CEO Voice | The Ledger Asia
Venture capital is often described as a business of capital allocation. But in reality, capital is only part of the equation. The true currency of venture capital is access, access to founders, to ideas, and most importantly, to networks.
New revelations from US Department of Justice files showing how disgraced financier Jeffrey Epstein helped connect and mentor venture capitalist Maria Bucher offer an uncomfortable but illuminating insight into how Silicon Valley truly operates. It is not merely capital that creates venture capitalists, it is proximity to influence.
Epstein was not a conventional venture capitalist. He was neither a prolific startup investor nor a visible technology entrepreneur. Yet his influence came from something far more powerful: his network. He introduced founders to financiers, financiers to investors, and investors to opportunity. In venture capital, this ability to connect people is often more valuable than writing the cheque itself.
Maria Bucher’s rise from publicist to founder of Day One Ventures illustrates a deeper truth about venture capital: the path to becoming an investor often runs through relationships, not credentials.
Venture Capital’s Invisible Infrastructure
Unlike public markets, venture capital operates largely behind closed doors. There is no central exchange. There are no transparent bidding systems. Instead, venture capital functions as a network-driven ecosystem, where access to opportunities is controlled by relationships.
This structure creates what insiders call “information asymmetry.” Those within elite networks gain early access to promising startups, while outsiders often never see these opportunities.
In this environment, connectors, individuals who introduce investors to founders, wield extraordinary influence. They shape who receives funding, which companies grow, and ultimately, which technologies define the future.
Epstein’s role exemplifies this dynamic. His power did not come from owning companies or controlling funds, but from facilitating connections.
Why Networks Matter More Than Capital
At its core, venture capital is about identifying asymmetric opportunities, startups that can generate exponential returns.
However, the most promising startups rarely seek capital publicly. Instead, they raise funds privately from trusted investors within established networks.
This creates a self-reinforcing cycle:
- Investors with strong networks gain access to the best startups
- Successful investments strengthen their reputation
- Stronger reputations expand their networks further
Over time, influence compounds.
This is why many of Silicon Valley’s most successful venture capitalists were not initially investors. They were entrepreneurs, advisors, or connectors who gained proximity to innovation.
The venture capital ecosystem rewards access more than it rewards credentials.
The Globalisation of Venture Capital Networks
This network-driven model is no longer confined to Silicon Valley. It is rapidly expanding across Asia, including Malaysia, Singapore, Indonesia, and Vietnam.
ASEAN’s startup ecosystem has grown significantly over the past decade, attracting global investors seeking exposure to high-growth emerging markets.
Malaysia, in particular, is benefiting from its position in the semiconductor supply chain, digital economy expansion, and government-backed startup initiatives.
However, the same network dynamics are emerging.
Access to funding in ASEAN increasingly depends on connections with global venture capital firms, institutional investors, and technology ecosystems.
Startups with international exposure often secure funding faster than those operating purely domestically.
This creates a structural advantage for founders connected to global networks.
The Rise of Relationship Capital
In modern venture capital, financial capital alone is no longer sufficient.
Investors are expected to provide:
- Strategic guidance
- Market access
- Talent recruitment
- Brand positioning
This shift has elevated the importance of “relationship capital”, the value created by trusted connections.
Investors who can connect startups with customers, partners, and future investors provide value beyond money.
This explains why venture capital firms increasingly hire individuals with diverse backgrounds, including marketing, public relations, and operational expertise.
Their ability to build relationships enhances the firm’s competitive advantage.
Implications for ASEAN and Malaysia
For ASEAN economies, the lessons are clear.
As the region attracts more global venture capital, access to international networks will become increasingly important.
Malaysia’s ambition to position itself as a regional technology hub depends not only on infrastructure and policy but also on integration into global investment networks.
Government initiatives, capital market reforms, and startup accelerators are helping bridge this gap.
Bursa Malaysia’s efforts to expand IPO pipelines and support emerging companies reflect a broader strategy to strengthen Malaysia’s innovation ecosystem.
The country’s growing role in semiconductors, artificial intelligence, and data infrastructure positions it as a key participant in the next phase of global technological transformation.
However, building strong investment networks will be critical to sustaining this momentum.
The Future of Venture Capital: Networks Over Capital
The Epstein revelations highlight an uncomfortable reality, but they also reveal a fundamental truth about venture capital.
Capital is abundant.
Access is scarce.
The investors who shape the future are not necessarily those with the most money, but those with the strongest networks.
As global venture capital continues expanding into Asia, this dynamic will become even more pronounced.
For founders, building relationships will be as important as building products.
For investors, cultivating networks will remain the ultimate competitive advantage.
And for markets like Malaysia, integration into global capital networks will determine their role in the next generation of technological innovation.
In venture capital, money opens doors.
But networks decide which doors exist.
