1. The Great Repricing of 2022
Impact on Early-stage Tech Companies in Asia
Singapore | September 2022
Banking, Advisory & Capital Markets
Technology, Media & Telecom

2. Contents
How the Stars Went out of Alignment
Impact on Public Markets
03
09
What it Means for Early-stage Companies 18
China Regulatory Update 30
Where to Go From Here 37

3. How the Stars Went
out of Alignment

4. Global Pandemic +
Invasion of Ukraine driving
Raising interest rates
Market volatility
Soaring inflation
4
Explosive
Combination of
Extraordinary
Events

5. Butterfly Effect
5
2020 2021 2022
US$4.2tn
US$8.9tn
Today
Dec 8, 2019:
First COVID
patient
Mar 11, 2020:
WHO declares
a global pandemic
Feb 24, 2022:
Russia invades
Ukraine
Sep 2020:
1 million dead
globally from COVID
Dec 10, 2020:
FDA(1) approves Pfizer
vaccine for emergency use
(1) Federal Reserve Economic Data.
Nov 8, 2021:
US re-opens for
internat’l travel
Federal’s Reserve Balance Sheet

6. 5.4%
9.1%
8.5%
Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22
6
Soaring Inflation Driven by Pent-up
Consumer Demand
Annual inflation rate in the US
accelerated to 9.1% in June of 2022,
the highest since
December of 1981
Source: Trading Economics.
Jul Jul
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2021 2022
US Consumer Price Index Inflation (%)

7. 0.3%
3.5%
2021 2022
7
2022 YTD, the market-implied
federal funds rate has increased
by more than 2%
Expectations the Federal Funds
rate could reach as high as
3.8% by 2023
Source: Factset. Market data as of Aug 31, 2022, Financial Times.
Abrupt Rate Hikes
Attempting to Tame Inflation
Jul
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Aug
Aug
Market-implied Federal Funds Rate at year-end 2022

8. 16
26
8
As a rule of thumb, a VIX reading below 20
suggests a stable and low-risk environment.
Source: Factset. Market data as of Aug 31, 2022.
Decreasing Liquidity Causing
Substantial Volatility
Volatility Index (VIX)
VIX near its
YTD High
2021 2022
Jul
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Aug
Aug

9. Impact on
Public Markets

10. more than
$10 trillion
in market value from the S&P 500.
The meltdown of 2022 wiped out

11. $4,234
0
6,000
12,000
18,000
Sep-00 Jun-03 Mar-06 Nov-08 Aug-11 May-14 Feb-17 Nov-19 Aug-22
11
We are in the 3rd Largest
NASDAQ Drop in 20 years
31% drop
since peak
39% drop
since peak
71% drop
since peak
Source: Factset. Market data as of Sep 1, 2022.
NASDAQ Index

12. (6.0%)
(4.0%)
(2.0%)
0.0%
2.0%
4.0%
6.0%
8.0%
08-05-20 08-07-20 08-09-20 08-11-20 08-01-21 08-03-21 08-05-21 08-07-21 08-09-21 08-11-21 08-01-22 08-03-22 08-05-22 08-07-22
12
In June Markets Suffered their Biggest
Weekly Drop Since Start of the Pandemic
Jun
2020 2022
2021
May Jun May
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
May
Jan Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec
Source: Factset. Market data as of week ending Aug 26, 2022.
S&P 500 WoW % Change
Aug
Jul

13. 13
Only when the tide goes out,
do you discover who's been
swimming naked.”
– Warren Buffet

14. 14
$95 bn
$381 bn
$343 bn
$474bn
$199 bn
Source: Factset. Market data as of Sep 1, 2022.
Even the FAANG were Largely Carried
Away by the Tide
Change in Market Cap since November 1, 2021
6%
(23%)
(23%)
(50%)
(66%)
Apple has recovered
22% since June 2022

15. 8.5%
9.1%
6.9%
2.9%
3.8%
4.4%
4.7%
6.4%
7.0%
7.6% 7.8%
US EU SEA VN BRUNEI Malaysia ID PH SG TH CAM
15 Source: Trading Economics and EIU.
SEA
% GDP CAGR (22E-25E)
2.1% 2.3% 4.4% 3.1% 3.4%
4.3% 5.2% 6.8%
2.8% 5.8%
7.1%
Macro Landscape in Asia is
More Constructive
CPI Inflation (Jul 2022)

16. 16
Yet Not All Asian Listed Tech Players
Weathered the Crisis Well
Change in Market Cap Since November 1, 2021 (1) (2)
Source: Factset. Market data as of Sep 1, 2022.
Note: (1) Change in Market Cap Since IPO (Apr 11, 2022) for Goto. (2) Change in Market Cap Since Business Combination (Dec 2, 2021) with SPAC for Grab.
$4.8 bn
$2.9 bn
$22 bn
$110 bn
(17%)
(59%)
(67%)
(83%)

