Weisheng Neo is a General Partner at Qualgro Partners, a leading VC firm investing in tech companies across Southeast Asia with strengths in Data/AI, Software and B2B.

Out of 30 investments, across 2 Funds in 8 years, Qualgro has generated 8 full exits, including 5 acquisitions by international players and one IPO. Notable portfolio companies include Patsnap, ShopBack and Funding Societies.

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👋🏼  How would you explain your job to someone outside tech?

As a venture capitalist, my role is like that of a financial matchmaker for innovative ideas and entrepreneurs. We are trying to look for great founders, in large markets, that are building competitive capabilities (usually in data or software) to service those markets.

Simply put, we provide funding to early-stage founders with promising business ideas or potential for high growth.

Our goal is to invest in companies that we believe will become successful in the long run. In exchange for funding, we usually get some ownership stake in the company. We make our returns when we are able to sell these ownership stakes at much more than when we first invested, typically through the company’s valuation growing exponentially.

Not surprisingly, the job involves a lot of knowledge-building, due diligence to identify and form conviction on the most promising investment opportunities.

You would find this job energizing if you like cross-indexing ideas across several disciplines. Additionally, we often provide guidance, support, and access to our network to help these companies succeed.

In essence, we help to fuel innovation and entrepreneurship by providing the capital and resources required for new businesses to thrive and grow into important, iconic companies.

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🧐  What's something about you or your job that would surprise us?

‍This is obvious to VCs and investors in VC funds but it’s worth emphasizing. The Power Law is well-understood in the venture business – you make returns on the portfolio on the back of a select few outstanding investments.

Given this skewed dynamic, it is more important for VCs to optimize for Type 2 error (reducing false negatives) than to optimize for Type 1 errors (reducing false positives). In most of the investment world, you want to protect downside as losses are disastrous (optimizing for Type 1 error by reducing false positives.

Just think about the lending business). In venture, it is the opposite – you are trying to shoot for the big wins. Understanding this intimately will already significantly improve portfolio construction, which will impact your eventual returns.

This is always somewhat surprising to most of my friends, a majority of whom are not in venture.

Think about most professionals and their motivations (senior executives, lawyers, accountants, bankers, consultants, doctors, politicians etc.), and it’s clear why reducing false positives is in their best interests.

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🏆  What has been the biggest highlight of your career so far?

No single event, but the years I spent in India, China, US have been crucial to shaping my worldview and understanding of business and cultures.

I always say Bombay was where I learned professional skills and a data-driven approach, Philly was where I learned about venture as an asset class, Hangzhou was where I learned about the wonders of technology and importance of execution, and Southeast Asia is where I bring my combined experience to bear as a venture capitalist.

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🔍  What's a startup trend or space you're watching this year?

It’s not new to us but certainly we have had increased focus on the topic – we have been investing in companies with AI capabilities since our inception in 2015, in the process exiting some of them quite handsomely.

As the technology around AI evolves (rapidly), we stay close to what that evolution means for us as investors.

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💼  What advice would you give someone starting out in your industry?

I subscribe to the tenet “Strong opinions, weakly held”. You should have a point of view, but you should keep updating that point of view with new information.

Strive to be well-informed, but not easily influenced. I also find that keeping in close contact with like-minded individuals who share the same values, but have wildly different professional skills is a boon professionally, and a greater joy personally.

I am a big basketball fan and some of the greatest players pride themselves as being “students of the game”. LeBron and Kobe are well-known to be able to recite specific plays and obscure historical facts, and to devour film and absorb knowledge.

I think there’s a strong correlation between successful people in their crafts and their dedication to learn everything there is to learn about that craft.

Venture is about investing in people, with insights on the macro environment and the micro human psyche. The Chinese have these terms: 三观: 人生观，价值观，世界观 (3 views: View on Life , View of the World, View on Values). Developing and strengthening one’s 3 views elevates their own condition, and their perspectives on others’ 3 views – I think makes one a better investor as well.

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🗣  What's one thing you can keep talking about for hours?

I’m not that interesting but when I do find myself still engaged after 3 hours, it’s usually the company that makes it worthwhile.

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🎥  What's your favorite movie/TV show?

Life is Beautiful by Roberto Benigni. Had me in tears when I watched it as a boy. Now that I am father to a son, the messages of sacrifice, love, fatherhood hits home even harder.

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🍨  What's your go-to ice cream flavor?

Tillamook Peppermint is a surprising revelation—it converted my previously peppermint-hating wife to an ice-cream chugging machine.