BFM 89.9
The Business Station
Copyright © 2025 BFM Media Sdn. Bhd. 200601017962. All rights reserved
Copyright © 2025 BFM Media Sdn. Bhd. 200601017962. All rights reserved
Recommended
41 mins
10 mins
39 mins
Guest: Justin Lim (Managing Partner), Nexea Ventures
Evaluating a venture capital fund goes beyond reading the pitch deck. For Limited Partners (LPs), true due diligence means scrutinising the financial model, questioning internal valuations, and spotting hidden conflicts of interest.
In Part 2 of our deep dive into VC investing, Justin Lim, Managing Partner at Nexea Ventures, returns to share his view on fund assessment. He explains how to "stress test" a fund's financial model, why consistency is the biggest indicator of a manager's character, and why DPI matters, but also the role of paper gains and IRRs.
We discuss:
How to "stress test" a VC fund's financial model and assumptions.
Why LPs must look beyond paper-based IRR and focus on cash returns (DPI).
The red flags of inconsistency: assessing a fund manager's true character.
Why portfolio valuations are often subjective and how to challenge them.
Identifying conflicts of interest like "front running" and hidden favors.
Justin’s Book Recommendations for Investors:
Thinking in Bets by Annie Duke
The Signal and the Noise by Nate Silver
Competing Against Luck by Clayton Christensen
The Caesar's Palace Coup by Sujeet Indap and Max Frumes
Superforecasting by Philip Tetlock
Presenter: Roshan Kanesan
Producer: Roshan Kanesan
Share:
Recommended
Dec 1
·
10 minsMalaysia’s Perennial Fight Against Corruption
Dec 1
·
39 minsWhat LPs Should Check: Red Flags & Valuations
Recent episodes
0
Latest stories
Podcasts · Dec 1 · 4:00AM
The 25 Question Review: How to Close 2025 & Win in 2026
41 mins
Podcasts · Dec 1 · 41 mins
The 25 Question Review: How to Close 2025 & Win in 2026
Podcasts · Dec 1 · 3:25AM
Malaysia’s Perennial Fight Against Corruption
10 mins
Podcasts · Dec 1 · 10 mins
Malaysia’s Perennial Fight Against Corruption
Podcasts · Dec 1 · 3:00AM
What LPs Should Check: Red Flags & Valuations
39 mins
Podcasts · Dec 1 · 39 mins
What LPs Should Check: Red Flags & Valuations