17. Growth + Margins
Driving Valuations(1)
Rule
of 40
0x
2x
4x
6x
8x
0% 20% 40% 60%
FV/NTM
Revenue
(x)
Rev. Growth + EBITDA Margin (%)
0x
2x
4x
6x
8x
(10%) 10% 30% 50%
FV/NTM
Revenue
(x)
EBITDA Margin (%)
Revenue Growth EBITDA Margin Growth + Margin(2)
Source: FactSet. Market data as of 6/21/2022.
Notes: (1) Analysis includes 18 broad Internet companies (eCommerce, marketplace, and Tech platforms). (2) Rule of 40 defined as NTM revenue growth + NTM EBITDA margin.
R2 = 22% R2 = 45%
R2 = 6%
17
0x
2x
4x
6x
8x
(10%) 10% 30% 50%
FV/NTM
Revenue
(x)
Revenue Growth (%)

18. What it Means for
Early-stage Companies

19. 19
The Ripple Effect
Private Market Lags Public by 3-6 Months
Poor public markets
LPs expect more discipline
VCs have harder time raising capital
Slowdown in capital deployment
Less competition
Lower valuations &round sizes
Fewer deals completed

20. I am telling my portfolio companies to
expect no funding for the next 3 years.”
– Head of a Global Growth Stage Fund | May 2022

21. 21
Volumes Marginally Down
1H 2022 Fundraising down 13% overall vs 1H 2021 in US
$61 bn TMT
-12% YoY change
Source: Pitchbook – US, June 2022 data sourced on 7/1/2022. All VC rounds and growth equity. For completed deals
greater than $5mm.
$232
$201
1H 2021 1H 2022
(13)%
Y-o-Y
Total Fundraising
(US$ in billions)

22. 22
Stronger Preference for
Profitable Companies
$51 bn TMT
-12% YoY change
Source: Pitchbook – Global, June 2022 data sourced on 7/1/2022. Completed deals greater than $5mm. All VC Rounds and Growth Equity for
Profitable and Revenue Generating / Not Profitable Companies.
Number of Completed Deals
Profitable
57%
Not Profitable
43%
1H 2021
Profitable
75%
Not Profitable
25%
1H 2022
75% of
Companies
Invested are
Profitable

23. 23
Smaller Deals in Southeast Asia
Less Impacted by the Downturn
$0.6
$1.6
$0.8
$5.3
$1.2
$4.7
$1.0
$7.5
$0.9
$2.9
$0.9
$3.3
$5-49mm deals $50mm+ deals
Source: Pitchbook; Includes fundraises > US$5mm by technology companies
Q1
2021
Q2 Q3 Q4 Q1
2022
Q2 Q1
2021
Q2 Q3 Q4 Q1
2022
Q2
Total Fundraising
(US$ in billions)
(61)%
Q-o-Q
(14)%
Q-o-Q

24. Volume Raised ($bn) Transactions
Avg. Fundraise Size
($mm)
YTD 2022 8,094 ▲ 189 ▲ 43 ▲
2021 22,700 ▲ 324 ▲ 70 ▲
2020 9,650 ▼ 170 ▲ 57 ▼
2019 9,743 ▲ 163 ▲ 60 ▼
2018 8,460 ▲ 132 ▲ 64 ▲
2017 4,788 ▲ 87 ▲ 55 ▲
24
4.79
8.46
9.74
9.65
22.70
8.09
87
132
163
170
324
189
55.0
64.1
59.8
56.8
70.1
42.8
Source: Pitchbook; Includes fundraises > US$5mm by technology companies
SE Asia Volumes Down vs 2021
But On-track to Well Exceed Pre-COVID Levels

25. 25
New Unicorns Created by month
0
10
20
30
40
50
60
70
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
2018 2019 2020 2021 2022*
Source: Pitchbook (Geography: Global; As of May 20, 2022).
Global Dip in New Unicorns
Peaked in
Sept 2021

26. 26
Private Market Valuations Begin to
Follow Public Market
Source: Pitchbook – US, June 2022 data sourced on 7/1/2022. For the left chart: Completed deals greater than $5M. Round D and Later Venture Capital Pre-Money Valuation. For the
right chart: Completed VC-Backed IPO Exits.
Dispersion of Late Stage VC Deals Pre-Money Value by Quarter
(US$ in billions)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Thousands
Range Top decile Median Bottom decile
$850
$1,051
$1,661
$2,242
$3,132 $3,096
$3,192
$2,556
$1,525
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Rolling Four Quarters
(US$ in millions)
Mean since
2019: $1.4B
Mean since
2021: $1.9B
Tightening from peak
similar to 2Q & 3Q ‘21
Valuations Above Historic Levels, but Beginning to Rationalize Average Pre-Money Value of VC-Backed IPO Exits

27. We are now using 25% WACC in our
Discounted Cash Flow analysis.”
– Global Tech PM from Global Long Only Fund | May 2022

28. 28
Valuations Not All Dropping Equally
Flat is the
new up 2-3x.”
Series D & later have come down and closer to
public comps
Rounds started 3 months ago pricing higher
than round kicking-off now
Earlier stage stronger, but trending down
Quick top-up rounds at flat valuations to extend
runway 6-18 months becoming more common

29. 29
Debt as a creative way to bridge
valuation gap
“Term Loan B”, which is effectively straight debt plus warrants
Convertible structures
“Vulture-like” type of debt

