Deeptech innovations are taking centre stage in the investment scene. Startups in this region are just beginning to push the boundaries of technology, addressing critical global challenges, and tapping into vast, underserved markets. As these companies emerge, they offer solutions to some of the world’s most pressing issues, from environmental sustainability to healthcare.
In order to explore the trend or movement, we reached out to Vickers Venture Partners, a leading venture capital firm with a focus on deeptech. With a mission of “Funding A Better World,” the venture firm actively seeks startups that not only demonstrate technological prowess but also possess the potential to create meaningful social and environmental impacts. By targeting sectors like global warming, pollution, and public health, they ensure that their investments are both profitable and impactful.
We try to navigate the deeptech investment landscape in Southeast Asia
In our interview, Dr PohHui Chia, Director at Vickers Venture Partners, shares insights into how Vickers Venture Partners identifies and evaluates potential deeptech investments in Southeast Asia. The conversation delves into specific examples of successful investments made by Vickers, showcasing how these startups are making significant strides in their respective fields. From wearable dialysis systems to digital performance management software and biodegradable biopolymers, these companies exemplify the innovative spirit and potential of Southeast Asia’s deeptech ecosystem.
The interview also explores the evolving investment landscape for deeptech in the region over the next five to ten years. As infrastructure improves and regulatory environments become more supportive, Southeast Asia is poised to become a major hub for deeptech innovation. This presents vast opportunities for investors and entrepreneurs, positioning the region as a key player in the global tech industry.
How do you identify and evaluate potential deeptech investments in Southeast Asia, and what key criteria do you consider most critical?
Vickers Venture Partners is a deep-tech VC and we look for startups that are pushing the boundaries of technology. We’ve taken a ‘Funding A Better World’ approach to our investing by selecting companies with solutions that can make the world a better place. We’ve found that when a company addresses an issue that is highly relevant to many of the world’s major problems, e.g. global warming, pollution, obesity etc., they are inherently targeting a large and essential market. As investors, we prefer investing in companies where they have a large and ready market with little to no market risk.
We prioritise companies that demonstrate a strong potential for innovation and disruption within their respective industries. Key criteria that we look at for each startup include the uniqueness of the technology, robustness of their IP portfolios, scalability of the business model, the strength and experience of the founding team and their understanding of the market and any regional expertise in SEA.
We emphasize identifying technologies that have a broader impact and actively seek out startups and entrepreneurs dedicated to creating positive social and environmental impact. Vickers has backed some of the most exciting companies tackling problems such as plastic pollution, energy sustainability, and intractable and prevalent diseases including osteoarthritis, obesity, kidney failure, and infectious diseases.
Can you share examples of successful deeptech investments your firm has made in Southeast Asia?
In Singapore, Vickers has invested in AWAK Technologies which is developing a wearable and ultraportable peritoneal dialysis (PD) system that enables patients to undergo dialysis at home as well as on the go. This overcomes the challenge of long hours of stationary therapy due to being connected to large-size dialysis machines at hospitals and clinics. This inconvenience disrupts the lives of all kidney failure patients can cause mental health issues and stresses patient caregivers and families. AWAK’s sorbent technology has enabled them to miniaturise a PD dialysis machine to fit a small handbag and dramatically reduce the volume of dialysate required for treatment. The portability reduces the burden of therapy and increases the patient’s quality of life by providing them with convenience and time. Due to the innovative nature of AWAK’s device, they were granted US FDA Breakthrough Device designation. In addition to the portability, the device allows for remote monitoring which enables patients and clinicians to monitor dialysis, ensuring complete care management.
In Malaysia, we invested in Entomo, a leading digital performance management software company, that was pivotal in developing an advanced healthcare management system for the Government of Malaysia called “MySejatera”. The mobile application was crucial in Malaysia’s response to the COVID-19 pandemic. During the pandemic, Entomo’s system enabled efficient tracking of cases, management of resources, and dissemination of critical information, significantly contributing to the country’s effective containment and mitigation efforts. Building on this success, Entomo has expanded its services to further digitise Malaysia’s healthcare system, offering solutions that encompass electronic health records, telemedicine, and integrated health management platforms. This expansion aims to create a more connected, efficient, and resilient healthcare infrastructure for Malaysia, ensuring better health outcomes and preparedness for future health crises.
