Fandy Cendrajaya is a Partner at Kopital Ventures, one of the most respected and active pre-seed investors in Indonesia. He’s on the front lines, evaluating hundreds of early-stage companies and seeing firsthand what separates the startups that get funded from those that don’t.
In this interview, we discuss the current fundraising climate. He shared his unfiltered advice on what founders need to demonstrate, the common mistakes to avoid, and how to build a resilient company that can thrive in any market.
Let’s be direct: How has the bar for a pre-seed investment at Kopital Ventures changed over the last 24 months? What does a startup need to show today that they might not have needed before?
The bar for pre-seed investing has risen significantly across the board, and Southeast Asia is no exception. What once passed for a compelling pitch, typically a slide deck, a charismatic founder, and a compelling vision, now requires far more. The environment has shifted from rewarding potential to demanding proof. At Kopital Ventures, we now look for founders who are not just dreaming big but building intentionally, with clear executional evidence. This means having an early version of the product in users’ hands, a thoughtful go-to-market strategy, and early indicators of traction through retention, usage, or a clear path to acquiring high-quality customers. Most importantly, we’re seeing more founders building with deeper purpose, not just to raise a round or secure media headlines, but because they believe their solution deserves to exist in the world. That kind of intentionality is far more investable in today’s environment.
From your perspective, what is the single biggest mistake you see pre-seed founders making when they pitch to you in this market?
One of the most consistent mistakes we see is a fixation on vision without the supporting scaffolding of execution. There’s often an overreliance on analogies, “we’re the X of Southeast Asia,” paired with market size slides that aren’t grounded in local realities. But ambition without operational grounding isn’t enough anymore. In this region, where fragmentation, regulation, and cultural nuance play a huge role, the most successful founders are those who move beyond storytelling and into tangible action. Another red flag is founders who appear more focused on fundraising as a goal in itself, or chasing press and public appearances, rather than building a durable company. When a founder spends more time refining their fundraising optics than refining their customer onboarding flow, we know the priorities aren’t aligned with long-term company building.
When you hear the word “traction” at the pre-seed stage, what specific signals are most compelling to you right now? Is it early revenue, a signed pilot, or something else?
At this stage, traction is less about scale and more about signal. We’re looking for evidence that the founder has clarity on who their customer is, how to reach them, and how to deliver value in a differentiated way. That often shows up in the form of a clear go-to-market strategy, not just “we’ll run ads,” but a concrete understanding of which channels will yield high-quality users and how those users are converting, retaining, and even referring others. It’s especially powerful when a founder can articulate why their product is structurally better or more contextually relevant than the incumbents. That kind of differentiation matters enormously in Southeast Asia, where the battle is not just for market share, but for mindshare in markets saturated by familiar alternatives.
In a downturn, investors often say they bet on the team. Beyond a strong background, what specific qualities are you looking for in a founding team that signal resilience?
Truly resilient founders are defined not just by their ambition, but by their self-awareness, adaptability, and depth of conviction. These are the people who are deeply reflective, open to criticism, and agile in the face of changing conditions. They don’t romanticize their own roadmap. They iterate fast, learn constantly, and respond to feedback without ego. They are also flexible enough to pivot without compromising their principles, and humble enough to admit when something isn’t working. Most importantly, resilient founders are all-in. They’re not dabbling. They’re putting their lives on the line. Whether it’s bootstrapping their first version, going months without a salary, or pouring every ounce of energy into serving customers, they’ve made the emotional and personal commitment to see this through. That kind of founder doesn’t just survive downturns. They build through them.
“Capital efficiency” is a popular term right now. Can you give a tangible example of what a capital-efficient pre-seed startup looks like to you?
Capital efficiency isn’t about being frugal for the sake of optics. It’s about being deliberate with every dollar. We love backing founders who treat capital as a tool, not a crutch. In Southeast Asia, that means teams who build scrappily, test quickly, and know how to acquire customers without blowing the bank. These founders aren’t obsessed with growth at all costs. They’re obsessed with building a business that works. They care about gross margins. They understand cash conversion cycles. They know their CAC, even when the sample size is small. More importantly, they’re building as though they might not get another check, and paradoxically, those are the companies that often end up attracting more capital later on.
What is the single most important piece of advice you’d give to a founder trying to extend their runway and survive this downturn?
