Neoteny Labs

Investment Thesis

Markets for consumer internet start-ups have truly become international. Recent successes of global platforms such as Facebook, Twitter, Apple iPhone and Google Android took place on the back of proliferation of technology and trends such as the Open Web and its standards, advanced software development methodologies (i.e. Agile), and the availability of cloud infrastructure. As a result, startups, particularly those innovating upon the Internet, have seen their cost of product development significantly lowered and their pace of innovation accelerated. Entrepreneurs are now able to bootstrap with less for longer, iterate its products and services much faster and get further along than before.

Founded by entrepreneur and venture capitalist Joichi Ito, Neoteny Labs intends to harness these trends in the course of incubating and investing in early-stage startups across Asia, and has selected Singapore to set up its first incubator. The incubator is on track to commence operations in Q1 2010.

Neoteny Labs Startup Fund 1

Neoteny Labs Startup Fund 1 is an early-stage pan-Asian venture fund that focuses on incubating and investing in early-stage startups operating across Asia and the Middle East, primarily in market segments such as Consumer Internet, Mobile Applications and Consumer Hardware & Electronics Design. The principals of Neoteny Labs are currently in the process of raising and closing the fund, and expect to commence operations in Q1 2010. The fund will be managed by its General Partner, Joichi Ito, and supported by its Investment Manager, James Chan.

Approach

Neoteny Labs is a hybrid incubator that combines an early-stage venture fund with a hands-on incubator.  Together with its mentors and advisors, the principals of Neoteny Labs will:

1. Identify new markets, product and technology trends and guide teams to develop in those areas;
2. Mentor teams with new product ideas and invest in them as they gain traction;
3. Help with global market entry, partner sourcing and subsequent capital raises

In addition, Neoteny Labs will be facilitating the set up of a Center of Best Practices in Singapore.  The Center will provide world-class professional services in design and software development and provide engineers with on-the-job training, while serving as a resource center for startups that the fund has a stake in.

The Center plays an important role in the incubation process, for instance as:

• The physical ‘incubation space’ within which Neoteny Labs exists;
• A co-working space where people with similar interests can meet, socialize and collaborate; and
• A key source of product and software development expertise for entrepreneurs and start-ups in Singapore and across Asia.