Fatfish riding the wave of new internet ventures

Interviews

Transcription of Finance News Network Interview with Fatfish Internet Group Limited (ASX:FFG) CEO and Executive Director, Kin Wai Lau

Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from IT investments and business company, Fatfish Internet Group Limited (ASX:FFG) is its CEO and Executive Director, Kin Wai Lau. Kin Wai, welcome to FNN.

Kin Wai Lau: Thank you.

Lelde Smits: Singapore headquartered FatFish Internet Group listed on the ASX on July 22, through a reverse takeover of Atech Holdings Limited. How was the transaction conceived and executed?

Kin Wai Lau: The Board of Directors of Atech Holdings Limited first approached us about a year ago. They wanted to diversify from the resources business and were looking at technology as an interesting sector for them to participate. We liked the idea and thought that that could be a good opportunity for the Company to raise funds from the public in Australia, and started working from there. I have to say the transaction has been executed very well, smoothly and here we are we are on the Exchange about 12 months later.

Lelde Smits: The Company describes itself as a Southeast Asia and Australia based internet ventures accelerator. Can you explain what you do and how you generate revenue?

Kin Wai Lau: As an internet incubator we identify early stage internet companies, invest in them, help them to view a product and a business, groom them, grow them. And hopefully we have a potentially global window, spin-in and spin-out for IPOs or potentially trade sale. So we are actually essentially looking at capital gain from the investments that we have made.

Lelde Smits: How did you choose the name Fatfish and what does it mean?

Kin Wai Lau: We were looking at a company called Big Fish Games, Inc. that was very successful in games. It was acquired by a global player a number of years ago. So we thought Big Fish is a pretty catchy name and we want to be a big fat fish, and really go for it as well and hence the name Fatfish.

Lelde Smits: Fatfish is among the first internet accelerators to go public in the Asia Pacific. What has been the success rate of this sort of business model elsewhere?

Kin Wai Lau: I think over the last 24 to 26 months, we’ve seen a lot of interest in internet incubators. There are a lot of successful internet companies that have got spin-off incubators. For example, there’s an incubator in America called Y Combinator that has spin-out a lot of very successful companies like Dropbox for Business, Airbnb. So I think the internet industry as a whole, are looking to find the next growth in terms of new areas for internet companies, and incubators play a very vital role in that whole eco system.

Lelde Smits: Can you give us an example of the businesses Fatfish has invested in?

Kin Wai Lau: For example, we have invested in a company called AutoDirect which has basically a website in Indonesia currently, that does comparison of car insurance with eleven insurers. And they are the only website in Indonesia that can sell an insurance policy online at the moment. So it’s a very exciting company, it’s growing very fast as well.

Lelde Smits: Where are most of your investments located at the moment and where are you looking for opportunities?

Kin Wai Lau: Most of our investments are in Southeast Asia at the moment, but increasingly we are seeing a lot of opportunities investing in Australia. So those are two areas that we will be looking very closely at.

Lelde Smits: Kin Wai, what risk minimisation strategies does Fatfish have in place?

Kin Wai Lau: We came from a background of very rich experience in terms of the internet industry. I’ve been working in the industry for the last 12 years; this is the third public company that I am running. I’ve built companies myself and sold them and so I think, we kind of know what are the tell-tale signs of early stage company and what could make them successful. With that experience, we know how to minimise the risk.

Lelde Smits: Looking ahead, the Company has plans to set up dual headquarters in Singapore and Australia. What role do you see Australia playing in your future operations?

Kin Wai Lau: We see a lot of opportunities in Australia in the start-up, internet start-up and eco system, that there are a lot of very talented entrepreneurs. On the other hand there is not enough funding in the eco system. We bring onto the table funding and also expertise to help Australian companies to expand beyond Australia. I think that’s one of the key parts that we can play in Australia.

Lelde Smits: Finally Kin Wai, what are Fatfish’s main priorities for your first year of trade on the ASX?

Kin Wai Lau: We’re looking to invest into more potential internet companies, hopefully a mixture of early stage and also growth stage companies. And hope to get some early successes from the popular investments we have made so far.

Lelde Smits: Kin Wai, thank you for the introduction to Fatfish Internet Group.

Kin Wai Lau: Thank you very much.


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