5 Questions with Malaysian ecosystem builder Bikesh Lakhmichand

MALAYSIA’S startup ecosystem has a firm believer in Bikesh Lakhmichand, founder of venture capital firm 1337 Ventures.

Sensing the lack of resources around the nascent ecosystem in the early days, Lakhmichand started both a training programme and accelerator to aid its development.

Despite having less flash compared to Singapore or Indonesia, Malaysia has been silently punching above its weight. A recent report puts Malaysia’s exit to investment ratio at 1.2 times, the highest in the region, with Indonesia a distant second at 0.3 times.

In this edition of 5 Questions, Lakhmichand tells us why you shouldn’t sleep on Malaysia’s startup ecosystem.

1. What was the most surprising thing about the Malaysian ecosystem you’ve learnt from running iTrain and 1337 Ventures?

It is the incredible resilience and adaptability of our entrepreneurs. When we first started, the Malaysian startup ecosystem was still quite nascent with significant challenges around infrastructure, government support, and access to funding. The tech ecosystem was underdeveloped, with limited resources available to support budding entrepreneurs.

In fact, we were the first accelerator in the country. Recognising the need for a supportive platform, we initiated a space called the iTrain Developer Playground. This community-focused environment was unique in Malaysia, providing a conducive space for learning, collaboration, and innovation. Over time, this evolved into the 1337 Hub, our accelerator, aimed at fostering innovation, encouraging collaboration, and aiding startups in their growth journey.

I vividly recall the early days, particularly how the then MyTeksi team (now globally recognised as Grab) used our space for brainstorming and hack activities. It was incredibly rewarding to see our hub facilitating the growth of what would become one of South-east Asia’s most successful startups.

Throughout this journey, the creativity, determination and resilience of the local entrepreneurial community have been truly awe-inspiring. Despite facing numerous obstacles, these entrepreneurs continue to strive and innovate, showing a level of dynamism that I find remarkable.

Over the years, we’ve seen a dramatic shift in the startup landscape in Malaysia. There are now many more accelerators and co-working spaces available, and the government and investors have begun to recognise the potential of the startup sector. These developments have made the ecosystem much more vibrant.

However, the resilience and adaptability of Malaysian entrepreneurs, who have consistently overcome challenges and driven their startups to success, continue to be a source of inspiration for us. This surprising resilience, coupled with our shared successes, has shaped our approach to nurturing startups at iTrain and 1337 Ventures and confirms our belief in the vast potential of Malaysian entrepreneurs.

2. What excites you about the startups and founders in Malaysia?

It is their immense potential. The spirit of entrepreneurship here is unique, characterised by a sense of grit, inventiveness, and a relentless desire to make an impact. We have a diverse pool of talent, and it’s rewarding to witness these individuals turn their ideas into successful ventures that not only contribute to the Malaysian economy but also have a global reach.

3. What is one thing you would tell your younger self?

If I were to tell my younger self something, it would be: “Don’t fear failure. Embrace it. It’s an inevitable part of the entrepreneurial journey, and each setback is an opportunity to learn and grow. Remember, success is not a linear path but a series of ups and downs. Stick with your vision, and don’t be discouraged by the bumps along the way.”

4. Best advice you’ve received?

The best advice I’ve received was in the early days of 1337 Ventures when a mentor told me: “Focus on building relationships, not just businesses.” This piece of advice has stuck with me throughout my journey. In the world of startups and venture capital, relationships are everything. It’s through these connections that we’ve been able to foster a collaborative ecosystem, bring in investors, and support promising startups in their growth trajectory.

5. What’s the biggest and worst setback you’ve experienced?

It was during the early days of 1337 Ventures when the investment landscape in Malaysia was still in its infancy.

The initial challenge of raising funds for 1337 Ventures was indeed significant. We faced a lot of skepticism from potential investors who were unfamiliar with the startup investment landscape and viewed tech startups as risky ventures. The concept of investing in the long term, with potentially delayed returns, was not a notion readily accepted in the market at that time.

Faced with these challenges, we decided to pivot and adopt a unique approach to sustain our operations and support the startups we believed in. We leveraged our extensive knowledge and experience in the tech startup sector, our ‘accelerator know-how’, and monetised it. This came in the form of providing consulting services, conducting training workshops, and hosting startup events.

We essentially bootstrapped 1337 Ventures using our own capital. This was a risky move, but we had a strong belief in the potential of the startups we were nurturing, and we were willing to invest our resources into making our vision a reality.

This approach was challenging but also highly rewarding. It not only provided us with the funds necessary to support our startups but also positioned us as thought leaders in the Malaysian startup ecosystem. In the long run, this strategy helped to build trust and credibility with potential investors. As we started to see successes from the startups we were supporting, and as the broader ecosystem matured, we gradually managed to shift investor attitudes and secure external funding.

This initial period of self-funding through our unique business model taught us invaluable lessons about resilience, adaptability, and strategic innovation. It was instrumental in shaping 1337 Ventures into the successful venture capital firm it is today.