Joseph Phua | Why Vertex Ventures Isn't Just An Investor; They're Family

| 18 Sept 2023

Entrepreneurship is a long, tough, nerve-wreaking journey. The lives of entrepreneurs are a complex web of dreams, challenges, victories, and setbacks. But the journey becomes a lot smoother when you have the right partners on your side to navigate the labyrinth. I learned this firsthand through my long-standing association with Vertex Ventures Southeast Asia & India.

I started my startup journey as cofounder of Paktor, #1 Asian dating social app back in 2013. My past 10 years journey was full of ups and downs.

2013: I don’t need the money

Our fledgling startup, Paktor, climbed its way up the app store rankings. At that time, Vertex Ventures approached us. In a misplaced sense of confidence, I declined their offer, stating, "we don't need money." But time has a way of proving you wrong, and I’ve learned my lesson.

2014: A 180 degree change in circumstances

A year later, our funds dwindled, and the future looked uncertain. I doubled to Vertex in 2014, and they kindly overlooked my past ignorance and saw the potential in our team and decided to invest. This was the lifeline we desperately needed.

2015: Things took a turn when an investor pulled out at the last minute. Vertex stepped in and said, "Forget them, we'll do it, let's go."

2016: 2016: In another tight spot, when a three-party lead round saw one back out at the eleventh hour, Vertex said, "Just go, 2 leads, if anything we'll back you. Tell the rest of the shareholders Vertex has your back." We also merged Paktor with 17 Media, a livestreaming service to form M17, a social entertainment company.

2017: My vision then veered towards listing. Despite potential reservations, Vertex stood by me.

2018: Before the listing in NYC, Vertex told me "We got you Jo, don't worry about any holes, if it comes to it, we'll back you." After the ill-fated listing, Vertex said, "No rush, no worry, raise your bridge, we'll be your #1 backer".

2019: When an acquisition offer came in, Vertex was ready to rally the troops, promising to speak to the rest of the shareholders on our behalf.

2020: I wanted to take time off to spend with my family. Vertex assured, "Take the time you need to spend with your family, whenever you're ready."

2021: My family office acquired a company and Vertex asked, "Are you backing it? If you are, we want in."

2022: Vertex invests in a company, reaches out "Hey Jo, great company we're investing in, you want in? Put in whatever you want, big or small, great company to invest in, It will do well." It has gone up many times since.

Vertex Ventures is more than just an investor. They're a pillar of strength, a guiding force, and above all, family. I’ve come to understand that venture capital is not just about the dynamics of investment; it's about relationships, trust, and mutual growth. Vertex Ventures, through the years, has exemplified the essence of true partnership.

I was recently on Hard Truths by Vertex podcast, sharing about how I navigated the startup journey to build a company with billion dollar in revenue. Click here to hear the podcast.

About Joseph Phua

Joseph Phua is chairman and co-founder of VVSEA&I portfolio company, 17LIVE Inc., a social live-streaming platform. He also holds concurrent roles as Chairman at Turn Capital and the SoundOn Group and has recently started the fast-growing Next Apple News media platform.

Before this, he founded Paktor, a pioneering dating app that has expanded beyond Singapore to the rest of Southeast Asia and North Asia, to form the largest social dating group in the region. Joseph holds a BSc in Finance from NYU Stern and an MBA from Chicago Booth.

HTBV Podcast

Joseph shared about how he navigated the startup journey to build a company with billion dollar in revenue. Click here to hear the podcast.

In This Episode

(00:53) Sound On acquisition and building a portfolio of startups

(03:27) How 17LIVE was formed

(06:28) Vertex’s role in their success

(08:55) The NYSE listing that never happened

(11:32) Hard Truths for entrepreneurs

(13:59) Changing trends in content distribution and monetization

(17:27) Not being sure about doing the right thing

(19:41) The future of content and media businesses

(23:48) Variables affecting content businesses

(26:42) Closing thoughts

Links

Notes and Full Transcript for Episode 8.

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