Robin Leigh is a seasoned private investor and adept dealmaker with a wealth of knowledge in UK and Asian markets. In our ongoing conversation, Robin discusses his strategies for navigating the shifting landscapes of investment and the unique advantages that an experienced investor can offer startups as a ‘thought partner.’ He also emphasizes the importance of grasping regional nuances for startups aiming to raise funds across various territories.
As market dynamics and economic climates shift, what strategies do you employ to manage risks while pinpointing promising startups?
My approach to angel investing often kicks off with encountering an exceptional idea and then assessing whether I believe the sector and opportunity truly hold the potential that the founder envisions. During this evaluation, I thoroughly consider current market trends and economic contexts, examining how they might affect the investment’s risks. I maintain a close watch on geopolitical and macroeconomic developments to manage a diverse portfolio encompassing both liquid and illiquid investments across many regions. This vigilance helps me stay aware of the risks and balance my portfolio by adjusting holdings accordingly.
With your extensive background as a lawyer, investment banker, and McKinsey consultant, how have these roles enriched your capabilities as an angel investor?
I relish the opportunity to be part of building a new business, tackling the inevitable challenges that arise, contributing my expertise, and diving into areas where I’m less knowledgeable. This involvement often sees me actively participating in constructing financial models, creating analytical insights, negotiating and drafting legal documents, connecting with potential partners, and serving as a ‘thought partner’ in strategy development or option considerations.
Simultaneously, I find it intriguing to delve deeper into the operational intricacies and dynamics of a business, areas where my understanding may initially be limited. This curiosity fuels my ability to offer the comprehensive support I’ve mentioned.
Your investment experience across Asia and the UK has been substantial. What are some noteworthy cultural, regulatory, or market-driven differences you’ve noticed that affect startup growth in these regions?
In this context, I can only touch on a few key differences—and similarities—that I keep in mind. To start, it’s important to recognize that Asia is not a monolith; it’s a diverse collection of markets, each at varying stages of development with distinct legal frameworks and relationship dynamics.
Despite these differences, all markets consist of individuals and enterprises eager to improve their standing, trade in excellent products and services, and benefit from doing so. As such, basic business principles like competitive advantage, supply and demand, and economic potential remain consistent.
However, these differences inform distinct approaches to risk management and operational structuring. These variations can stem from challenges in contract enforcement, the necessity of local political or bureaucratic backing, or uncertainties in logistics or payment processing. Grasping these local complexities is crucial not only for risk assessment but also for seizing an advantage if founders can sustain a competitive edge in these areas.
What advice do you offer founders seeking funds in these varied environments?
For founders starting in smaller markets, like Singapore, developing an expansion strategy is vital—unless the initial market can offer significant scale. Even then, a solid growth strategy can enhance exit valuations. Linguistic and regulatory barriers may present more obstacles for regional expansion in Asia compared to the European Union.
Although I can’t provide precise insights on investor behavior across these regions, I have observed that the angel investment community in Asia is generally smaller and less seasoned than in the UK. This leads to fewer investors, but potentially less stringent demands from those in Asia. Conversely, they might be less inclined to explore opportunities in unfamiliar sectors or those entailing substantial technical development risks.
Additionally, in some Asian markets, there’s a tendency to rely on agreements made with less rigorous scrutiny or documentation. Personally, I prefer establishing clear and precise foundations early on to prevent misunderstandings later. Once solid due diligence and clear documentation are in place, transitioning to a more flexible and responsive engagement is often more beneficial as circumstances evolve.
Are you an angel investor seeking new investment opportunities? Join us at Angel Investment Network, where global investors connect with the promising businesses of the future.
