{"id":276209,"date":"2025-12-30T11:12:25","date_gmt":"2025-12-30T11:12:25","guid":{"rendered":"https:\/\/www.strategytools.io\/?p=276209"},"modified":"2025-12-30T12:57:14","modified_gmt":"2025-12-30T12:57:14","slug":"the-fund-journey-an-emerging-managers-story-from-kuala-lumpur-to-south-east-asia-part-ii-investment-period-and-the-birth-of-fund-ii-years-2-5","status":"publish","type":"post","link":"https:\/\/www.strategytools.io\/blog\/the-fund-journey-an-emerging-managers-story-from-kuala-lumpur-to-south-east-asia-part-ii-investment-period-and-the-birth-of-fund-ii-years-2-5\/","title":{"rendered":"The Fund Journey: An Emerging Manager\u2019s Story from Kuala Lumpur to South-East Asia. Part II: Investment Period and the Birth of Fund II (Years 2-5)"},"content":{"rendered":"\n

Continued from Part I (years T-2 -1). Read part I <\/em>here<\/em><\/a>, and Part III <\/em>here<\/em><\/a>.<\/em><\/p>\n\n\n\n

Through the lens of Aisha Rahman, Founding Partner, Meridian Ventures<\/em> With insights from: Rizal Tan, Co-Founder & General Partner<\/em> And: Priya Nair, CEO, DataSync (Portfolio Company)<\/em><\/p>\n\n\n\n

The investment period is where fund strategy meets market reality. For Meridian Ventures, Years 2-5 would test every assumption in our thesis\u2014and force us to make decisions that would determine whether Fund I would succeed or fail. More importantly, it would teach us that building a world-class fundraising team was the key to our survival.<\/strong><\/p>\n\n\n\n

Year 2: Building the Portfolio<\/h3>\n\n\n\n

January-March: Deployment Accelerates<\/strong><\/p>\n\n\n\n

Year 2 began with unfinished business\u2014we were still seeking to fill out our Fund I portfolio while simultaneously supporting our initial five investments.<\/p>\n\n\n\n

The portfolio construction challenge:<\/strong><\/p>\n\n\n\n

Fund I targeted 12-15 investments. With $10M and roughly 30% reserved for follow-ons ($3M), we had $7M for initial investments. Average initial check: $450K-$600K.<\/p>\n\n\n\n

Our investment period was 3-4 years, but best practice suggested deploying most capital in years 1-2 to allow adequate time for value creation before exits.<\/p>\n\n\n\n

Target deployment pace:<\/strong> 4-5 investments per year in Years 1-2, slowing in Years 3-4.<\/p>\n\n\n\n

Q1 investments:<\/strong><\/p>\n\n\n\n

Investment #6: HealthTech MY (February, Year 2)<\/strong> \u2014 Digital health platform connecting patients with specialists. Strong team from the Malaysian healthcare system. Complex regulatory environment, but a genuine market need. $450K investment.<\/p>\n\n\n\n

Investment #7: <\/strong>PropTech.asia<\/strong><\/a> (March, Year 2)<\/strong> \u2014 Commercial real estate analytics. Data-driven approach to property valuation across South-East Asian markets. Two experienced founders from the real estate industry. $400K investment.<\/p>\n\n\n\n

April-June: First Portfolio Challenges Emerge<\/strong><\/p>\n\n\n\n

By summer, reality started diverging from our investment memos.<\/p>\n\n\n\n

DataSync: The early warning signs<\/strong><\/p>\n\n\n\n

Our first investment wasn\u2019t developing as expected. The founding team\u2014brilliant data scientists from Grab\u2014struggled with go-to-market execution. Six months post-investment, they had built an impressive product with almost no customers.<\/p>\n\n\n\n

Our board seat gave us visibility, but limited control. We pushed for them to hire a commercial co-founder. They resisted, believing the product would sell itself.<\/p>\n\n\n\n

The VC\u2019s dilemma:<\/strong><\/p>\n\n\n\n

This is where active ownership gets complicated. We had conviction in the market and product, but growing concerns about execution. Do we push harder and risk damaging the GP-founder relationship? Do we stay hands-off and hope they figure it out? Do we write more about our concerns in LP reports, potentially signaling problems prematurely?<\/p>\n\n\n\n

We chose a middle path: supportive but direct feedback in board meetings, connected them with commercial advisors from our network, and documented our concerns internally while maintaining constructive external positioning.<\/p>\n\n\n\n

Rizal\u2019s perspective:<\/strong><\/p>\n\n\n\n

\u201cDataSync taught us something important in Year 1: the gap between investment memo and portfolio reality. On paper, they were perfect\u2014ex-Grab team, clear market need, technical excellence. In practice, they had a fundamental gap in commercial DNA. As investors, we could coach around the edges, but we couldn\u2019t fix the team composition problem without their buy-in. That\u2019s the limit of VC influence at the seed stage.\u201d<\/em><\/p>\n\n\n\n

\"\"
Hunting great deals, but not every deal is going to end well.<\/figcaption><\/figure>\n\n\n\n

July-December: Closing Out Year 2<\/strong><\/p>\n\n\n\n

More investments:<\/strong><\/p>\n\n\n\n

Investment #8: AgriTech ASEAN (August, Year 2)<\/strong> \u2014 Precision agriculture software for South-East Asian farms. Strong domain expertise from agricultural extension backgrounds. $350K investment.<\/p>\n\n\n\n

Investment #9: EduScale ID (October, Year 2)<\/strong> \u2014 EdTech platform for corporate training, Indonesia-focused. First-time founder, but she\u2019d been a customer of this category for years and understood the pain points intimately. $400K investment.<\/p>\n\n\n\n

Investment #10: FinFlow (November, Year 2)<\/strong> \u2014 Subscription billing platform for regional SaaS companies. Two-time founder (previous exit to a strategic acquirer). More expensive than our typical deals\u2014we paid a premium for founder pedigree. $550K investment.<\/p>\n\n\n\n

Year 2 Summary:<\/h3>\n\n\n\n

Metric Value<\/p>\n\n\n\n

Investments made 10 total (5 in Year 0, 5 in Year 1)<\/p>\n\n\n\n

Capital deployed $4.1M (59% of initial allocation)<\/p>\n\n\n\n

Portfolio value (estimated) $4.5M (modest markups)<\/p>\n\n\n\n

Net IRR ~10%<\/p>\n\n\n\n

TVPI 1.10x<\/p>\n\n\n\n

DPI 0.0x (no distributions)<\/p>\n\n\n\n

LP feedback (first annual meeting):<\/strong><\/p>\n\n\n\n

Our first annual LP meeting happened in November, Year 2. The feedback was mixed.<\/p>\n\n\n\n

Positives:<\/strong> LPs liked our pace of deployment, the quality of our deal sourcing, and our transparent reporting.<\/p>\n\n\n\n

Concerns:<\/strong> Multiple LPs questioned why we\u2019d invested in 10 companies before having meaningful traction data from our earliest investments. Were we deploying too fast? Should we have waited to see DataSync progress before committing more capital? This was fair criticism. We defended our approach\u2014the market window for seed deals doesn\u2019t wait, and batch deployment is normal\u2014but we heard the underlying anxiety.<\/p>\n\n\n\n

