Eugene Wong of Sirius Venture Capital to grace SBR's Hottest Startups Panel Briefing 2019

In 2014, the founder, managing director became one of two qualified with UK IoD in Singapore.

With food security becoming a growing global concern due to climate change and environmental degradation, Sirius Venture Capital’s investment pipeline comprises high-growth food tech companies that offer sustainable, healthy and affordable alternative food sources.

Sirius Venture builds up the food chain for these food tech companies by creating vertical integration and synergy. Eugene Wong, who started the venture in 2002, said that they are the first Singapore-based venture capital and angel investor to back food tech companies outside of the Lion City. The company now has stakes in five food tech companies in Israel.

Traditional food companies were the first to get backing from Sirius Venture Capital. Wong advised Ajisen China back in 2006 on the benefits of going public and being listed which led to the China-based fast casual restaurant chain operator raising US$250 million in its IPO the following year, with a market capitalisation close to US$1 billion.

Eugene Wong is Vice Chairman of Japan Foods Holding, which owns around 60 Japanese concepts stores in Singapore. He is currently a Board member of Enterprise Singapore, an Advisor to NTU’s Food Science Technology Program and previously a Board member of AVA Singapore. He is an alumnus of NUS Business School, Imperial College and Harvard Business School.

In an interview with Singapore Business Review, Eugene Wong shares the tale of how his private equity experience led to the formation of his venture capital firm as well as the type of niche space that the company is backing in an industry where food delivery reigns supreme.

Can you describe to us your previous work or personal experience? How did it contribute to who you are as an entrepreneur today?

My venture capital work can be traced back to my earlier role as an associate in a local private equity company in 1998. At that time, I had just ended my bond with the Navy, where I was Head Navy Recruitment and Publicity. The onset of the Asian Financial Crisis led to a lackluster economy and a headcount freeze at banks. However, I was determined to set foot in the financial sector, motivated by a deep interest in investing and finance from an early age, when I would read investment news on The Straits Times. After sending out about 200 applications, I finally landed my first job in the private equity firm. In the next few years, I rose up the ranks quickly. However, in the aftermath of the 911 incident, the private equity scene waned and I lost my job when the VC firm decided to leave their presence in Singapore. That life-changing moment shifted my career trajectory.

Even though one door closed, another door opened. I remained passionate about working alongside SMEs and startups. While most private equity firms were transfixed on monetary returns, I was fuelled with a sense of purpose towards helping them grow and scale. My past experiences made me realise that companies needed more than just capital – they also required advisory help – a gap I felt capable of filling. So owing to a combination of push and pull factors, I started my entrepreneurial journey with the inception of Sirius Venture Capital in 2002, and had never looked back since.

What are your key business philosophies?

Engagement, empowerment and evolvement are the three pillars that shape my business philosophy. In my interactions with business stakeholders, I believe in having ongoing dialogues to nurture relationships and align visions. I am also an advocate of empowerment, where I believe in instilling a sense of ownership among business stakeholders at all levels to push a company forward. I would set directions and goals, but yet give others the free rein to navigate and execute. The culture of learning and relearning to stay relevant in an ever-changing business landscape is also very important.

From my experience, the success of SMEs and startups hinges on three key elements – competence, strategy and capital. SMEs and startups need to bring in board members who are also investors whom the founders can build a rapport with and trust to bring the company where it needs to go. These investors should be able to lend credibility to the company, facilitate access to funds and talents, and possess diversity in the mix of skills and experiences. And at later stages of growth, the company’s board composition should shift as C-level executives are introduced to navigate new challenges.

To serve as a competent board member of my investment companies, I decided to become a Chartered Director earlier in my career. In 2014, I became one of two UKIoD Chartered Directors in Singapore. Today, I feel equipped to discharge my board duties, especially in the areas of corporate governance and leadership, and strategic planning.

Tell us something about your startup. What would be the company's significant milestones?

Sirius Venture Capital invests predominantly in traditional food companies like Ajisen China, Paradise Restaurants, OJJ Foods, Singapore Kitchen Equipment Ltd, Neo Group and Japan Food Holdings, as well as food tech companies to create vertical integration and synergy in the food chain.

With food security becoming a growing global concern as climate change and environmental degradation deplete food sources, technology will be the crux to the future of food. Hence, my investment pipeline comprises high-growth food tech companies that offer sustainable, healthy and affordable alternative food sources.

For example, I invest in Hargol FoodTech, an Israel-based company that grows grasshoppers commercially. While many of us already know that insect protein is a good alternative protein source to animal protein, very few know that edible insects such as grasshoppers have high food conversion rates, very low water footprint, zero waste farming and minimal greenhouse gas emissions, compared to traditional livestock farming for protein. In terms of nutritional value, grasshopper as an alternative protein source, for instance, comprises 72% protein content, all the essential amino acids, and zero saturated fat and cholesterol. Compared to plant-based meat as a protein source, grasshopper proteins offer greater nutritional value. Moreover, it requires lesser processing, therein making it more economical to produce.

Examples of other food tech investments include SuperMeat to develop clean meat, and Genie, a company that produces automated devices that cook meals within minutes from pre-sealed pods.

One of the significant milestones of Sirius Venture Capital is the setting up of a $10 million Sirius Angel Fund, the first batch of Singapore Angel funds to receive co-funding from the Singapore Economic Development Board (EDB) in 2006. Another milestone is the successful listing of Ajisen (China) Holdings on the Hong Kong Stock Exchange in 2007, which raised US$250 million at the IPO and a market capitalisation of around US$1 billion. At the time, the Group was the first and largest China-based fast casual restaurant chain operator to list in Asia.

Sirius Venture Capital is the first Singapore-based venture capital and angel investor to invest in overseas food tech companies. Today, the company has stakes in five food tech companies in Israel.

Singapore Business Review’s Hottest Startups Panel Briefing 2019 is happening on 24 October at Four Points by Sheraton Singapore. To learn more about the event, click here. To register, click here. For inquiries, you may contact Kim at [email protected] or at +65 3158 1386 ext 224