original, indicating the success of the redesign. 
 
--- 
 
The story of Asana underscores the power of identifying workplace pain points and solving them. 
 
It’s all about user-centric improvement, and steadfast dedication to delivering value. 
 
What did you take away from their story?

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VCs bet heavily on the Power law playing out. But, it doesn’t always work.

I’m talking about deploying capital across many (sometimes >25-50) venture investments per fund.
Expecting most bets to fail with the minority that succeed carrying the whole fund. (with outsized performance)

You could call it a 'shotgun' approach.

This works well for markets like the US and India where:
🔸 Large singular markets enable higher probablity of building large companies quickly.
🔸 Thriving IPO market supporting exits of these large companies.

However, both these elements are missing in SEAsia.

Applied blindly at the current stage, it doesn’t always work as well in Southeast Asia.

I’m not the only one who’s tried this and found it’s not ideal.
A different approach to investing, tailored to SEAsia is needed.
Especially if you want to capture more upside here.

Consider a more private-equity style approach to investing.

Some areas to consider for investing in startups in this region in no particular order:

✳️ Capital efficiency. Less reliant on external funding. Less vulnerable to external shocks.
✳️ Need to tackle GTM in countries in the region differently as they have diverse cultures.
✳️ Founders here hate being seen as a ‘lottery ticket’ and want committed backers
✳️ More strategic exits via M&As. Strong interest from neighbours. 🇰🇷 🇯🇵 🇨🇳
✳️ Fewer, high conviction investments (10-15). Focus resources and time.
✳️ You don’t need large outcome to return handsomely to investors.
✳️ Find companies that are fairly valued, not at obscene multiples.

In short:
🔸Increase win ratio by focusing on capital efficient companies with clear pathway to profitability without the perils of winners-take-all dynamics
🔸Further de-risk your bets through dedicated portfolio acceleration
🔸Wins deals not based on valuations but true value-add to founders
🔸Remove reliant on huge outcomes; gear investment towards strategic or financial buyouts

While the Power law may be a tried-and-true approach,
It doesn't always translate as effectively in a market like Southeast Asia.

Made in the USA doesn’t mean it is always going to work.
No one-size-fits-all.

Understanding what you’re investing in and building that conviction pays much better.
At the same time, VCs can afford to give more direct attention to a smaller portfolio.

Retire the shotgun, bring out the sniper.

What do you think?

Still reeling from all the great takeaways at Founders Forum Asia.

This year, I was invited by Founder’s Forum to moderate a panel and share the stage with some brilliant investors and founders. 

(Thanks to Sean and Carolyn)

The topic at heart is the state of capital stack in Southeast Asia.
We discussed far ranging topics from the depth of capital, exits and investment strategies.

Some key take aways:

✳️ Regional ecosystem is till relatively young - reflexive to changes in the US
✳️ Markets are fragmented and there is no regional exchange supporting large exits.
✳️ Probability of building large companies quickly is much lower vs [less fragmented] markets.
✳️ Exit options are more limited without a viable IPO avenue - listing in the US is limited to a few
✳️ Tighter portfolio of conviction and specialist funds tend to work better in the region
✳️ Founders expanding in the region require more hands-on support
✳️ Investors should collaborate to consolidate companies for more scale and better unit economics
✳️ Ecosystem is not yet self-sustaining; need to show exits (distribution)
✳️ Capital freed up from exits can be recycled to help grow ecosystem
✳️ A deep and well-functioning regional exchange is important to support exits (not just for unicorns)
✳️ IPO is not the only exit option. Strategic M&As are rising in the region
✳️ High-time to reset the metric for startup success (unicorn status is too narrow)

--

We have come far along as an ecosystem and this is a base we can build on to mature further.

There is much to celebrate including the growth we are witnessing in SEAsia.

We’ve been in winter for awhile now, give it a bit more time.

The post-event exhaustion also kicked in fairly quickly this time.
Back to my cave before the next event. 💨

Credit goes to my amazing panel of experts: Geetali Iesan Edoardo Henry

📸 : The panel session with some great conversations

When I see this in teams, I know they’ll make it.

It’s about ‘Ownership’.

In some teams, everyone’s always waiting for approvals / direction.
In others, they operate independently and are self-driven.

No prize for guessing which ones move faster.

I see this occurring a lot in high-functioning early-stage startup teams.
When you’re smaller, everyone acts like a Principal. 

It’s really the only way you can get things done quick.

In our team at Tin Men Capital (and as with most VCs), we’re very lean lending to the nature of our business.

I’ve seen first-hand how efficient things get when we have a culture of people taking ownership.

We see this with successful fast-growing tech companies like NVIDIA and Tesla.

As companies grow and there’s more hierarchy and bureaucracy, 
You inevitably have the ‘Principal–agent’ problem.
Where there are various conflicting interests at play.

There’s a lot of tip-toeing, time-wasting niceties and over-delegation.

What’s worked for us are:

✅ Giving everyone a voice in terms of key decision; get their buy in.
✅ Regularly giving people direct accountability and responsibility.
✅ Ensuring they feel a sense of belonging and knows they’re not a cog in a machine.
✅ Recognising success no matter how small.
✅ Key mentoring and support structures set in place.

More firms can benefit from having their staff take ownership.

Faster pace and better results.

Have you see this applied in your firm?

Selamat Hari Raya Aidilfitri from all of us at Tin Men Capital !

Eid Murabak (in Arabic) marks the end of Ramadan.

A month that encourages reflection, and spiritual growth for our Muslim friends and colleagues.

It’s a time for us to forgive and forget past mistakes. 

It means seeking forgiveness both ways for wrongdoings.

To be appreciative and generous to those in need.

A reset of sorts to be kinder and more thoughtful.

In Singapore, we’re very blessed to be exposed to a melting pot of beautiful cultures.

We get to share in this meaningful tradition to cherish the bonds of family and community.

The spirit of the season lighting up homes and hearts.

Selamat Hari Raya to everyone who celebrates this festival.

And a restful day of appreciation for those that don’t.

Taplio

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