Year 3: The J-Curve Bites Hard<\/h3>\n\n\n\n

January-March: Portfolio Divergence Accelerates<\/strong><\/p>\n\n\n\n

Year 3 revealed the brutal reality of seed-stage investing: outcomes diverge fast.<\/p>\n\n\n\n

The winners emerging:<\/strong><\/p>\n\n\n\n

PayMalaysia<\/strong> signed a partnership with a major Malaysian bank, gaining access to 25,000 SME customers. Their MRR jumped from $15K to $45K in a single quarter.<\/p>\n\n\n\n

CloudSEA<\/strong> landed their first enterprise customer and began generating real revenue. The founding team proved they could sell, not just build.<\/p>\n\n\n\n

FinFlow<\/strong>\u2014our expensive bet on the serial founder\u2014launched and acquired 80 paying customers within three months. Unit economics looked strong.<\/p>\n\n\n\n

The troubled middle:<\/strong><\/p>\n\n\n\n

LogiTech Asia<\/strong> was progressing but slowly. Their pilot customers liked the product but were reluctant to commit to scaled rollouts. The solo founder was burning out, handling everything herself.<\/p>\n\n\n\n

SecureKL<\/strong> hit regulatory complexity we\u2019d underestimated. Malaysian cybersecurity compliance required certifications that would take 12-18 months to obtain.<\/p>\n\n\n\n

AgriTech ASEAN<\/strong> was pre-revenue and burning cash on R&D. The founders were making technical progress but had no commercial traction whatsoever.<\/p>\n\n\n\n

The failures materializing:<\/strong><\/p>\n\n\n\n

DataSync<\/strong> continued its slow death march. By March, Year 3, they had signed only two customers\u2014both small, low-ACV deals that didn\u2019t validate the business model. Cash was running low.<\/p>\n\n\n\n

The write-down conversation:<\/strong><\/p>\n\n\n\n

For the first time, we had to discuss portfolio write-downs with our LPs.<\/p>\n\n\n\n

Our policy was to mark investments at fair value quarterly, based on either subsequent financing rounds or internal assessment. DataSync hadn\u2019t raised follow-on capital, and our internal assessment suggested the company was worth significantly less than we\u2019d paid.<\/p>\n\n\n\n

The decision:<\/strong> Mark DataSync down by 50%. Our $400K investment was now carried at $200K.<\/p>\n\n\n\n

This single write-down dropped our fund TVPI from 1.12x to 1.05x.<\/p>\n\n\n\n

Grace Choo\u2019s perspective (LP advisor, though not yet an investor):<\/strong><\/p>\n\n\n\n

\u201cI remember Aisha calling to tell me about the DataSync write-down. She was clearly uncomfortable\u2014admitting their first investment was struggling felt like a personal failure. But I actually gained confidence from that call. They weren\u2019t hiding problems. They weren\u2019t massaging valuations to look better. They were being straight about challenges. That\u2019s exactly what I want to see from GPs.\u201d<\/em><\/p>\n\n\n\n

April-September: The Capital Crisis and Critical Decision<\/strong><\/p>\n\n\n\n

DataSync reaches the breaking point:<\/strong><\/p>\n\n\n\n

By July, DataSync had 4 months of runway remaining. The founding team came to us with two options:<\/p>\n\n\n\n

Option A:<\/strong> Bridge financing to buy time for one more pivot attempt. They wanted $150K from existing investors to extend runway by 8-10 months.<\/p>\n\n\n\n

Option B:<\/strong> Shut down the company, preserve remaining capital for investor return, accept failure.<\/p>\n\n\n\n

This was our first major follow-on decision. The Fund Journey Map shows this moment clearly\u2014the choice between doubling down and writing off.<\/p>\n\n\n\n

The analysis:<\/strong><\/p>\n\n\n\n

We ran the numbers cold. DataSync had burned $500K (our $400K plus other investor capital) with almost nothing to show for it. The founding team had proven they couldn\u2019t find early product-market fit despite multiple pivots. The market for SMB analytics was getting more competitive, not less.<\/p>\n\n\n\n

A $150K bridge would increase our exposure to $550K in a company we\u2019d already written down 50%.<\/p>\n\n\n\n

Our decision:<\/strong> Don\u2019t participate in the bridge. Let the company find other sources of capital or shut down.<\/p>\n\n\n\n

This was painful. We liked the founders personally. We\u2019d championed them to our LPs. Walking away felt like failure.<\/p>\n\n\n\n

But the alternative was worse: good money after bad into a company that had demonstrated it couldn\u2019t execute.<\/p>\n\n\n\n

The aftermath:<\/strong><\/p>\n\n\n\n

DataSync couldn\u2019t raise the bridge from other sources. In September, Year 3, they shut down and returned approximately $40K to investors. Our $400K investment became a $32K return\u2014a 92% loss.<\/p>\n\n\n\n

Priya Nair (CEO, DataSync) perspective:<\/strong><\/p>\n\n\n\n

\u201cLooking back, Meridian made the right call. At the time, I was furious\u2014I thought they were abandoning us. But we\u2019d had 18 months to prove the model and hadn\u2019t done it. Throwing more money at the problem wouldn\u2019t have changed the fundamental issue: we were great at building product and terrible at selling it. I learned more from that failure than from anything else in my career. Two years later, I started a new company with a commercial co-founder from day one. That company is now doing $2M ARR. DataSync\u2019s failure was my most important education.\u201d<\/em><\/p>\n\n\n\n

The Hard Lesson: We Need to Get Better at Fundraising<\/strong><\/p>\n\n\n\n

By late Year 3, with DataSync written off and the J-curve biting hard, we had a sobering realization.<\/p>\n\n\n\n

\u201cIf we\u2019re going to survive as a firm,\u201d<\/em> Rizal said one evening in our Bangsar office, \u201cwe need to raise Fund II. And we can\u2019t go through the same scramble we did for Fund I. That nearly broke us.\u201d<\/em><\/p>\n\n\n\n

He was right. Fund I fundraising had been 18 months of desperation, cold outreach, and near-misses. We\u2019d raised $10M through sheer determination, but we\u2019d burned out in the process. And $10M wasn\u2019t enough to build a sustainable management company.<\/p>\n\n\n\n

We needed a systematic approach to fundraising. We needed a real fundraising team.<\/strong><\/p>\n\n\n\n

Building a World-Class Fundraising Team: The Game Changer<\/h3>\n\n\n\n
\"\"
Who’s on your capital formation team?<\/figcaption><\/figure>\n\n\n\n

The canvas identifies eight distinct roles that drive successful LP fundraising. We didn\u2019t have eight people\u2014we never would for Fund II\u2014but we deliberately covered each function:<\/strong><\/p>\n\n\n\n

Role Function Our Solution<\/p>\n\n\n\n

LP Researcher<\/strong><\/p>\n\n\n\n

Leads all research on prospective LPs, fills top of funnel<\/p>\n\n\n\n

Part-time analyst using ADB\u2019s LP database and conference materials<\/p>\n\n\n\n

