Southeast Asia's Venture Capital (VC) landscape is experiencing a surge, with investments projected to reach a staggering $18.3 billion in 2024. However, a critical disparity remains: women hold a mere 17.4% of decision-making roles, leaving a substantial talent pool untapped.

Carmen Yuen, a seasoned General Partner at Singapore’s oldest VC firm, recognises this gap. "With nearly half of Southeast Asia's population being female," she argues, "it wouldn't be prudent for the fund management industry to overlook this vast pool of talent simply on the basis of gender."

Acknowledging recent strides, Carmen notes the entrenched nature of the industry, likening the VC landscape to the closed networks of the 1950s semiconductor boom. "Many VC firms continue to be led primarily by male general partners (GPs), Carmen explains.

However, the tides are turning particularly with initiatives promoting the skillsets women bring to the table – such as multitasking, agility, and a keen understanding of diverse markets – are paving the way for a more inclusive VC ecosystem.

"As VC firms in SE Asia raise more capital, the demand for additional talent will inevitably rise," observes Carmen. "This presents a significant opportunity for qualified women to enter the VC space.” However, regardless of gender, the real challenge in VC, as Carmen says, is securing buy-in from the investment committee for deals.  

Leading by example

Vertex Ventures Southeast Asia and India (VVSEAI) prioritises attracting talented individuals, regardless of gender. “Our gender-neutral hiring approach has allowed us to cultivate a diverse and skilled team," explains Carmen, “with women now comprising 43% of the workforce”.

And the benefits now extend beyond the firm itself as they can leverage its diverse team to connect with a wider swathe of female entrepreneurs. More than 35% of the startups in VVSEAI Fund IV have at least one woman founder.

Diversity is crucial, but it can't be just a checkbox. Real change requires leadership buy-in and a culture that fosters inclusion.

Despite the progress, roadblocks remain. "Organisations need to be clear about their motivations for increasing diversity," she cautions. "Hiring women just to meet a quota is counterproductive, and it can trap them in junior positions without clear paths for growth."

Vertex also encourages portfolio companies to offer flexible work arrangements and foster a culture that respects diversity, argues Carmen.

Leadership commitment and openness are also crucial. "Real change requires leadership buy-in," Carmen emphasises.  

When asked about measuring success, Carmen says, "We track the year-over-year growth in the number of women employed by our portfolio companies and their progression into leadership positions."

Cultivating human ties in VC

While artificial intelligence (AI) is already making waves across industries, Carmen believes it won't replace the human element in VC anytime soon. But she acknowledges, "AI can be a game-changer in terms of deal filtering based on pre-set parameters,".

VC isn't just about cold, hard data. It's about that 'chemistry' you get with a founder, their ability to bounce back from setbacks, and their overall vision, she argues. “It's a people business, through and through."

The VC world is about more than hard data—it's about people. To truly excel, focus on building a talent pipeline instead of merely meeting quotas.

As we conclude our conversation, Carmen shares a powerful message for aspiring women leaders across industries. "Having a supportive spouse or partner can be a game-changer," she advises. "It allows you to focus on your career goals without feeling overwhelmed."

She also emphasises the importance of building a strong network. "Connect with other women in your industry for mentorship.”

Carmen encourages women to “define success on your own terms”. In the VC world, it's often tied to billion-dollar exits, but true success lies in supporting entrepreneurs, creating jobs, and impacting lives through capital contributions."

Looking ahead

With a $541 million fund at her disposal, Carmen and her team have set their sights on six main sectors: B2B (Enterprise SaaS), B2C (Consumer Internet), FinTech, Healthcare, Mobility, and Sustainability. "VVSEAI remains committed to supporting female founders" she added.

Looking ahead, Carmen envisions potential consolidation, similar to the aftermath of the dot-com boom. However, she also anticipates the rise of family offices as direct investors, introducing new dynamics to the ecosystem. Vertex aims to invest in 13 to 15 companies per year while strategically divesting from some companies within their portfolio.