Nicholas Ooi

Friday rant time. Investors don't take risks. Everyone wants Tier-1 background.  Nobody is out there for the little guy. Sharing a brief breakdown of VC economics (deep dive link in comments). VC is NOT charity, it's pure financial services. The NUMBER ONE metric we're measured by (for older funds) is DPI, fancy term for how much money you've given back. 1x, shut shop and go home. 2x, better, but still bad. 3x, now you have a reason to live. (for folks wondering how young funds are measured, it's typically MOIC + IRR, basically, how are companies you've invested in performing at present). Assume a ₹200 crore seed stage fund. Needs to give back ₹600 crore at least. Ignoring fees and expenses, you can invest ₹10 crore in 20 companies, for 10% each. Since it's quite clear (Fractal, Zomato, BlueStone, Nykaa) that it takes 12-14 years to IPO a startup in India, you can't wait that long (fund life is 10 years). So you have to exit to Series C/D investors who WILL want a discount. Assume 3 rounds of dilution, leaves you with ~5%, 20% discount, so 4% held. Seed has ~75% mortality rate, so 5 companies left. These 5 have to get you ₹600 crore. At 4% held: 1 company needs to raise at ₹15000 - Just NOT happening 2 companies raise at ₹7500 - Still VERY unlikely 3 companies raise at ₹5000 - Closer 4 companies raise at ₹3750 - Possible 5 companies raise at ₹3000 - More possible ^This is also the price Minimalist was acquired by HUL, which was an OUTLIER outcome and first of it's kind for consumer startups. The above should illustrate how hard the business is. Hence when funds insist on backing folks with successful exits, strong corporate careers, or absent both, just a great educational background, is maximizing luck. At Seed, there are two things that swing it for you. I call it Numbers & Story. If you have a GREAT story (I sold my last company for ₹500 crores), you can have ~no numbers. If you have a good story (I was VP Google India), once again, numbers are lower priority. If you're 22, from a small town college, breaking it down harshly, you NEED numbers. As an investor, we just DON'T ignore amazing growth. That being said, since this is a (very hard) financial business, we're looking at any and every indicator of possible success. Experience here helps in two ways: - Have already made dumb mistakes on OTHER peoples money - Have a network who will pick up the phone and help you/become first customer #venturecapital #startups #funding

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🔥 A DeFi protocol with ~11 employees is now doing more volume than Robinhood, and you have never heard of it. It's called HyperLiquid and its the most important platform in finance right now. In traditional finance, scale and infrastructure usually come with headcount, compliance layers, and media attention. Hyperliquid flips that model on its head. Running a decentralized trading platform that completely changes how markets function. Built on its own purpose built Ethereum like blockchain, it facilitates high frequency derivatives trading with the efficiency of Nasdaq, but no custodial risk, corporate bottlenecks, or 'trading hours". The numbers are hard to ignore: 💰 $400 billion in montly trading. 💰 $106 million in monthly revenue (August 2025) 💰 More volume than Robinhood in July, with 90% fewer employees But what’s even more interesting is the governance. Hyperliquid runs with no venture capital and minimal marketing. It aligns directly with its users and validators through onchain incentives and decentralized governance. It's token went primarily to traders and early participants, not insiders. It’s lean. It’s efficient. and run on a new kind of exchange infrastructure which is global, real-time, and fully programmable. Why it matters: - For allocators, it represents a working model of what next gen financial rails will look like, lower cost, higher throughput, 24/7, and with full transparency. - For infrastructure investors, it’s a signal that Crypto is maturing to take over TradFi. The core question is what happens when markets no longer have gatekeepers? All of this builds up to something bigger. In my next post, I’ll unpack how Hyperliquid is the future of growth and power distribution through incentive alignment, and how WallStreet might actually be rekt.

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2009: The financial crisis had crushed fundraising. Barely any new capital went into venture funds. Yet the vintages from those years went on to deliver some of the strongest returns in history. Fast forward to today (2024/2025): Venture capital fundraising is at its lowest point in more than a decade. What does that mean? - ⁠Less money will be available to startups over the next years - The bar for raising capital goes up again: quality matters - ⁠Entry valuations will reset to saner levels --> Funds raised now are likely to outperform, just as history shows The paradox of venture: the best time to commit capital is exactly when most people hesitate. Investors (Limited Partners) should lean in now, not when the next boom makes it easy.

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How do you start a VC fund in Australia? Short answer: don't do it. And that's not my selfish self speaking to have less competition :P It's predominantly cause most people will want to do it for the money. Unless you have some very rich friends, you won't make a lot of money for a good ~5 years. The way to do it: 👉 unreasonably crazy obsession with founders 👉 you got money to sustain you for a few years 👉 you truly want to do this for the rest of your life (if unsuccessful you go into painful zombie mode) (if successful there's no easy way out for a very long time) Assuming that's you >> How? 1. Thesis - how are you different? Access, Selection, Help 2. Pitch - lock in a cornerstone who won't waver 3. Legal docs - get them on the way, depending how confident you feel you can do it in parallel 4. FundOps - put your processes in place 5. Invest - the fun part 6. Report - the less fun part Do it for a very long time. The Long Answer: 1️⃣ Pre-Launch (6–12 months before fundraising) Define investment thesis (stage, geography, sector, ticket size). Model fund economics (target size, management fee, carry, GP commit). Choose structure: Limited Partnership with GP + Management Company + apply for VCLP/ESVCLP tax status (for tax benefits). Line up service providers: Legal Fund admin Auditor Compliance consultant (AFSL pathway) 2️⃣ Phase 2: Regulatory & Legal Setup Management company incorporated (earns management fee + carry). Fund partnership registered with ASIC. VCLP/ESVCLP application lodged. AFSL strategy decided: Apply for own AFSL (takes 6–9 months), or Appoint responsible entity / authorised rep under a third party’s AFSL. Draft fund docs: Limited Partnership Agreement (LPA) Information Memorandum (IM) / Private Placement Memo (PPM) Subscription Agreement Compliance manual & policies 3️⃣ Fundraising (6–18 months) Anchor LPs secured (ideally 20–30% of fund target). Pitch materials prepared (deck + IM + fund model). Soft commitments collected before first close. First close once you have enough, final close can be ~18 months later 4️⃣ Fund Operations (post-first close) Capital calls process in place Bank accounts & custody arrangements set up. Portfolio company support framework ready (network, mentors, LP intros). Quarterly LP reports template & cadence locked. Annual audit and ASIC filings schedule. ESVCLP/VCLP compliance monitoring ongoing. 5️⃣ Deployment & Management Investment committee formally established. First deals sourced and approved. Post-investment support systems (mentorship, board seats, reporting). Track fund KPIs (TVPI, DPI, IRR). Regular LP updates 6️⃣ Long-Term (Years 5–10) Second/third close if not fully raised at first close. Portfolio reviews & write-ups annually. Fund II preparation begins once Fund I ~70% deployed. ~~~ ~~~ ~~~ ~~~ What is this? NOT financial advice! Day 29/30 - I'm posting one VC fund insight per day this month.

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10 years ago, if you had $100M in ARR, $1B public enterprise valuation and strong top-line growth, you were likely going to IPO. Companies went public with less maturity, and the market was hungry for growth stories. Today, the bar is closer to $500M+ ARR, $7.5B+ public enterprise valuation, and you need to be growing 30%+ YoY. In addition, public investors expect significant float when only ~10% of shares are sold at the IPO, which means raising $750M–$1B at the offering. And they want to see the potential for that company to grow toward $100B in enterprise value. With so much private capital available, companies like Stripe and Databricks have delayed going public (while in many ways, running like a publicly traded company). But these are outliers IMO. Going public is still the north star for any company. You gain stronger enterprise credibility, immediate market feedback, and a bigger brand presence by being a public company. And importantly, public companies must be more efficient and transparent, having to report performance numbers to the government, shareholders, and board members. If you have the right ingredients, including predictable revenues, operational discipline, and durable growth at scale, you should no doubt go public. That’s what separates companies that are simply big from those that are truly Companies of Consequence.

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17 years. 14 early-stage bets. Some billion-dollar exits, some $1 write-offs. This is what I learned building one of Australia’s earliest first-cheque VC funds: • Founders > ideas • Ecosystem matters • Policy is leverage • Timing is brutal 👇 Full breakdown in the carousel below.

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