LP Networks & Engagement<\/strong><\/p>\n\n\n\n

Builds deep relationships through events, conferences<\/p>\n\n\n\n

Aisha – primary relationship builder through AVCJ, SuperReturn Asia<\/p>\n\n\n\n

Deck, Model & Dataroom Builder<\/strong><\/p>\n\n\n\n

Builds and maintains all fundraising materials<\/p>\n\n\n\n

Outsourced structure using Strategy Tools templates; Rizal maintained<\/p>\n\n\n\n

AI & Automation<\/strong><\/p>\n\n\n\n

Builds automation engine to make LP process 10x faster<\/p>\n\n\n\n

LP AI platform for persona practice + custom CRM workflows<\/p>\n\n\n\n

GP Leadership<\/strong><\/p>\n\n\n\n

Overall leadership, joins and leads most LP meetings<\/p>\n\n\n\n

Rizal – led all key meetings, responsible for overall LP performance<\/p>\n\n\n\n

LP Closer<\/strong><\/p>\n\n\n\n

Takes LPs from hello to signature, strong sales focus<\/p>\n\n\n\n

Split between Rizal and Aisha based on relationship warmth<\/p>\n\n\n\n

LP Whisperer<\/strong><\/p>\n\n\n\n

Elder statesman with networks to top prospective LPs<\/p>\n\n\n\n

Advisory board member from major family office + Jim, ex-ADB<\/p>\n\n\n\n

LP Process & DD Guide<\/strong><\/p>\n\n\n\n

Guides LPs through entire process from data room to IC<\/p>\n\n\n\n

Dedicated support from legal counsel + streamlined process docs<\/p>\n\n\n\n

This systematic approach transformed our fundraising capability. Where Fund I had been desperate scrambling, Fund II would be organized execution.<\/em><\/p>\n\n\n\n

\"\"
From two GPs to a strong capital formation team and network<\/figcaption><\/figure>\n\n\n\n

Key changes we implemented:<\/strong><\/p>\n\n\n\n

1. Continuous LP engagement:<\/strong> We didn\u2019t wait until we \u201cstarted fundraising.\u201d We maintained quarterly touchpoints with all Fund I LPs and prospective Fund II LPs from Year 3 onward.<\/p>\n\n\n\n

2. Data room always ready:<\/strong> Instead of scrambling to build materials when an LP showed interest, we kept a perpetually updated data room.<\/p>\n\n\n\n

3. LP persona customization:<\/strong> Different pitch materials for different LP types, practiced extensively using the Strategy Tools LP AI platform.<\/p>\n\n\n\n

4. CRM discipline:<\/strong> Every LP interaction logged, follow-ups scheduled, relationship health tracked.<\/p>\n\n\n\n

5. Advisory leverage:<\/strong> Our advisory board member opened doors we could never have opened ourselves.<\/p>\n\n\n\n

The IFC Partnership: Becoming Institutional-Ready<\/h3>\n\n\n\n

One relationship proved transformative during our Fund II preparation: our connection to Grace Choo , Regional Lead at IFC (International Finance Corporation).<\/p>\n\n\n\n

Grace had seen hundreds of emerging managers across Asia. She\u2019d watched funds succeed and fail, scale and collapse. When we approached her in Year 3, we weren\u2019t asking for investment (we knew our fund was too small for IFC at that stage). We were asking for guidance.<\/p>\n\n\n\n

\u201cWe got immense support from Grace to understand how to evolve from Fund I to Fund II, and becoming institutional-scale ready,\u201d<\/em> I later told other emerging managers at an AVCJ panel.<\/p>\n\n\n\n

Her guidance covered several critical areas:<\/strong><\/p>\n\n\n\n

On portfolio reporting:<\/strong> Institutional LPs expected quarterly reports with specific metrics. IFC had templates we could adapt.<\/p>\n\n\n\n

On ESG integration:<\/strong> DFIs increasingly required ESG frameworks. Build these now rather than retrofit later.<\/p>\n\n\n\n

On governance:<\/strong> Have an Advisory Committee and LP reporting structure that would scale.<\/p>\n\n\n\n

On fund size:<\/strong> IFC typically couldn\u2019t invest in funds under $50M, but if we performed well in Fund II, Fund III might qualify.<\/p>\n\n\n\n

\u201cThink of Fund II as your audition tape for institutional capital,\u201d<\/em> Grace advised. \u201cEvery decision you make, every report you write, every portfolio company you support\u2014assume that institutional LPs will scrutinize all of it when you come back for Fund III.\u201d<\/em><\/p>\n\n\n\n

Andrew Senduk: Venture Partner for GTM Excellence<\/h3>\n\n\n\n

As our portfolio grew, we recognized a gap in our capabilities: go-to-market (GTM) execution. Many of our founders were technical experts who struggled with sales, marketing, and commercial scaling.<\/p>\n\n\n\n

In Year 3, we brought on Andrew Senduk as a Venture Partner specifically to address this gap.<\/p>\n\n\n\n

Andrew had spent 15 years building and scaling businesses across Indonesia, Malaysia, and Singapore. He\u2019d led GTM for two successful startups (one acquired, one IPO\u2019d) and understood the unique challenges of selling across South-East Asia\u2019s fragmented markets.<\/p>\n\n\n\n

Andrew\u2019s perspective on joining Meridian:<\/strong><\/p>\n\n\n\n

\u201cWhat attracted me to Meridian was their recognition that early-stage investing isn\u2019t just about picking winners\u2014it\u2019s about helping those winners actually win. Most seed-stage founders in South-East Asia are technical builders who\u2019ve never sold enterprise software or scaled a consumer product across multiple countries. That\u2019s where I could add genuine value.\u201d<\/em><\/p>\n\n\n\n

Andrew worked with six of our Fund I portfolio companies on their GTM strategies:<\/strong><\/p>\n\n\n\n

\u2022            Sales process design for enterprise SaaS companies<\/p>\n\n\n\n

\u2022            Market entry strategies for regional expansion<\/p>\n\n\n\n

\u2022            Pricing and packaging optimization<\/p>\n\n\n\n

\u2022            Customer success frameworks<\/p>\n\n\n\n

His involvement became a key part of our LP pitch for Fund II: we weren\u2019t just providing capital, we were providing hands-on GTM expertise that could meaningfully accelerate our portfolio companies\u2019 growth.<\/p>\n\n\n\n

