In this episode of the DevReady Podcast, host Andrew Romeo speaks with Nicholas Ooi, an investor at Investible, about his journey from corporate consulting to venture capital. Nicholas shares how his passion for technology and startups led him to make a career shift into the startup ecosystem, specifically during its rapid growth in Australia. Now, as part of Investible, Nicholas focuses on early-stage investments in the ANZ and Southeast Asia regions. Looking ahead to 2025, he is optimistic about improving market sentiment, especially for early-stage investments, and the growing role of AI in streamlining software development for founders.

Nicholas discusses the stages of investment that Investible focuses on, specifically Pre-Seed to Series A. These stages include companies that are either pre-revenue or just beginning to generate some revenue. He emphasises that Investible invests in a wide array of sectors, including AI-enabled software, deep tech, and hardware, with a strong emphasis on building defensible companies. One key insight Nicholas shares is the growing importance of vertical applications in AI startups, which are more effective than horizontal solutions. By targeting specific industries, vertical solutions allow companies to scale efficiently within their niche.

In addition to his thoughts on investment, Nicholas offers insights on the future of AI and its role in software products. He believes that all software companies will need to incorporate AI in the long term to remain competitive. However, he also stresses that successful companies must first focus on solving real customer problems before adopting AI. Nicholas acknowledges the challenges faced by Australian companies competing with US giants due to capital constraints but highlights emerging opportunities in adjacent sectors like semiconductor chip production and machine learning models.

Nicholas gives a look into his daily routine as a venture capital investor. His day typically involves three main tasks: meeting with early-stage startup founders, conducting due diligence on promising investment opportunities, and preparing materials for the investment committee to secure funding. He underscores the importance of ongoing support for portfolio companies post-investment, as helping them grow and succeed is a key part of his role. Nicholas also touches on the balance of screening, analysis, and strategic involvement that makes up the comprehensive nature of his work.

Another important discussion in the episode focuses on the evolving nature of software business models. Nicholas highlights the shift from traditional subscription-based models to usage-based models, such as API call-based pricing. He also shares the significance of "founder-market fit," explaining how successful founders often have a personal connection to the problems they are solving. Nicholas discusses how investors assess founders, looking for unique insights, technical expertise, and soft skills such as resilience and adaptability that are crucial for long-term success.

Lastly, Nicholas shares what sets Investible apart when working with founders seeking investment. He points to their strong presence in Southeast Asia, which offers businesses opportunities to expand into the region, and their angel syndicate model that provides hands-on, strategic value beyond financial backing. Nicholas also discusses the pressures of pursuing venture capital funding and encourages founders to carefully consider whether they truly want to scale their businesses under the expectations and long-term commitments that come with VC funding.

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