Financial resilience and startup traction

The Singapore supply chain industry has undergone significant changes over the past year due to the pandemic, geopolitical and structural trends, and challenges in inventory management. Marc Dragon, Managing Director, Reefknot Investments, a venture capital firm, notes that startups have been trying to address inventory allocation and understanding changing demand patterns, in addition to digital freight processing. He further highlights that startups that address industry problems and focus on financial resilience tend to have better traction and valuation.

When it comes to selecting startups for funding, Reefknot Investments looks for those that are transformative and have the potential to disrupt the industry. Startups that focus on new business models or technologies to transform the industry are of interest to the firm. The ability to generate profits is another key factor considered when selecting startups for investment.

Although startup funding has slowed down, sector-focused VCs continue to deploy investments, while general VCs tend to be holding back or deploying smaller ticket sizes. Despite this slowdown, Reefknot Investments remains optimistic and continues to invest in startups that show potential for industry transformation and profitability.

To know more, watch the full interview.