Year 4: Portfolio Maturation and Fund II Launch<\/h3>\n\n\n\n

Portfolio Performance at Year 4:<\/strong><\/p>\n\n\n\n

Company Total Investment Status Current Value Multiple<\/p>\n\n\n\n

DataSync $400K Shut down $32K 0.08x<\/p>\n\n\n\n

PayMalaysia $450K Series A prep $2.2M 4.9x<\/p>\n\n\n\n

CloudSEA $600K Growing $1.5M 2.5x<\/p>\n\n\n\n

SecureKL $400K Bridge raised $350K 0.87x<\/p>\n\n\n\n

LogiTech Asia $500K Turnaround $550K 1.1x<\/p>\n\n\n\n

HealthTech MY $450K Growing $650K 1.4x<\/p>\n\n\n\n

PropTech.asia<\/a> $400K Growing $500K 1.25x<\/p>\n\n\n\n

AgriTech ASEAN $350K Struggling $200K 0.57x<\/p>\n\n\n\n

EduScale ID $400K Growing $600K 1.5x<\/p>\n\n\n\n

FinFlow $550K Pre-Series A $1.8M 3.3x<\/p>\n\n\n\n

Year 4 Fund I Metrics:<\/strong><\/p>\n\n\n\n

\u2022 Total invested:<\/strong> $4.5M (65% of initial allocation)<\/p>\n\n\n\n

\u2022 Current portfolio value:<\/strong> $8.4M<\/p>\n\n\n\n

\u2022 TVPI:<\/strong> 1.55x<\/p>\n\n\n\n

\u2022 DPI:<\/strong> 0.01x<\/p>\n\n\n\n

\u2022 Net IRR:<\/strong> ~18%<\/p>\n\n\n\n

Fund II Strategy evolution<\/h3>\n\n\n\n

It was a webinar in March that led to team to step back and reflect. \u201cOur fund II is not just a replica of fund I. We need to think far more strategically\u201d. On the webinar, the team was introduced to the Fund Strategy Canvas, developed by Strategy Tools. Carving out a full-day offsite, the team sat down to complete the Fund Strategy Canvas together.<\/p>\n\n\n\n

Fund Strategy Canvas:<\/strong> Meridian Ventures Fund II ($25M)<\/p>\n\n\n\n

Fund Name: <\/strong>Meridian Ventures Fund II<\/p>\n\n\n\n

General Partners:<\/strong> Aisha Rahman & Rizal Tan<\/p>\n\n\n\n

\"\"
Use the Fund Strategy Canvas for your one-page, visual strategy<\/figcaption><\/figure>\n\n\n\n

THESIS, STRATEGY<\/strong><\/p>\n\n\n\n

Thesis & Size<\/strong><\/p>\n\n\n\n

Meridian Ventures Fund II is a $25M early-stage venture capital fund investing in B2B software and fintech companies across South-East Asia, with primary focus on Malaysia, Indonesia, Vietnam, and the Philippines.<\/p>\n\n\n\n

Our thesis is built on three convictions:<\/p>\n\n\n\n

First, South-East Asia’s digital economy is entering its enterprise phase. After a decade of consumer internet growth, the next wave of value creation will come from B2B infrastructure\u2014payments, logistics software, enterprise SaaS, and vertical solutions that enable the region’s 70 million SMEs to digitize operations.<\/p>\n\n\n\n

Second, the best founders in ASEAN are increasingly emerging from non-traditional backgrounds and geographies outside Singapore. Malaysia, Indonesia, and Vietnam are producing world-class technical talent with deep local market understanding. These founders are systematically overlooked by Singapore-centric VCs who rarely travel beyond Changi Airport.<\/p>\n\n\n\n

Third, early-stage companies in emerging South-East Asian markets need more than capital. They need operational support\u2014particularly in go-to-market execution, regional expansion strategy, and preparation for institutional follow-on rounds. GPs who combine capital with hands-on GTM expertise will generate superior returns.<\/p>\n\n\n\n

Fund II targets $25M, representing a 2.5x step-up from our $10M Fund I. This size allows us to lead seed rounds of $500K-$1.5M while maintaining meaningful follow-on reserves for winners.<\/p>\n\n\n\n

Strategy<\/strong><\/p>\n\n\n\n

Stage: Pre-seed to Seed, with selective Seed+ participation<\/p>\n\n\n\n

Check size: $500K-$1.5M initial; up to $2M follow-on in winners<\/p>\n\n\n\n

Geography: Malaysia (40%), Indonesia (35%), Vietnam\/Philippines (25%)<\/p>\n\n\n\n

Sectors: B2B software, fintech infrastructure, vertical SaaS, logistics tech<\/p>\n\n\n\n

Target portfolio: 18-22 companies over 3-year deployment period<\/p>\n\n\n\n

We invest at the earliest institutional stage\u2014typically first or second money in after angels. Our sweet spot is technical founding teams with clear product vision but limited go-to-market experience. We help them build the commercial muscle to reach Series A.<\/p>\n\n\n\n

Unfair Advantage<\/strong><\/p>\n\n\n\n

Our unfair advantage is the combination of three elements no other regional fund possesses:<\/p>\n\n\n\n

Operator-investor team: Rizal spent 8 years building and scaling startups across Malaysia and Indonesia before becoming an investor. He’s lived the founder journey and speaks the language of operators, not just financiers.<\/p>\n\n\n\n

Ground-level presence: We’re based in Kuala Lumpur, not Singapore. We travel to Jakarta, Ho Chi Minh City, and Manila monthly. We see deals 6-12 months before Singapore-based funds because we’re embedded in local founder communities.<\/p>\n\n\n\n

GTM value-add through Andrew Senduk: Our Venture Partner has 15 years of enterprise sales and regional expansion experience. He works directly with portfolio companies on sales process, pricing strategy, and market entry\u2014capabilities that differentiate us from capital-only investors.<\/p>\n\n\n\n

TEAM & TRACK RECORD<\/strong><\/p>\n\n\n\n

General Partners<\/strong><\/p>\n\n\n\n

Aisha Rahman, Founding Partner<\/p>\n\n\n\n

12 years in venture capital and corporate development. Former Principal at a mid-sized regional VC where she led 15+ investments across ASEAN. Board experience across fintech, SaaS, and logistics companies. MBA from INSEAD. Leads fund strategy, LP relations, and serves on 6 portfolio company boards.<\/p>\n\n\n\n

Rizal Tan, Co-Founder & General Partner<\/p>\n\n\n\n

8 years as operator, 4 years as investor. Former VP Business Development at a Series B payments company (acquired). Founded and sold a B2B marketplace in Malaysia. Leads deal sourcing, investment decisions, and portfolio company operational support. Deep networks across Malaysian and Indonesian founder communities.<\/p>\n\n\n\n

Extended Team<\/strong><\/p>\n\n\n\n

Andrew Senduk, Venture Partner<\/p>\n\n\n\n

15 years building and scaling businesses across Indonesia, Malaysia, and Singapore. Led GTM for two successful startups (one acquired, one IPO’d). Works with portfolio companies on sales process design, regional expansion, and commercial scaling. Not full-time but engaged across 6+ portfolio companies per fund.<\/p>\n\n\n\n

Two Associates: Handle deal sourcing, due diligence support, and portfolio monitoring. One based in KL, one in Jakarta.<\/p>\n\n\n\n

One Operations Manager: Fund administration, LP reporting, and back-office operations.<\/p>\n\n\n\n

Track Record<\/strong><\/p>\n\n\n\n

Fund I Performance (as of Fund II launch):<\/p>\n\n\n\n

Vintage: 2023<\/p>\n\n\n\n

Size: $10M<\/p>\n\n\n\n

Investments: 12 companies<\/p>\n\n\n\n

TVPI: 1.55x<\/p>\n\n\n\n

DPI: 0.02x (one small exit)<\/p>\n\n\n\n

IRR: ~18%<\/p>\n\n\n\n

Notable Fund I positions: PayMalaysia (4.9x paper, Series A prep), FinFlow (3.3x paper, growing rapidly), CloudSEA (2.5x paper, acquisition discussions). One complete write-off (DataSync), demonstrating follow-on discipline.<\/p>\n\n\n\n

