Mar 4, 2021 · 42m · we-live-to-build
The Truth About Funding 2,400 Companies in 70 Countries
0:00 / 0:00
▶ Watch on YouTube →
gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of We Live to Build, E-Ling Lim of 500 Startups and SmarterMe breaks down accelerator evaluation frameworks, cross-regional venture dynamics in Southeast Asia, common founder validation mistakes, and the imperative of cultivating youth entrepreneurship.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Sean holds 24.6% of the talking time here. How this is scored →
Sean as informed peer 3.6 Guest teaching 2.1 Guest disagreement 0.1 Sean pushing back 0.7
speaking balance: gold is Sean, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 26:25 E-Ling criticizes founders who refuse to talk to users
E-Ling emphatically rejects founder denial, sharply recounting how she confronts entrepreneurs who invent user assumptions rather than collecting empirical customer feedback.
Hardest push from Sean ▶ 28:15 Sean challenges rejection priming in youth mentorshipSean directly challenges E-Ling's teaching methodology, arguing that telling students to expect 9 rejections out of 10 primes them with negative confirmation bias.
Biggest teaching moment ▶ 6:17 E-Ling details region- and stage-specific accelerator designE-Ling comprehensively explains how accelerator objectives differ from foundational mindset shifts in nascent ecosystems like Cambodia to distribution and mental health support at Series A.
Sean holds their own ▶ 28:20 Sean leverages psychology background to offer pedagogical fixSean cites his background in psychology to demonstrate how confirmation bias skews experimental outcomes, successfully convincing E-Ling to trial an altered framing in her upcoming cohort.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Sean as informed peer | Guest teaching | Guest disagreement | Sean pushing back | Why |
|---|---|---|---|---|---|---|
| E-Ling Lim's Role and Cross-Regional Perspectives | 3 | 2 | 0 | 0 | Sean asks E-Ling to introduce her dual background as an operator and APAC head at 500 Startups. E-Ling contrasts the global expansion mindset of US startups with the localized focus of Southeast Asian founders. | |
| Tailoring Accelerator Support Across Startup Stages | 2 | 3 | 0 | 0 | E-Ling breaks down how accelerator curriculum must be tailored by market maturity (mindset coaching in Cambodia) versus company stage (A/B testing at seed, scaling and mental health at Series A/B). Sean listens passively. | |
| Evaluation Criteria and the Six T's Framework | 3 | 3 | 0 | 0 | Sean brings up his own past rejection from a 500 Startups program. E-Ling articulates the 'Six T's' evaluation framework (Trend, Traction, TAM, Technology, Team, Terms) and explains the distinction between portfolio funding and open ecosystem education. | |
| Application Pathways and Program Financing Models | 3 | 2 | 0 | 0 | Sean inquires about financial models for accelerator participants. E-Ling clarifies how global programs deduct fees from investment capital, whereas municipal or government programs like Kobe use co-payments to filter out program-hopping founders. | |
| Founder Motivation and Localized Innovation in Asia | 2 | 2 | 0 | 0 | E-Ling rejects the notion that Southeast Asian startups are merely 'Me-Too' copies of Silicon Valley companies, arguing they address fragmented, market-specific infrastructure challenges across distinct nations. | |
| Operational Challenges and Iterative Founder Feedback | 5 | 2 | 1 | 2 | Sean asserts that founders should easily provide feedback and suggests cultural hesitation in Southeast Asia impedes candor, offering module-based check-ins as a solution. E-Ling notes they already run modular feedback and shares how timezone clashes affect international cohorts. | |
| Promising Innovation Sectors: Agri-Tech, Mental Health, and EdTech | 5 | 2 | 0 | 0 | After E-Ling details promising areas in aquaculture agri-tech, mental health, and affective education, Sean launches into an extended critique of the US industrial-era schooling system and the lack of youth financial literacy. | |
| Common Startup Pitfalls and Untested Value Propositions | 6 | 1 | 0 | 4 | E-Ling explains her startup teaches kids street validation by warning them that 9 out of 10 strangers will reject them. Sean pushes back using his psychology background, arguing this primes students with confirmation bias and suggests framing odds positively. | |
| Shifting Investment Dynamics and ESG Integration | 3 | 2 | 0 | 2 | E-Ling discusses post-pandemic deal-making and 500 Startups' ESG framework. Sean asks for the acronym definition and pushes back on 500 keeping their ESG benchmark report internal rather than publishing it for ecosystem benefit. | |
| Long-Term Outlook for Asian Tech Unicorns and Ecosystems | 5 | 2 | 0 | 0 | E-Ling outlines the 10-year horizon for B2B SaaS unicorns and intrapreneurship across APAC. Sean adds color by contrasting the Chinese government's direct equity recycling model with the US private-capital approach. | |
| Empowering Future Generations Through Youth Entrepreneurship | 3 | 2 | 0 | 0 | E-Ling highlights SmarterMe's mission to foster entrepreneurship in 12-to-16-year-olds before university. Sean probes whether there is an equity-sharing mechanism before jokingly offering to invest in teen founders. |
Statements from this episode (21)
Lim: 500 Startups has invested in over 2,400 companies across 70+ countries
“So we are the world's most active early-stage investor. We have invested in over 2400 companies in over 70 countries.”