30. China Regulatory
Update

31. 31
China Regulatory Changes
1 Unchecked Growth: Anti-Monopoly Laws
2 Strategic Sector Focus: Industrial / Technology Upgrade
3 Addressing Aging: Favorable Family Policies
4 Personal Privacy & Data Security: Cybersecurity Rules
5 Sustainable Society: Green Transition

32. 32
Anti-Monopoly Laws
Key Policy
Changes
Fair & open competition among platform operators
Fines of up to 1-10% of annual revenue1
$2.7 billion fines $510 million fines
Merger prohibited Administrative penalties
Impact
Growth
• Longer regulatory review and/or prohibition of mergers
• Growth of internet sector may be undermined
Prices
• Prohibits charging ‘unfair’ prices and selling below costs
• Requires pricing transparency
Notes: (1) Alibaba’s case was 4% and Meituan’s was 3%.

33. 33
Technology Upgrade
Key
Changes
Impact
● Targets in the “14th Five Year Plan”
● Encourage R&D with tax and financial innovation
● National industry fund & STAR1 board
● Strategic Sectors: IT, Advanced Manufacturing,
Biotech
• Self-sufficient semiconductor industry chain
• Financial system supporting innovative enterprises
• Focus on Digital infrastructure upgrades in telecom & IoT
7%
R&D CAGR
2021-25
10%
GDP in the
digital economy
by 2025
8%
R&D spent on
fundamental
research
Notes: (1) Science and Technology Innovation Board of Shanghai Stock Exchange.

34. 34
Family Policies
Key Policy Changes
Slowdown of Chinese Population Growth
Impact
8.3
0.5
12.9%
7.5%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Increase in Total Population (mm) Birth Rate (%)
Two-Child
Policy
Three-Child
Policy
(1)
● Abolishment of “One-Child Policy”
● The “Double-Reduction” Policy
• More policies reversing population decline
o Longer maternity leave
o Maternity insurance
o Childcare
o Tax incentives etc.
• Silver economy to thrive
Source: National Bureau of Statistics, Press News, Broker Reports.
Notes: (1) Birth Rate = Total Number of Live-born Births / Average Total Population.

35. 35
Cybersecurity Rules
Key Policy
Changes
Data protection becoming top priority for policy makers
Focuses on national security and user privacy
$1.2 billion fines
Delisted from NYSE
Impact
• Stricter overseas listing rules
• Consumer-facing platforms mostly affected
• Higher compliance costs for multinational corporations

36. 36
Green Transition
Key Policy
Changes
Impact
• Favorable policies for environmentally-friendly sectors
• Stricter regulations on ESG initiatives
• Alignment among environment protection standards
• Integration with green finance system
● Peak CO2 emissions by 2030
● Carbon neutrality by 2060
● Targets in the “14th Five Year Plan”
Enhance Green Finance System
Promote New Energy Vehicles
Energy Revolution
Optimize Industrial Structure

37. Where to Go
From Here

38. Economic downturns often become huge
opportunities for the founders who quickly change
their mindset, plan ahead, and make sure their
company survives.”
– Y Combinator Official Twitter Account | May 2022

39. 39
Fewer leap of faith
Privileging simpler
business model
50% 14% 25% 5% 25%
10% 3% 8% 33% 20% 20% 25%
% of Total Workforce
Source: Crunchbase, Forbes and Newsweek.
Start-ups Reducing
Burn to Survive
5,000
4,480
950
750 700
495 450
250 250 200 170 170
Better OneTrust Klarna GoPuff Bolt BlockFi
Notable 2022 US Tech layoffs

40. We think now is a time to invest more
in faster growing segment to help
then grow. But we need to see a
viable business somewhere in the
world.”
– EM Tech PM from Boston Hedge Fund | June 2022
Find the Contrarians

41. 41
With the right capital, can
create real leadership
Separate winners from losers
“Shorten path to profitability drastically”
isn’t right for every Company
Time to Stand Out
Adversity can create opportunity
for those ready to lead

42. 42
Resilience and Persistence are the
key differentiating factors
Enterprises that provide transparent
value are the ones that thrive
Lower availability of capital and less
competition drive innovation
Leaders Emerging from the Ashes
Some current tech leaders emerged from the 2008 financial crisis

43. Could be Time to
Consider Options
Bigger isn’t always better, but it can be.
Difficult markets can be a time to consider
that strategic combination you’ve always
been thinking about.
43

44. 44
Global M&A Volume vs. Indicators
(US$ in billions)
Source: Pitchbook | Geography: Global
*As of Aug 31, 2022
M&A and Market Volatility
As markets stabilize after dislocation,
M&A volumes tend to rebound fast.
$0B
$100B
$200B
$300B
$400B
$500B
$600B
$700B
Jan
'07
Jan
'08
Jan
'09
Jan
'10
Jan
'11
Jan
'12
Jan
'13
Jan
'14
Jan
'15
Jan
'16
Jan
'17
Jan
'18
Jan
'19
Jan
'20
Jan
'21
Jan
'22
Global M&A Volume (US$B) U.S. Consumer Confidence S&P 500 Inverse of VIX

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