Prior Track Record (attributable deals from previous roles):<\/p>\n\n\n\n

Aisha: 4 exits from prior fund, including 2 at 3x+ returns<\/p>\n\n\n\n

Rizal: Personal angel portfolio of 8 investments, 2 exits at 5x+<\/p>\n\n\n\n

LP MIX<\/strong><\/p>\n\n\n\n

Anchor LPs<\/strong><\/p>\n\n\n\n

Jelawang Capital ($4M commitment)<\/p>\n\n\n\n

Regional thought leader in South-East Asian venture. Their rigorous due diligence and public commitment provides institutional validation. Jelawang serves on our Advisory Committee and actively supports our LP fundraising through introductions and co-hosted events.<\/p>\n\n\n\n

Sarona Asset Management ($3M commitment)<\/p>\n\n\n\n

Impact-focused fund-of-funds with emerging markets mandate. Their commitment signals ESG credibility and opens doors to other impact-oriented institutional LPs.<\/p>\n\n\n\n

LP Mix Structure<\/strong><\/p>\n\n\n\n

LP Category    Target Allocation         Rationale<\/p>\n\n\n\n

Fund-of-Funds (emerging manager programs) $7M (28%) Jelawang Capital, Sarona, Speedinvest, regional FoFs with SEA mandates<\/p>\n\n\n\n

Regional Family Offices $6M (24%) Re-ups from Fund I plus new Singapore\/Malaysian families<\/p>\n\n\n\n

Fund I Re-ups (HNWIs, angels) $5M (20%) Strong re-up rate demonstrates LP satisfaction<\/p>\n\n\n\n

Fund-of-fund $4M (16%) Dubai Future District Fund, SEA-MENA-oriented allocators<\/p>\n\n\n\n

Strategic \/ Corporate $2M (8%) Corporate VCs seeking regional deal flow<\/p>\n\n\n\n

GP Commitment$1M (4%), Increased from Fund I to demonstrate alignment<\/p>\n\n\n\n

Target LP count: 18-22 LPs<\/p>\n\n\n\n

Average commitment: $1.1-1.4M<\/p>\n\n\n\n

Minimum commitment: $250K (to maintain fund I relationships)<\/p>\n\n\n\n

LP Value Add<\/strong><\/p>\n\n\n\n

Our LP base isn’t just capital\u2014it’s a strategic network:<\/p>\n\n\n\n

Jelawang Capital: Portfolio company introductions, co-investment on larger rounds, thought leadership association<\/p>\n\n\n\n

Sarona: ESG framework guidance, impact measurement support, introductions to impact-focused follow-on investors<\/p>\n\n\n\n

Fund I HNWIs (exited founders): Direct mentorship to portfolio founders, customer introductions, hiring network access<\/p>\n\n\n\n

Dubai Future District Fund: Middle East expansion pathway for portfolio companies, sovereign wealth fund network<\/p>\n\n\n\n

Corporate LPs: Strategic partnership and M&A optionality for portfolio companies<\/p>\n\n\n\n

LP ECONOMICS<\/strong><\/p>\n\n\n\n

Financial Terms<\/strong><\/p>\n\n\n\n

Term     Fund II                Structure<\/p>\n\n\n\n

Management Fee<\/p>\n\n\n\n

2.0% on committed capital during investment period<\/p>\n\n\n\n

2.0% on invested capital thereafter<\/p>\n\n\n\n

Carried Interest 20%<\/p>\n\n\n\n

Preferred Return (Hurdle) 8%<\/p>\n\n\n\n

GP Commitment 4% ($1M)<\/p>\n\n\n\n

Waterfall <\/strong>European (whole-fund)<\/p>\n\n\n\n

Fund Life10 years + two 1-year extensions<\/p>\n\n\n\n

Investment Period 4 years<\/p>\n\n\n\n

Distribution Policy<\/strong><\/p>\n\n\n\n

Distributions made as exits occur, subject to:<\/p>\n\n\n\n

Return of LP capital contributions first<\/p>\n\n\n\n

8% preferred return to LPs<\/p>\n\n\n\n

80\/20 split thereafter (LP\/GP)<\/p>\n\n\n\n

GP catch-up provision after hurdle achieved<\/p>\n\n\n\n

Fee Offsets<\/strong><\/p>\n\n\n\n

100% of transaction fees, monitoring fees, and director fees received by GPs from portfolio companies are offset against management fees.<\/p>\n\n\n\n

LEGAL SETUP<\/strong><\/p>\n\n\n\n

Fund Domicile: Labuan International Business and Financial Centre (IBFC), Malaysia<\/p>\n\n\n\n

Fund Structure: Labuan Limited Partnership<\/p>\n\n\n\n

Rationale for Labuan:<\/p>\n\n\n\n

Tax-efficient structure for regional investments<\/p>\n\n\n\n

Regulatory framework designed for investment funds<\/p>\n\n\n\n

Lower setup and administration costs than Singapore VCC or Cayman<\/p>\n\n\n\n

Acceptable to institutional LPs including DFIs<\/p>\n\n\n\n

Geographic alignment with our KL base<\/p>\n\n\n\n

Fund Administrator: Apex Fund Services (Singapore)<\/p>\n\n\n\n

Legal Counsel:<\/p>\n\n\n\n

Fund formation: Rajah & Tann (Singapore\/Malaysia)<\/p>\n\n\n\n

Portfolio investments: Local counsel in each jurisdiction<\/p>\n\n\n\n

Auditor: Ernst & Young (Malaysia)<\/p>\n\n\n\n

Tax Considerations:<\/p>\n\n\n\n

Labuan entities benefit from 3% tax on net profits or flat RM20,000<\/p>\n\n\n\n

No withholding tax on distributions to non-Malaysian LPs<\/p>\n\n\n\n

Tax treaties in place with most LP jurisdictions<\/p>\n\n\n\n

DEALFLOW<\/strong><\/p>\n\n\n\n

Primary Dealflow Channels<\/strong><\/p>\n\n\n\n

1. Founder Networks (40% of pipeline)<\/p>\n\n\n\n

Rizal’s operator background generates direct founder referrals. Portfolio company founders introduce their peers. Our reputation for being “founder-friendly” creates inbound interest from founders who’ve heard about us through the ecosystem.<\/p>\n\n\n\n

2. Ecosystem Partners (30% of pipeline)<\/p>\n\n\n\n

Deep relationships with Cradle Fund (Malaysia), MDEC, 500 Startups (SEA), Antler, and regional accelerators. We’re the preferred follow-on investor for several accelerator programs because we move quickly and add operational value.<\/p>\n\n\n\n

3. Angel\/Syndicate Networks (20% of pipeline)<\/p>\n\n\n\n

Co-invest relationships with AngelCentral Malaysia, Angel Investment Network Indonesia, and individual super-angels across the region. Angels bring us deals early; we bring them access to institutional rounds.<\/p>\n\n\n\n

