by Sarah Tan Jia Yi & Hardip Singh Rekhraj
Before startups became a phenomenon, practicality ruled the business landscape. But remarkable stories of Mark Zuckerberg and Peter Thiel ignited a spark in the hearts of dreamers worldwide, inspiring them to imitate their achievements, leading to a wave of startup fever. Unfortunately, not all endeavours were rooted in a genuine desire to solve problems or fill market gaps. This caused many projects to fail, contradicting traditional beliefs about practicality in business.
According to Forbes, the daunting reality reveals that a mere fraction of startups, less than 1%, succeed in securing external investments. As investors themselves, Harvey Foo from the private equity firm Kairous Capital, and Dylan Woon, with a management consulting background from Boston Consulting Group, established Sparta Haus — a visionary endeavour aimed at facilitating the identification and connection of investors with truly valuable startups.
Since its inception in 2019, Sparta Haus has collaborated with startup incubators, law firms, accounting firms, corporate secretarial firms, branding and marketing agencies, and software houses.
The firm takes an industry-agnostic approach, surpassing the narrow focus on technology. Sparta Haus is uplifting high-potential ventures that are commonly sidelined by “mainstream” venture capitalists and incubators. Additionally, Sparta Haus bridges the gap for underserved investors, who lack access to genuine founders, enabling them to experience the joy of investing and positively impact society.
“When two people’s values and ‘ikigai’ align, true opportunities unfold. We strive to untangle the complexities of goals, achievements, interests, networks, and skills with everyone we meet, leveraging frameworks like the G.A.I.N.S framework, and empowering them to work towards their ‘ikigai’,” says Harvey.
As venture builders, Sparta Haus has empowered ventures and investors to reach greater heights, propelling them towards joy and impact.
Success Stories
Amidst the pandemic, Sparta Haus facilitated a bird’s nest company from Pahang in securing a RM30 million investment from China. The investment was transferred remotely, and the Chinese investors only visited the company once borders reopened, showcasing the trust and belief in the company’s potential.
Sparta Haus also played a crucial role in assisting an aesthetic company from Penang, initially with three outlets, that has grown to securing investment from a private equity firm. The company rapidly expanded to over ten outlets across Kuala Lumpur and Johor Bahru within a mere two-year span.
Sparta Haus’ influence extended to the agriculture sector as well, where they played a pivotal role in helping an agriculture company secure substantial investments from Malaysian angel investors.
Sparta Haus is currently empowering CAS International, a regional network of accounting and consulting firms, to elevate their position in the value chain. Recognising the importance of professional services, Sparta Haus also offers comprehensive solutions such as crafting information memorandums, pitch decks, and building financial models.
Dylan Woon, Dang Tai Luk, sweatspa founder Sabrina Tang, and Harvey Foo (left to right). Sparta Haus empowers sweatspa to reach a wider audience and strengthen their business model.
Venture Building: sweatspa and Hall of Fame
Sparta Haus takes immense pride in its two noteworthy ventures. Dubbed sweatspa, a wellness company that specialises in heath-boosting infrared sauna therapy, invites the health-conscious to indulge in rejuvenation and wellness. Hall of Fame, a startup that offers luxury experiences including private jets, helicopters, boats and indoor golfing. The elite can enjoy chartered experiences, using them as opportunities for business discussions and deals, while the masses can organise group experiences or events.
Both ventures hold immense appeal for investors and have gained popularity among high-net-worth individuals, celebrities, KOLs, and corporate leaders — making them highly relevant and sought-after in the market. The firm sees high investor appeal soon, with its sights set on assisting these brands in becoming valuable intellectual property.
Sparta Haus is close to obtaining the franchise licence for sweatspa and is preparing an equity crowdfunding campaign on pitchIN, Malaysia’s top digital fundraising platform approved by the Securities Commission. As for Hall of Fame, Sparta Haus has forged strategic connections with marketing channels and VIP customers from China who will increasingly visit Malaysia.
“There are funding opportunities for Malaysian ventures. The key lies in finding the ideal one by defining investment mandates, knowing what to look for and limiting downsides. Investors share information and cross-check within their circles before making hasty decisions hence entrepreneurs seeking funding must be well-prepared, displaying maturity and open-mindedness when handling critical questions from investors,” says Dylan.
Sparta Haus’ dynamic team, Dylan Woon, top business writer Claire Tang, Harvey Foo, top graphic designer Evia Wong, with esteemed mentor Huan Chee Giap (left to right).
High-powered Co-investments
Sparta Haus diversifies investments through its own fund and facilitates investments from other funds. Each fund has a specific mandate aligned with various investor preferences, providing them a range of options and fostering a personalised investment experience.
Sparta Haus identifies cash cow companies for dividend-seeking investors while attracting long-term investors with companies poised to triple their valuation within three years. With a focus on companies that set their sights on IPO, Sparta Haus caters to sophisticated investors seeking public market debuts, broadening investment opportunities across various company types and investor profiles.
“Instead of solely striving for big gains, we focus on eliminating big losses; through this approach, we will experience occasional big gains, ultimately combining them to fuel growth and instil investor confidence,” shares Dylan.
For aspiring startup founders seeking funding and growth opportunities, head over to www.spartahaus.com.
This article is contributed by Venturous PR, a student-led communications agency from Taylor’s University, School of Media & Communication (SOMAC). As an entrepreneurial sandbox for senior PR undergraduates, Venturous PR strives to make innovative communication solutions accessible to Startups and SMEs. The project is also part of Business Today’s social engagement initiative with PR students to promote ethical journalism.
