GGV Capital managing partner Jenny Lee has seen plenty of market cycles. Nine, she says, in her 22 years in the venture capital industry. Amid these cycles – some large, others a blip – her advice to startup founders has remained unchanged.
“I like to tell our portfolio companies, don’t look to us, the private market [for cues]. Look to the public market because Mr. Market is always right, no matter how you want to fault it and how many reasons you give,” Lee said during a fireside chat at DealStreetAsia’s Indonesia PE-VC Summit 2022 last week.
As founders and investors face a multitude of challenges, including the implications of inflationary pressure, currency instability and geopolitical tensions, this is not the time to launch an IPO, Lee advised.
“You can go public now, but most international investors are on the sidelines. You could be the best company ever to hit the public market, but I think you’re still going to find it tough to get through the roadshow and build a respectable book of demand,” she said.
But there is hope yet for both investors and founders, she emphasised. History has shown that periods of chaos have always spurred innovation and established great businesses, be it Google, Alibaba or Tencent.
“At the end of the day, I believe in being consistent and long term in view. Directionally, we are positive and bullish. I think as we navigate this broader environment, it definitely pays to be more cautious. So holding the bar high, having open communication with our founders becomes very important,” said Lee.
Edited interview transcript with Jenny Lee, managing partner, GGV Capital:
