Meet CK Tan, a venture capitalist with a unique journey. As the Managing Partner of Greenwillow Capital Management, he transitioned from corporate executive to serial entrepreneur and angel investor. Over the past decade, CK Tan has honed his skills in deal sourcing, due diligence, and guiding startups through IPOs and M&As. His expertise goes beyond numbers; it’s about understanding the people behind the business.
In this interview, CK shares what it takes to capture his attention as a founder. He also reveals secrets to successful pivots and how he helps startups grow. This is a rare look into the mind of someone who knows how to spot the next big thing.
Highlights
The Making of a Venture Capitalist, CK Tan’s Unique Story
Q: What do you look for in a founder when considering a seed-stage investment?
A: Let me cite our latest investment, Pituku, an Indonesian hazardous waste management company. The founder, Faiz, pinged me on LinkedIn just as I was about to fly to Jakarta. I agreed to a 20-minute chat, and by the end, I was amazed at how he articulated his business vision with much clarity and confidence. This was a masterclass in communication—Faiz had me hooked in under half an hour! This is only possible with a mix of solid domain knowledge, knowing the business priorities during Zero to One phase, and having the smarts to scale up.
But it’s not just about brains; it’s about heart. Faiz, at just 22, managed to gather and motivate his older team members to work towards a common cause and led Pituku to profitability in under two years. He turned a LinkedIn connection into smart capital for the company. Our first chat showed his leadership, passion, and fighting spirit to seize every opportunity.
We don’t expect founders to check every box; our job is to help them tick as many as possible. While every founder has strengths and weaknesses, we never compromise on issues related to integrity, ethics, and reputation. So, if you fit the bill, we are all ears!
Q: How do you establish trust and build strong relationships with the founders you invest in?
A: Building trust is all about empathy and shared experiences. I often share lessons learned from past challenges to help founders navigate their own obstacles. It is crucial to understand their pain points and what kind of heavy lifting they need from us. We never pay for inflated valuations, but our founders often feel they receive more than they bargained for because of the value adds we bring to the table.
Therefore, we foster a culture of transparency, encouraging founders to share both good and bad news with us. We like to joke that, as VCs, their success determines our future—they’re essentially our bosses, and our retirement plans depend on their success!
Q: Can you share a story of how you helped a founder overcome a significant challenge or obstacle?
A: One example is Willowmore. They initially focused on providing B2B solutions in keyless, smart access control for enterprises and facility owners to safeguard critical infrastructures. However, they were often mistaken for a hardware provider when, in fact, their real strength lies in their software capabilities, including proprietary technology in IoT communication, cybersecurity, and system integration.
What we saw in them was a platform with potential beyond digital locking solutions. Through multiple strategic sessions with the founders, we explored adding other high-value products and services. This approach also aimed to capitalize on the booming smart city innovation sector. Today, Willowmore offers video surveillance, analytics, IoT devices, and sensors. In fact, they have evolved into a key provider of AI-enabled Integrated Facility Management, not just a locking solution provider.
This strategic pivot was instrumental in their success. The company aligned with high-growth verticals like AI and adopted a SaaS model, shifting its revenue stream to a high-margin, recurring business model.
Q: How do you help founders build and scale their teams effectively?
A: Our team brings a unique blend of experience from both corporate and entrepreneurial backgrounds. With members from GIC, Vertex, and EDBI, we have deep corporate practices, business ethics, and strategic management expertise. At the same time, as entrepreneurs and angel investors ourselves, we understand the challenges and nuances of building and scaling businesses. This dual perspective allows us to effectively offer pragmatic, actionable insights to founders.
We help founders focus on the big picture—understanding where they need to go—while also guiding them through the critical details necessary to get there efficiently. We believe that strong foundations are essential for scalable and sustainable growth. Therefore, our team works with founders to build robust systems and processes and establish effective governance and compliance. This is not easy; it will take a few iterations to find the optimal structure and assemble the right team for success.
Q: What role do you play in helping founders establish partnerships or secure customers?
A: As a VC, we are clear in our mind that our value is to assist our portfolios beyond providing capital. We wear many hats, from part-time CFO, CMO, CTO to occasional auditor and fundraiser, playing various roles at varying times to support our startups in overcoming challenges.
We don’t just open doors; we walk through them together with our founders. By accompanying them to meetings with key partners and customers and attending important events, we helped communicate their value propositions more effectively and convincingly. Our portfolios can leverage our networks and ecosystems to reduce the time to market and the resources required to do so.
Due to the level of support we provide, we are often mistaken for part of the management team. We gladly do so, as we are helping them to help themselves.
Q: How do you support founders in their personal and professional development as leaders?
A: My relationship with founders is personal and ongoing. I position myself as a mentor, life coach and knowledge partner. I told them my door is always open, and they can reach out to me anytime. Fortunately, or unfortunately, they took up my offer. I often receive phone calls and messages after office hours and over the weekends.
The support I provide varies, from helping them prepare business plans to advising on personal finance matters, such as seeking liquidity through secondary sales of their shares. However, certain common themes often arise:
- Expanding Their Network: I help founders get their foot in the door by bringing them to meetings and events, extending their professional networks, and opening up new opportunities.
- Building Strong Teams: I emphasize their need to find and train more replicates of themselves. They cannot do everything themselves, and work-life balance is important.
- Being a Listening Ear: I’m always ready to listen, whether it’s about business or personal matters. Providing this kind of support helps founders navigate the complexities of leadership and personal growth.
The Heart and Strategy Behind Investment Philosophy
CK Tan’s approach to venture capital blends heart and strategy. He values strong leadership, robust teams, and unwavering integrity. For CK, every investment is a partnership. Every founder’s success is a shared victory. His insights are a treasure trove of wisdom for entrepreneurs navigating the startup world. Whether you’re just starting or scaling up, CK Tan’s story offers a guide to making smart, impactful decisions.