Headquartered in both Singapore and the US, RWDC Industries is a biotech company that has developed advanced microbial fermentation technology to convert plant-based oils into PHAs (or polyhydroxyalkanoates), a family of naturally occurring biodegradable biopolymers that can replace plastic materials. RWDC’s PHAs — Solon™ — are certified by TÜV Austria to be fully biodegradable in soil, water, and marine conditions. Solon™-based products have been shown to degrade with no toxic residue. Solon™ is an ideal material to replace petroleum-derived, single-use plastics for applications including diapers, cutlery, cups, bags, plates, and bowls.
What role do ethical practices and environmental impact assessments play in your investment decision-making process?
When evaluating investment opportunities, we focus on emerging technologies rooted in scientific discoveries or engineering innovations within expanding fields such as biotech and healthcare, artificial intelligence, advanced materials, robotics, photonics, and quantum computing. These technologies aim to address some of the world’s most fundamental challenges.
Vickers has always emphasized responsible investing. We have made significant strides in incorporating Environmental, Social, and Governance (ESG) considerations into our investment decision-making process as well as playing a role in guiding our companies to think about various ESG-related considerations in how they operate. We recognize that sustainable and responsible investing is not only beneficial for society and the planet but also enhances long-term financial performance. As such, Vickers continues to work to drive positive change to build companies that are not only financially successful but also environmentally and socially responsible.
One example of a company in our portfolio making an impact on the environment is Eavor, a clean energy company focused on advanced geothermal technology, led by a team dedicated to creating clean and reliable energy for the future on a global scale. Eavor’s solution, Eavor-Loop™, represents the world’s first truly scalable form of clean, baseload, and dispatchable power. It achieves this by mitigating or eliminating many of the issues that have hindered traditional geothermal solutions. As a completely closed-loop system, Eavor boasts no fracking, no greenhouse gas emissions, no earthquake risk, no water use, no produced brine or solids, and no aquifer contamination.
We also believe in leading by example, and our internal ESG processes apply the same rigour we expect from our portfolio companies. By prioritising these considerations, we ensure that our investments not only generate financial returns but also contribute positively to society and the environment. This fosters sustainable and responsible innovation, aligning with our philosophy of “Funding A Better World.”
In your experience, what are the benefits of integrating ethical considerations into investment decisions, both for the companies you invest in and for your firm?
Making responsible investment decisions brings several benefits.
For the companies we invest in, not only are they contributing to positive social and environmental outcomes to drive impactful change, but it also foster a culture of responsibility and integrity. This can lead to stronger governance, operational efficiencies and a lower risk of regulatory issues. We believe that establishing ethical practices and sound corporate governance early on in a startup’s journey helps to establish a strong ground for the company’s long-term success and is the key to enduring companies. We’ve seen that startups that operate with this ethos build stronger trust with their stakeholders and attract better talent.
For us as an investor, a portfolio with more sustainable and resilient companies helps to mitigate investment risks and improves the long-term growth of the portfolio. In aligning our portfolio companies with ESG principles, they often exhibit stronger operational performance, better risk management and increased innovation, which can result in higher financial returns. We’ve also noticed that many financial investors are increasingly prioritising ESG factors and responsible investing decisions. As such, our alignment with these values has enhanced our funds’ reputation to build long-term trust and helps to attract like-minded partners.
How do you see the investment landscape for deeptech evolving in Southeast Asia over the next five to ten years?
Looking ahead, we anticipate a continued focus on sustainability, with green technologies and solutions emerging as key areas of interest. Sectors such as healthtech are expected to attract increased attention. There will be a growing focus on cutting-edge technologies such as artificial intelligence, biotechnology, quantum computing and advanced materials. In SEA, we may expect to see local startups develop technologies to address local problems to tailor to the unique needs of the SEA markets.
SEA is starting to build significant infrastructure such as innovation hubs, incubators and accelerators to support the growth of deep tech startups. Many countries are also investing in education and training programs to build a robust talent pool capable of driving deeptech innovation. Alongside partnerships between academia, industry and government, we expect the deep tech innovation ecosystems in SEA to grow and become more competitive.
For Singapore in particular, we see the niche to be deep tech investments because Singapore has invested disproportionately compared to other countries in long-term R&D and has a wealth of capabilities and talent that can be leveraged for global markets. In the last two decades, Singapore’s investments have been largely in biotech and engineering.
As regulatory environments become more supportive and the ecosystem matures, Southeast Asia is set to become a major hub for deep tech innovation, offering vast opportunities for investors and entrepreneurs alike.