4. Proactive Sourcing (10% of pipeline)<\/p>\n\n\n\n

Associates systematically track companies emerging from regional tech hubs, monitor funding announcements, and conduct outbound outreach to promising founders.<\/p>\n\n\n\n

Dealflow Expansion Strategy<\/strong><\/p>\n\n\n\n

For Fund II, we’re expanding dealflow through:<\/p>\n\n\n\n

Quarterly “Office Hours” in Jakarta, Ho Chi Minh City, and Manila<\/p>\n\n\n\n

Content marketing (Aisha’s LinkedIn presence reaches 15,000+ regional followers)<\/p>\n\n\n\n

Deeper accelerator relationships in Vietnam and Philippines (underserved in Fund I)<\/p>\n\n\n\n

Investment Process<\/strong><\/p>\n\n\n\n

Stage                   Timeline                         Activities<\/p>\n\n\n\n

Initial Screen                                                                                                         1 week<\/p>\n\n\n\n

Partner review of deck\/intro, quick pass\/proceed decision First Meeting           1-2 weeks<\/p>\n\n\n\n

60-minute founder meeting, both GPs attend, Deep Dive, Term sheet 1            1-3 weeks<\/p>\n\n\n\n

Market analysis, reference calls, product review, Investment Committee           1 week<\/p>\n\n\n\n

IC memo, partner discussion, decision, Term Sheet 2 & Close                        1-4 weeks<\/p>\n\n\n\n

Final terms negotiation, legal documentation, funding                                       1-4 weeks<\/p>\n\n\n\n

Total process: 2-14 weeks from first meeting to close<\/p>\n\n\n\n

Decision authority: Both GPs must approve; no solo deals<\/p>\n\n\n\n

PORTFOLIO & VALUE ADD<\/strong><\/p>\n\n\n\n

Portfolio Construction Parameter<\/p>\n\n\n\n

Target Number of investments 18-22 companies<\/p>\n\n\n\n

Initial check size $500K-$1.5M<\/p>\n\n\n\n

Follow-on reserves 35% of fund ($8.75M)<\/p>\n\n\n\n

Target ownership 8-15% at entry<\/p>\n\n\n\n

Concentration limit<\/p>\n\n\n\n

No single investment >12% of fund<\/p>\n\n\n\n

Follow-on Strategy<\/strong><\/p>\n\n\n\n

We reserve 35% of the fund for follow-on investments in winners. Follow-on decisions are made based on:<\/p>\n\n\n\n

Company performance against milestones<\/p>\n\n\n\n

Ability to maintain meaningful ownership<\/p>\n\n\n\n

Quality of incoming investors<\/p>\n\n\n\n

Risk\/reward at new valuation<\/strong><\/p>\n\n\n\n

We explicitly do NOT do pro-rata follow-ons across the portfolio. Capital is concentrated in top performers. Fund I experience: followed on in 3 of 12 companies; those 3 represent 60% of portfolio value.<\/p>\n\n\n\n

Investment Decision Framework<\/strong><\/p>\n\n\n\n

All investments must meet threshold criteria:<\/p>\n\n\n\n

Team: Technical depth + commercial potential (or willingness to add commercial talent)<\/p>\n\n\n\n

Market: $500M+ addressable market in ASEAN<\/p>\n\n\n\n

Timing: Clear catalyst for why now<\/p>\n\n\n\n

Fit: B2B\/fintech focus aligned with thesis<\/p>\n\n\n\n

Valuation: Entry price supporting 10x+ return potential<\/p>\n\n\n\n

<\/p>\n\n\n\n

Value Add: How We Support Portfolio Companies<\/strong><\/p>\n\n\n\n

Board Engagement<\/strong><\/p>\n\n\n\n

GPs take board seats on all lead investments. Active participation in strategy, hiring, and fundraising decisions. Monthly check-ins with all portfolio CEOs.<\/p>\n\n\n\n

GTM Support (Andrew Senduk)<\/p>\n\n\n\n

Hands-on work with portfolio companies on:<\/p>\n\n\n\n

Sales process design and optimization<\/p>\n\n\n\n

Pricing and packaging strategy<\/p>\n\n\n\n

Enterprise sales playbook development<\/p>\n\n\n\n

Regional expansion planning<\/p>\n\n\n\n

Customer success frameworks<\/p>\n\n\n\n

Andrew engages with 6-8 companies per fund on structured GTM programs.<\/p>\n\n\n\n

Talent Network<\/p>\n\n\n\n

Curated network of 200+ executives and operators across ASEAN. Direct introductions for key hires. Quarterly portfolio talent events connecting companies with candidates.<\/p>\n\n\n\n

Follow-on Fundraising<\/p>\n\n\n\n

Warm introductions to Series A investors (Sequoia SEA, Vertex, East Ventures, Openspace, etc.). Preparation support for institutional fundraising. Data room and pitch coaching.<\/p>\n\n\n\n

Peer Network<\/p>\n\n\n\n

Quarterly portfolio CEO dinners. Slack community for real-time peer support. Annual offsite bringing together all portfolio founders.<\/p>\n\n\n\n