The most effective way to extend the runway is not just cutting costs. It’s achieving clarity. Founders need to know what truly matters and double down on that. Every dollar and every hour should be tied to validating product-market fit or generating revenue. Anything else, whether it’s vanity features, bloated hires, or unnecessary overhead, needs to be paused or eliminated. At the same time, founders should model multiple scenarios, including no new capital. It’s important to create a culture where everyone on the team understands the stakes, the direction, and the constraints. Transparency builds trust. And the irony is, when you build as though no external funding is coming, you often become far more attractive to investors who are watching from the sidelines.
How should founders think about valuation in this market? Is it better to take a lower valuation to close a round quickly, or hold out for a better number?
Valuation should be treated as a strategic tool, not an emotional badge. In the current market, we’re seeing smarter founders approach valuation with restraint, not because they lack ambition, but because they understand the implications. Raising too high, too early can create unrealistic expectations and box founders into uncomfortable corners later on. If you can’t hit the milestones needed to justify your last round’s valuation, you risk down rounds, stalled momentum, or worse, loss of team morale. Southeast Asia is also maturing as an ecosystem, and many founders now understand that building toward meaningful exits or M&A outcomes matters. Optimizing for sustainable ownership and alignment with the right partners often yields better long-term results than chasing the highest headline number.
Beyond the pitch, how important is it for founders to build relationships with investors before they officially start fundraising?
It’s incredibly important, especially in Southeast Asia, where trust carries disproportionate weight. Fundraising is a relationship-driven process. The strongest rounds we’ve seen didn’t start with a pitch deck. They started months earlier with coffee chats, regular updates, and genuine conversations. Founders who treat investors like long-term partners rather than transaction points are the ones who raise faster and more meaningfully. A cold outreach might get a meeting. A warm relationship gets conviction.
What convinces you to write that first check and lead a pre-seed round when other investors might be hesitant?
We don’t need consensus to act. We need clarity. What gives us conviction is when a founder has deep, earned insight into a real problem, paired with a product and go-to-market approach that demonstrates they understand the user better than anyone else. It’s not about hype or early revenue alone. It’s about clarity of thought and sharpness of execution. And especially in Southeast Asia, we look closely at how a product is positioned relative to incumbents. If a founder can show that they’re not just a cheaper alternative but a meaningfully better one, for the right segment, at the right time, we’ll often lean in early, even if others are waiting on the sidelines.
What’s an immediate red flag for you in a founder meeting or a data room that makes you pass on an investment?
The biggest red flag is misalignment in focus. If a founder seems more focused on raising capital, attending events, or managing their media profile than on solving their customer’s problem, we’ll quickly lose interest. Startups are built in the trenches, not on stage. Another red flag is a lack of grasp over basic business fundamentals. A founder who can’t speak fluently about burn, runway, gross margins, or customer acquisition likely isn’t operating with the level of control needed to survive long enough to succeed.
How do you view the Southeast Asian market specifically? Are there unique challenges or advantages for founders building here during a global downturn?
Southeast Asia remains one of the most structurally attractive regions in the world. The demographics alone are compelling: a young, increasingly urbanized, mobile-first population that is moving rapidly into the digital economy. But we need to be honest. Southeast Asia is not one market. It’s many. Each country has its own regulatory environment, infrastructure gaps, language barriers, and consumer nuances. That complexity creates friction, but also deep defensibility for those who navigate it well. Importantly, Indonesia is still the crown jewel. With over 275 million people, it is simply too large to ignore. If a founder wants to build a multi-billion dollar company with a Southeast Asia-only footprint, operating in Indonesia is almost mandatory. Without it, the scale just isn’t there. We look very closely at how regional companies are planning for Indonesia, not just from a sales angle, but from a product, team, and distribution lens. It’s the growth engine of the region.
Looking ahead 12-18 months, what is your outlook on the pre-seed fundraising environment in this region? Do you see it getting easier, harder, or just different?
We believe the pre-seed environment in Southeast Asia will remain selective but active. The easy capital is gone. The spray-and-pray rounds are behind us. But what remains is a more focused, thoughtful capital base, one that values depth over hype, clarity over momentum. The founders who will thrive are those who build with intentionality, know their numbers, and treat fundraising as a tool rather than a trophy. This current cycle isn’t a pause. It’s a reset. And historically, resets are when generational companies are born. We think the next iconic companies in this region are already being built, quietly, relentlessly, by founders who are all in.
