Depending on their own risk appetite and expertise, venture capitalists and investors enter at different stages of a start-up’s lifecycle. Launcho Ventures, which describes itself as a “venture studio”, is keen to hold the hands of start-ups right from the conception stage.
“It’s somewhat like investing in a PowerPoint presentation,” says Martin Berry, founding partner of Launcho Ventures. The company specialises in helping pre-seed Series A start-ups secure funding from institutional investors and venture capital (VC) firms.
“Say you have a really interesting idea that you’re deeply connected to and you are really motivated to do something about it. But you’re not sure where to start so you look for people like us,” he explains.
“We are not a VC fund. We don’t go to investors or limited partners (LPs) and tell them this company will be worth some double the amount in X amount of years. Our investment model is quite unique. We are pioneering the ‘venture studio’ model.”
The start-ups Launcho decides to invest in will be invited to join its venture studio. These start-ups will then be provided with an office space, a basic monthly salary of about $3,500 for each staff, access to Launcho’s network as well as funding of up to $300,000.
“We try to help take a little bit of financial pressure off the companies and make it a little bit easier, because when you start a company by yourself, you sometimes don’t end up having a salary,” says Berry.
Berry is funding the venture studio on his own. While he claims he could retire right now, he says he is doing this to help the next generation, especially during the current Covi-19 pandemic environment.
Compared to other incubators, accelerators or VC firms, Launcho prides itself on its patience. Berry claims he will not rush a start-up to reach revenue targets quickly. Instead, he prefers to gauge them via milestones, such as when the prototype of the product is completed or when the product is finally ready to be introduced to the market. That is because he believes for start-ups at such an early stage, ample time and space must be given to them to flourish.
Started only early last month, Launcho says it has already received “a significant amount of applications” and has started some ventures. Although these have yet to be announced, Launcho reveals they are in the business of pet wellness, eSports, and female wellness and hygiene.
While Launcho is new, Berry is no stranger to helping start-ups reach their potential. He was working inglobal banks before deciding to go into business for himself.
“I had always wanted to pursue my entrepreneurial ambitions. So, I started a couple of sort of side hustles in terms of tech start-ups, but they soon became conflicts of interest with my existing employment. So, I had to give them up,” says Berry, who has personally made about 50 investments in early-stage tech start-ups.
Luckily, with experience in both the banking and tech sectors, Berry was familiar with the risks of starting a company from scratch. To mitigate the risks, he ended up investing in early-stage start-ups instead.
Despite being Australian, Berry’s biggest pride was his investment in a decidedly Asian consumer product: Bubble tea. Specifically, he invested in bubble tea brand Gong Cha that is now a global phenomenon. Intrigued as to why Singaporeans were so enamoured with bubble tea, he had wanted to introduce it to Korea and Japan.
Together with help from his Korean wife, Gong Cha went from zero to 400 stores in Korea within three years while the brand managed to rake up higher sales than Starbucks in Japan.
Berry, along with a private equity (PE) firm, also bought a majority stake in Royal Tea Taiwan, Gong Cha’s holding company. A few years later, they sold the stake to another PE firm, TA Associates.
He insists he founded Launcho to help start-ups in their journey.
“I am not a one-hit wonder. I have a track record of building companies and exiting my investments. I have achieved this several times. My real passion is working with people who are motivated and smart, and who want to make a difference. That’s what gets me excited,” says Berry.