<\/p>\n\n\n\n

EXIT STRATEGY<\/strong><\/p>\n\n\n\n

Value Creation & Exit Strategy<\/strong><\/p>\n\n\n\n

Value Creation Focus Areas:<\/p>\n\n\n\n

During Years 1-3 (building phase):<\/p>\n\n\n\n

Product-market fit validation<\/p>\n\n\n\n

Initial revenue traction ($100K-$500K ARR)<\/p>\n\n\n\n

Team building beyond founders<\/p>\n\n\n\n

Market positioning establishment<\/p>\n\n\n\n

During Years 3-5 (scaling phase):<\/p>\n\n\n\n

Revenue acceleration ($500K-$3M ARR)<\/p>\n\n\n\n

Unit economics optimization<\/p>\n\n\n\n

Geographic expansion within ASEAN<\/p>\n\n\n\n

Series A\/B fundraising<\/p>\n\n\n\n

During Years 5-8 (exit preparation):<\/p>\n\n\n\n

Path to profitability or clear growth trajectory<\/p>\n\n\n\n

Strategic relationship cultivation<\/p>\n\n\n\n

Board composition optimization for exit<\/p>\n\n\n\n

Financial and legal housekeeping<\/p>\n\n\n\n

Exit Pathways:<\/strong><\/p>\n\n\n\n

Exit Type            Expected % of Exits Typical Timeline<\/p>\n\n\n\n

Strategic M&A (regional) 20%              Years 4-7<\/p>\n\n\n\n

Strategic M&A (global)        5%             Years 5-8<\/p>\n\n\n\n

Secondary sale                     10%           Years 4-6<\/p>\n\n\n\n

IPO (rare at our stage)          5%            Years 7-10<\/p>\n\n\n\n

Write-off                            60%              Years 2-8<\/p>\n\n\n\n

Exit Preparation Process:<\/strong><\/p>\n\n\n\n

Starting Year 2, we work with portfolio companies to:<\/p>\n\n\n\n

Identify potential strategic acquirers<\/p>\n\n\n\n

Build relationships with corporate development teams<\/p>\n\n\n\n

Prepare management for M&A processes<\/p>\n\n\n\n

Clean up cap table and legal structure<\/p>\n\n\n\n

Develop exit-ready financial reporting<\/p>\n\n\n\n

Exit Experience<\/strong><\/p>\n\n\n\n

GP Exit Track Record:<\/p>\n\n\n\n

Aisha Rahman:<\/p>\n\n\n\n

4 exits at prior fund, including 2 M&A transactions she led<\/p>\n\n\n\n

Managed LP distributions and exit accounting<\/p>\n\n\n\n

Board member through 3 acquisition processes<\/p>\n\n\n\n

Rizal Tan:<\/p>\n\n\n\n

Founded and sold B2B marketplace to strategic acquirer<\/p>\n\n\n\n

Personal angel portfolio: 2 exits (1 acquisition, 1 secondary)<\/p>\n\n\n\n

Operator perspective on founder exit psychology<\/p>\n\n\n\n

Fund I Exits (to date):<\/strong><\/p>\n\n\n\n

SecureKL: Acquired for $2M (1.38x return)\u2014managed full M&A process<\/p>\n\n\n\n

DataSync: Orderly wind-down with capital return\u2014demonstrated discipline<\/p>\n\n\n\n

AgriTech ASEAN: Wind-down in progress<\/p>\n\n\n\n

FUND ECONOMICS<\/strong><\/p>\n\n\n\n

Fund Model Summary<\/p>\n\n\n\n

Item     Amount<\/p>\n\n\n\n

Fund Size $25,000,000<\/p>\n\n\n\n

Management Fee (annual, investment period) $500,000<\/p>\n\n\n\n

Management Fee (annual, post-investment period) $400,000 (on invested capital)<\/p>\n\n\n\n

Total Management Fees (10-year life) $4,400,000<\/p>\n\n\n\n

Available for Investment $20,600,000<\/p>\n\n\n\n

Target Gross Multiple 3.0x<\/p>\n\n\n\n

Target Net Multiple2.5x<\/p>\n\n\n\n

Target Net IRR20%+<\/p>\n\n\n\n

Management Company Economics<\/strong><\/p>\n\n\n\n

Annual management fee of $500K supports:<\/p>\n\n\n\n

2 GP salaries (market-rate for regional VCs)<\/p>\n\n\n\n

2 Associate salaries<\/p>\n\n\n\n

1 Operations Manager salary<\/p>\n\n\n\n

Office (KL headquarters + hot desks in SG, Jakarta)<\/p>\n\n\n\n

Travel (significant\u2014we’re on the ground across 4 countries)<\/p>\n\n\n\n

Fund administration, legal, audit<\/p>\n\n\n\n

LP relations and reporting<\/p>\n\n\n\n

Cash Flow Reality:<\/strong><\/p>\n\n\n\n

Unlike Fund I (where we paid ourselves poverty wages), Fund II economics allow for sustainable GP compensation. This is critical for partnership stability and long-term firm building.<\/p>\n\n\n\n

Carried Interest Distribution<\/strong><\/p>\n\n\n\n

Assuming 3.0x gross return ($75M exit proceeds) on $25M fund:<\/p>\n\n\n\n

Distribution     Amount<\/p>\n\n\n\n

Return of LP Capital  $25,000,000<\/p>\n\n\n\n

8% Preferred Return to LPs $8,000,000<\/p>\n\n\n\n

Remaining Proceeds $42,000,000<\/p>\n\n\n\n

LP Share (80%)$33,600,000<\/p>\n\n\n\n

GP Carried Interest (20%)$8,400,000<\/p>\n\n\n\n

Total LP Returns: $66.6M on $25M invested (2.66x net)<\/p>\n\n\n\n

GP Economics: $8.4M carried interest + ~$4.4M management fees over fund life<\/p>\n\n\n\n

Working Capital<\/strong><\/p>\n\n\n\n

Fund II includes a modest working capital facility to bridge timing gaps between capital calls and expenses. This prevents the personal financial stress that characterized Fund I operations.<\/p>\n\n\n\n

\"\"
Structuring a series A with four co-investors, what are the return profile on this deal?<\/figcaption><\/figure>\n\n\n\n

SUMMARY: WHY FUND II WILL SUCCEED<\/strong><\/p>\n\n\n\n

Meridian Ventures Fund II is positioned to deliver top-quartile returns because:<\/p>\n\n\n\n

Proven Team:<\/strong> GPs with complementary skills, demonstrated partnership stability through Fund I challenges, and relevant operating experience.<\/p>\n\n\n\n

Differentiated Strategy:<\/strong> Ground-level presence in underserved markets, combined with genuine GTM value-add through Andrew Senduk.<\/p>\n\n\n\n

Strong Fund I Foundation<\/strong>: 1.55x TVPI with clear winners emerging, disciplined write-off decisions, and institutional-quality reporting already in place.<\/p>\n\n\n\n

Right-Sized Fund:<\/strong> $25M is large enough to lead meaningful rounds but small enough to generate strong returns from regional exit valuations.<\/p>\n\n\n\n

Institutional LP Base:<\/strong> Anchor commitments from Jelawang and Sarona provide validation and strategic value beyond capital.<\/p>\n\n\n\n

Clear Path to Fund III:<\/strong> Fund II performance sets up institutional fundraise at $50M+, accessing DFI capital and achieving sustainable firm economics.<\/p>\n\n\n\n

\n

Fund II isn’t just an investment vehicle\u2014it’s the foundation for building a permanent institution in South-East Asian venture capital.<\/p>\n<\/blockquote>\n\n\n\n

Fund II Fundraising Begins<\/h3>\n\n\n\n

By mid-Year 3, we formally launched Fund II fundraising with a $25M target\u20142.5x our Fund I size.<\/p>\n\n\n\n

The LP composition evolved significantly from Fund I:<\/strong><\/p>\n\n\n\n

LP Type Commitment<\/p>\n\n\n\n

Jelawang Capital (anchor) <\/strong>$4M<\/p>\n\n\n\n

Sarona Asset Management $3M<\/p>\n\n\n\n

Dubai Future District Fund $2.5M<\/p>\n\n\n\n

Speedinvest Emerging Manager Program $2M<\/p>\n\n\n\n

Regional Fund-of-Funds (2) $5M<\/p>\n\n\n\n

Fund I Re-ups (Family Offices, HNWIs) $6M<\/p>\n\n\n\n

New HNWIs and Angels $2.5M<\/p>\n\n\n\n

TOTAL $25M<\/strong><\/p>\n\n\n\n

Jelawang Capital: A Thought Leader Partnership<\/h3>\n\n\n\n

Among our Fund II LPs, Jelawang Capital stood out not just for their commitment size but for their role in the ecosystem.<\/p>\n\n\n\n

Jelawang had established themselves as thought leaders in South-East Asian venture, publishing research on emerging manager performance, hosting convenings for GPs and LPs, and advocating for ecosystem development across the region.<\/p>\n\n\n\n