Lim: US startups aim globally while Southeast Asian founders focus locally
“So they never aim to just be a startup that dominates the US. They aim to dominate the whole world. But whereas In Asia Pacific, or rather in Southeast Asia, a lot of startups think about conquering their country first, and maybe after they conquer their count…”
Lim: Cambodian founders in 500 Startups programs work full-time jobs
“Today, when we work with a lot of people in Cambodia who are interested in pursuing that pathway, they are all doing side hustles, meaning they all have their full-time nine to five job, and only during the weekend they come and attend our programs.”
Lim: Singaporean startups must expand overseas due to small domestic market
“In Singapore, for example, the market's really small. So for a lot of Singaporean startups, they are, they do have an ambition and, you know, even from a VC perspective, there is a need for them to expand overseas.”
Lim: 500 Startups Evaluates Every Startup Using 'Six Ts' Framework
“We still rely on a common formula called the six T's. So when we talk about the six T's, we look at trend, traction, total addressable market, technology, team. And then lastly, for investments, we look at the terms as well. But this five Key T's right outside…”
Lim: 500 Startups Deducts Accelerator Fees From Startup Investments
“For the C accelerator program, that's one where they do get investment after the program itself. There is a fee, but that fee comes out of the investment amount. So you can pay it after you get the investment.”
Lim: Accelerator Fees Filter Out Chronic Program Hoppers in Asia
“It's also a way for us to actually distinguish between startups who are really interested and committed to the program, Rather than really just joining programs after programs, and quite honestly, there's a lot of startups who do that in this part of the world…”
Lim: Asian Founders Solve Market-Specific Problems Rather Than Copying US Models
“The problems that you see in Indonesia, the problems that you see in Singapore, the problems that you see in Philippines or in Korea, they are all different. The market is different. The users is different. The habits, behaviors, everything is different. So fo…”
Weisbrot: Southeast Asian culture makes people hesitant to voice feedback
“Especially in Southeast Asia, my experience has been specifically that people are, it's hard for them to say out loud what they're feeling because of the culture.”
Weisbrot: Future of Education Will Probably Not Lie With Governments
“So I believe the future of education will probably not lie in the hands of governments in order to ensure that future generations are actually capable of being ready for the world.”
Lim: First-time founders need product-market fit before applying for accelerator funding
“Unfortunately, with all that's going on today, you do need to have that, you know, product market fit validation before you actually come and apply for either a program or funding. Unless, of course, you are someone who's done multiple exits, then that's a dif…”
Lim: Founders avoid user feedback out of fear of rejection
“And it still surprises me to this day that there are a lot of founders who built without Ever speaking to their end user. And I think that has to do with fear. We are inherently really afraid of speaking to people and getting feedback. So we dupe ourselves int…”
Weisbrot: Teenage social restrictions in Asia hinder adult communication skills
“I think the problem in that regard with a lot of people, maybe especially in Asia, again, is like they are not allowed to socialize. They are not allowed to date. In their teenage years, like Americans are. There's just a tremendous amount of social engagement…”
Lim: PE and VC funds are growing comfortable doing deals without site visits
“More and more, I do see a lot of PE funds, a lot of VCs. I have friends in the PE industry, and they've also said, shared the same thing, which is that people are getting more comfortable doing deals without necessarily Making, you know, site visits and everyt…”
Lim: 500 Startups prioritizes future of work, agri-food, and education in 2021
“But I would say that this year itself, what are some of the areas that we are particularly interested in? Future of work and jobs, right? Productivity, those are definitely areas of interest. Anything that has to do with food, agri, it's also something of inte…”
Lim: There is no standardized global ESG policy framework for investors
“Every firm that has an ESG policy would have their own methods of tracking and really their own requirements because as of right now, there isn't a standardized policy globally.”
Lim: Asia-Pacific will produce a larger share of global unicorns by 2031
“So I think in the next five to 10 years, we are definitely going to see a larger proportion of the unicorns globally coming out of Asia Pacific. I have no doubts about that.”
Lim: Many sleeper-hit unicorns in the 500 Startups portfolio are B2B SaaS
“In fact, a lot of the unicorns that we have are the ones that we call slipper hits actually, so not the obvious winners. But a lot of the slipper-hit unicorns that we have are actually B to B businesses, SaaS businesses, right?”
Lim: Startup ecosystems hit a ceiling without corporate partnerships
“Without corporates being open to whether it's internal innovation or external partnerships with startups, the ecosystem is going to hit a ceiling.”