Podcast Summary: Chief Change Officer Episode #222: Inheritance? No Thanks. Chris Quek’s Boldest Bet Yet – Part 2

Host: Vince Chan
Guest: Christopher Kwak
Release Date: March 8, 2025

Introduction

In episode #222 of Chief Change Officer, host Vince Chan engages in a profound conversation with Christopher Kwak, a third-generation member of a prominent family business in Singapore. Defying his father's expectations, Christopher ventured into entrepreneurship in Malaysia before returning to Singapore to establish a venture capital firm by selling his inheritance. This episode delves into Christopher's transformative journey, his efforts to cultivate an entrepreneurial ecosystem in Southeast Asia, and his aspirations for the future generations.

Christopher Kwak’s Background and Entrepreneurial Journey

Timestamp [01:19]:
Vince Chen: "In this episode, we'll dive into Chris's work as a VC investor building up the entrepreneurial ecosystem in Singapore and Southeast Asia."

Christopher Kwak: "I left the family business and my home country to pursue entrepreneurship in Malaysia, becoming an e-commerce entrepreneur. Upon returning to Singapore, I sold my inheritance to fund my venture capital firm, striving to be my own man."

Christopher's decision to break away from his family's legacy marked the beginning of his quest for personal and professional independence. His journey illustrates the challenges and rewards of stepping outside traditional expectations to forge a unique path.

Building the Entrepreneurial Ecosystem in Southeast Asia

Timestamp [04:03]:
Christopher Kwak: "Singapore evolved out of necessity, building a nation with a workforce of engineers, scientists, and specialists. However, we started losing a generation of entrepreneurs..."

Christopher observed a critical gap in Singapore's growth—the decline of entrepreneurial spirit among the next generation. Recognizing that entrepreneurship is a key driver of economic activity, he felt compelled to nurture a new wave of entrepreneurs in Southeast Asia.

Timestamp [06:10]:
Christopher Kwak: "92% of all businesses in Southeast Asia are family-run. Understanding the DNA of these entrepreneurs is essential to integrate them into a regional vision."

By focusing on family-run businesses, which dominate the Southeast Asian market, Christopher aimed to mentor and guide next-gen entrepreneurs, incorporating modern technologies and sustainable values like ESG (Environmental, Social, Governance).

Challenges for Next-Gen Family Business Owners

Timestamp [08:26]:
Vince Chen: "I read in your presentation that 92% of businesses in Southeast Asia are family-run. Could you explain the specific challenges they face?"

Christopher Kwak: "Next-gen business owners struggle with balancing family relationships and business operations. They often want to transform the business but face resistance from their parents who are accustomed to traditional methods."

Christopher highlighted the generational conflict inherent in family businesses, where younger members seek innovation while older generations cling to established practices. Thrive Capital addresses these challenges by bridging the gap between family businesses and technology startups, providing both technical solutions and mentorship.

Thrive Capital’s Unique Venture Capital Model

Timestamp [12:22]:
Vince Chen: "Your business model strikes me as quite smart... You've built a strong network with next-generation family business owners, allowing you to raise funds effectively."

Christopher Kwak: "Our goal is to create an ecosystem where Thrive invests in startups that provide solutions for family businesses. This synergy ensures continuous growth and mutual benefits for all parties involved."

Thrive Capital distinguishes itself by not only investing in high-growth startups but also ensuring that these investments directly support the technological and operational needs of family-run businesses in Southeast Asia. This creates a sustainable cycle of innovation and growth.

Impact and Anecdotes from Investments

Timestamp [14:47]:
Christopher Kwak: "We invested in Tada, the third-largest ride-hailing service in Southeast Asia, because they prioritize driver earnings by not charging commissions. This ensures drivers earn 1.4 times more than with competitors."

Another notable investment is Agrimax, a company that increases crop yields by 20-60%. By integrating Agrimax's technology, a family business was able to produce more food at lower costs, making it affordable for poorer provinces and enhancing food security.

Timestamp [19:30]:
Christopher Kwak: "These investments have a ripple effect, improving efficiency and making a positive impact on society while still being profitable."

Christopher emphasized that Thrive's investments go beyond financial returns, fostering social good and community development across Southeast Asia.

Relationship with Family and Father's Perspective

Timestamp [24:13]:
Christopher Kwak: "Leaving the family business caused emotional turmoil. It took years for my father to accept my path. Eventually, he supported me by introducing a family friend who helped fund my venture capital firm."

Christopher's relationship with his father exemplifies the complex dynamics in intergenerational family businesses. Initially met with resistance, Christopher's persistence and success eventually earned his father's respect and support, highlighting the transformative power of personal growth and resilience.

Personal Growth and Resilience

Timestamp [29:22]:
Christopher Kwak: "I'm still evolving and learning more about my identity. Running my own business builds resilience, something I wouldn't have developed while working for my father."

Christopher reflects on how his entrepreneurial journey, filled with challenges and risks, has cultivated resilience and adaptability—traits essential for both personal and professional growth.

Future Expectations for His Children

Timestamp [30:42]:
Vince Chen: "As a father, what are your expectations for your children in terms of their identity, careers, and lives?"

Christopher Kwak: "I aim to pass on my values rather than rigid processes. I believe in making a positive impact and want my children to be solutions, not liabilities. I teach them to understand perspectives and contexts, encouraging them to be active contributors rather than passive consumers."

Christopher emphasizes the importance of instilling enduring values in his children, preparing them to face future challenges with integrity and purpose.

Conclusion

Timestamp [34:01]:
Vince Chen: "Thank you so much for joining us today, Christopher. If you enjoyed this episode, subscribe and follow us for more insights."

In this episode, Christopher Kwak shares his visionary approach to fostering entrepreneurship in Southeast Asia, addressing the unique challenges of next-gen family business owners, and building a venture capital model that synergizes investments with social impact. His journey underscores the significance of resilience, value-driven leadership, and the enduring influence of intergenerational relationships in shaping a prosperous and innovative future.

Notable Quotes:

• Christopher Kwak [04:03]: "92% of all businesses in Southeast Asia are family-run... Entrepreneurship drives economic activity."
• Christopher Kwak [12:22]: "We're creating an ecosystem where Thrive invests in startups that provide solutions for family businesses."
• Christopher Kwak [14:47]: "By not charging commissions, Tada ensures drivers earn 1.4 times more than with competitors."
• Christopher Kwak [24:13]: "If I didn't go out on my own, working on my own, he would have never given me that respect."
• Christopher Kwak [31:26]: "Values shouldn't change. Good values have been brought over through generations and are still evergreen."

This episode offers invaluable insights into the intersection of family legacy and entrepreneurial innovation, providing listeners with a comprehensive understanding of building sustainable business ecosystems in dynamic regions like Southeast Asia.