Their due diligence process was rigorous\u2014more intensive than any other LP we\u2019d encountered. But that rigor came with genuine partnership. Once they committed, they became active supporters of our firm, making introductions to other LPs, providing feedback on our portfolio strategy, and including us in their thought leadership events.<\/p>\n\n\n\n

\u201cHaving Jelawang as an anchor LP gave us credibility that we couldn\u2019t have purchased at any price,\u201d<\/em> Rizal later reflected. \u201cWhen other LPs saw that Jelawang had done deep due diligence and committed, it reduced their perceived risk in backing us.\u201d<\/em><\/p>\n\n\n\n

\n

Fund II closed in 14 months\u20144 months faster than Fund I.<\/strong> The difference was our systematic fundraising approach. We had LP coverage across every major category. We had materials ready. We had a process. We weren\u2019t scrambling; we were executing.<\/p>\n<\/blockquote>\n\n\n\n

\"\"
Fund II announced at SuperReturn Asia<\/figcaption><\/figure>\n\n\n\n

Year 5: Fund II Deployment and Fund I Value Creation<\/h3>\n\n\n\n

Fund II First Investments:<\/strong><\/p>\n\n\n\n

With $25M to deploy, Fund II allowed us to write larger checks ($500K-$1.5M) and target slightly later-stage opportunities (seed+ to Series A).<\/p>\n\n\n\n

Fund II investments (Year 5):<\/strong><\/p>\n\n\n\n

\u2022            Investment #1-3: Three seed rounds averaging $800K<\/p>\n\n\n\n

\u2022            Investment #4-5: Two Series A participations averaging $1.2M<\/p>\n\n\n\n

\u2022            Total deployed Year 5: $5.2M (21% of fund)<\/p>\n\n\n\n

Fund I Portfolio Events:<\/strong><\/p>\n\n\n\n

PayMalaysia closes Series A (October, Year 5):<\/strong> $5M round led by Jungle Ventures, a top-tier regional VC. Our follow-on: $200K to partially maintain position. PayMalaysia was now valued at $18M; our position worth approximately $3.5M on $650K invested (5.4x).<\/p>\n\n\n\n

SecureKL acquired (November, Year 5):<\/strong> In a surprise development, SecureKL was acquired by a regional cybersecurity company for $2M. Our $400K investment returned $550K\u2014a modest positive outcome (1.38x) after years of struggle. First actual exit and DPI generation!<\/strong><\/p>\n\n\n\n

AgriTech ASEAN shuts down (December, Year 5):<\/strong> After 3+ years with no commercial traction, AgriTech\u2019s board and founders decided to wind down the company. Our $350K investment returned approximately $50K from remaining cash. Second complete write-off.<\/p>\n\n\n\n

Year 5 Fund I Metrics:<\/strong><\/p>\n\n\n\n

\u2022 Total invested:<\/strong> $5.2M (75% of initial allocation)<\/p>\n\n\n\n

\u2022 Current portfolio value:<\/strong> $11.5M<\/p>\n\n\n\n

\u2022 Distributions (DPI):<\/strong> $600K (SecureKL exit + DataSync wind-down + AgriTech wind-down)<\/p>\n\n\n\n

\u2022 TVPI:<\/strong> 2.15x<\/p>\n\n\n\n

\u2022 DPI:<\/strong> 0.12x<\/p>\n\n\n\n

\u2022 Net IRR:<\/strong> ~26%<\/p>\n\n\n\n

Key Takeaways from Part II<\/h3>\n\n\n\n

For fund managers in their investment period:<\/strong><\/p>\n\n\n\n

1. The J-curve is real and painful.<\/strong> Years 2-5 will feel like failure even when you\u2019re building a successful portfolio. Communicate this to your LPs early and often.<\/p>\n\n\n\n

2. Portfolio mortality is normal.<\/strong> Expect 30-80% of seed investments to fail completely. The key is limiting exposure to losers while maximizing exposure to winners.<\/p>\n\n\n\n

3. Follow-on decisions define returns.<\/strong> Our Fund I returns were driven by concentrated follow-on in PayMalaysia and FinFlow. Spray-and-pray follow-on destroys returns.<\/p>\n\n\n\n

4. First exit matters more than its size.<\/strong> SecureKL\u2019s 1.38x return was modest, but generating actual DPI established our credibility for Fund II.<\/p>\n\n\n\n

5. Build your fundraising team before Fund II.<\/strong> Use the GP Fundraising Team canvas to systematically cover all eight roles, even with a small team.<\/p>\n\n\n\n

6. Fund II timing is strategic.<\/strong> Starting Fund II in Year 3-5, before Fund I exits, is standard practice. LPs understand the cycle.<\/p>\n\n\n\n

Grace Choo\u2019s final perspective on Part II:<\/strong><\/p>\n\n\n\n

\u201cBy Year 5, I\u2019d moved from cautious optimism to genuine confidence in Meridian. They\u2019d made hard decisions, communicated transparently, and generated reasonable paper returns. More importantly, they\u2019d maintained partnership stability through challenging years. Fund II felt like a natural evolution, not a leap of faith. I told them we\u2019d be interested in exploring a Fund III commitment if they could reach $50M.\u201d<\/em><\/p>\n\n\n\n

Read part III: Value Creation, Fund III, and Institutional Arrival<\/a> (Years 6-7).<\/p>\n\n\n\n

If you have not already read it, check out part I, the early years.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Continued from Part I (years T-2 -1). Read part I here, and Part III here. Through the lens of Aisha Rahman, Founding Partner, Meridian Ventures With insights from: Rizal Tan, Co-Founder & General Partner And: Priya Nair, CEO, DataSync (Portfolio Company) The investment period is where fund strategy meets market reality. For Meridian Ventures, Years […]<\/p>\n","protected":false},"author":15,"featured_media":276210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[25,24,11],"tags":[],"ppma_author":[20],"class_list":["post-276209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stories","category-strategy-simulation","category-venture-capital"],"authors":[{"term_id":20,"user_id":15,"is_guest":0,"slug":"christian-rangen","display_name":"Christian Rangen","avatar_url":{"url":"https:\/\/www.strategytools.io\/wp-content\/uploads\/2024\/03\/Christian-Rangen-profile-square.webp","url2x":"https:\/\/www.strategytools.io\/wp-content\/uploads\/2024\/03\/Christian-Rangen-profile-square.webp"},"first_name":"Christian","last_name":"Rangen","user_url":"","job_title":"CEO | Co-Founder","description":"Chris Rangen is a strategy advisor and business school faculty. He works with CEOs, companies, strategy leaders, ecosystem developers, innovation agencies, venture funds, national fund-of-funds and governments on their top strategy and transformation challenges."}],"_links":{"self":[{"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/posts\/276209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/comments?post=276209"}],"version-history":[{"count":3,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/posts\/276209\/revisions"}],"predecessor-version":[{"id":276247,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/posts\/276209\/revisions\/276247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/media\/276210"}],"wp:attachment":[{"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/media?parent=276209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/categories?post=276209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/tags?post=276209"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.strategytools.io\/wp-json\/wp\/v2\/ppma_author?post=276209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}