Payfazz CEO Hendra Kwik Participates as LP and Global Venture Capitalist Partner "MAGIC"
With the same task, Hendra also participated in a local VC named Number Capital
MAGIC, a global VC for early stage funding managed by a group founder startup, announced a second fund under management of $30 million (over 435 billion Rupiah). The funds will be fully reinvested in early-stage startups with nominal values ranging from $100 thousand-$300 thousand across various sectors and geographies.
One-third of the total funding came from LPs at MAGIC, including Michael Seibel (Y Combinator), Tim Draper, Ace & Company. On this occasion, MAGIC also introduced a number of new partners, one of which was Co-Founder & CEO Payfazz Hendra Kwik, who also became LP in this round.
To DailySocial, Hendra explained that he was tasked with increasing MAGIC's portfolio in Southeast Asia and India. Total fund it will be divided equally among five to six continents, so it is not specific to any one country. In this area, Hendra will work with Elvis Zhang, founder startup from Singapore Oxy2.
On his first debut in 2017, through fund first, MAGIC has invested in 70 startups worldwide since the funding round pre seed and seed in a number of developing countries. Some of the names are Payfazz, Novobank, Frubana, Mono, and Retool, which are now highly valued.
Separately, in official statement, fund these two are present because the MAGIC team believes in their thesis, “small funds run by various” founder provide the best returns on early stage investments”, proven to have a real impact.
MAGIC view founder experienced investor (experienced founders-turned-investors) it redefines early stage VC as it's known all along. Because, founder it wants to know that the person they are taking money from has direct experience.
With this model, founder startups receive capital directly from advisor who helped, also compensated founder invested on their advice. This approach is exactly what AngelList, a startup ecosystem platform from the United States does.
Hendra is interested in joining MAGIC because it fits his vision of wanting to help more founder early stages, particularly in Southeast Asia, with more capital and assistance. He understands the various challenges at the beginning of setting up a startup which is often difficult to build a good product because it requires a lot of capital injection.
"Because I want to be with each other" support [to each other founder startups]," he explained.
Not only MAGIC, with the same vision, Hendra also participated as a partner and LP in Number Capital since 2016. This local VC also focuses on startup funding from the initial to the advanced stages. Hendra said, the presence of MAGIC and Number complement each other because they have the same way of thinking "founders backing-helping founders. "
For him, when paired with Number and MAGIC it is like EV Seed and EV Growth, or Sequoia and Sequoia Growth, or Y Combinator and Y Combinator Continuity, and so on.
Personally, he often sees founder who have difficulty with the startup or are confused about how to do it pre-market fit, will usually ask for advice and mentoring from him. If he “clicks” personally from founder then he will help as needed.
“If they need capital, then I will help provide through investment. If you don't need capital, then I will only help advice. All my investments are made through Number.”
Not many startups get investment from Number, only four startups. They are Payfazz, Shipper, Pahamify, and Verihubs. Although the quantity is small, they prioritize quality. Capital is not only a matter of nominal money, but also about other things. Like, assist execution, aservice, sales, partnership, next raise, coaching, etc.
"Money is only one. [Because we help a lot] that's why we can't invest too much in Number. It won't even help later."
He continued, “If only looking for capital, maybe we are not the best. But if you're looking for capital and support founders experienced, then we believe in Number and MAGIC is the best. "