Without a doubt, we’re on the eve of a domino sequence of big tech IPOs in the region. Bukalapak was just the beginning, and it was already preceded by Sea Group’s success on the Nasdaq. Both retail and institutional investors alike have a multitude of tech listings to look forward to: Grab’s Spac listing in New York, GoTo’s imminent listing on the IDX and Traveloka’s potential listing.

However, Southeast Asia’s angel investors have traditionally been much more hesitant when it comes to tech investing in the region. This is not exactly surprising. Investing in startups is a risky business, and even more so when you are an angel investor.

Angel investors are high-net-worth individuals and often back startups when they are in their most nascent phases (i.e. the pre-seed and seed stages). On top of financial backing, angel investors, with their experience in the industry and vast networks, usually provide some form of mentorship and look at investment horizons of five years or more. But, when it comes to the red-hot tech industry, startups come and go like the wind. Angels simply cannot afford to pour money into every tech venture they encounter.

Naturally, ASEAN’s angels tend to err on the side of caution. When it comes to dealmaking, a company’s plan for rapid growth and expansion takes a backseat to a solid roadmap to profitability and long-term sustainability.

Such a philosophy runs contrary to the tech investing maxim in the region today. Despite massive user bases and ballooning valuations, even the region’s largest tech firms have yet to turn a profit. Grab, despite its upcoming $40 billion Spac deal, is still burning through cash to stay afloat. Similarly, industry titans like GoTo and Sea Group remain unprofitable.

But the industry landscape is changing. Recent developments have proven that liquidity is now a very real prospect for angels. All this time, the question of liquidity has been rather blurry, especially for high net-worth individuals who are deciding whether to start early-stage angel investing in the tech space.

Yes, we have Sea Group’s IPO and stories of secondary sales, but Bukalapak’s IPO, GoTo’s imminent IPO, and Traveloka’s deal have all created much buzz and hype in the region’s retail investment ecosystem.

Aside from these giants, other rising tech startups are also making headlines. Indonesian buy-now-pay-later service Akulaku, which has raised more than $218 million over four funding rounds, is preparing for a pre-IPO round in a bid to go public in 2022.

Further, exit environment conditions in Indonesia, and the rest of Southeast Asia, are becoming far more favorable for tech startups, making it easier for them to raise large amounts of capital and work toward profitability.

For example, both Indonesia and Singapore are in talks to allow Spac listings — no doubt a consequence of the Spac boom in the United States — in hopes that fast-growing companies will go public within the region, instead of directly listing abroad.

Regulatory overhauls, like Spac listings or the introduction of dual-class shares, allow tech startups to go public much earlier in their lifespan and raise large amounts of capital, even if they are still making losses. This means that angel investors are far more likely to exit an investment with positive returns.

All these recent developments on both the investor and government levels should make angels, and aspiring angels, optimistic about backing early to mid-stage tech companies.

The benchmarks are here now. With all these IPOs, angel investors, who also understand capital markets, will have a much clearer paradigm of how the market values such companies in Asia.

For example, revenue multipliers measure a company’s value using its net sales or gross revenue. If a company maintains a strong revenue multiplier, then it is likely to continue growing and eventually turn a profit, even if it continues to make losses in its first few years after going public like Amazon.

Another useful benchmark is gross merchandise value (GMV) multipliers, which refers to the value of merchandise sold through a tech platform. This is especially useful to value tech companies as it directly tells you a company’s reach. Sea Group, for instance, logged a GMV of $11.9 billion in 2020, charting a year-on-year increase of 112.5 percent.

For a more accurate measurement of a company’s profitability, earnings before interest, taxes, depreciation, and amortization (EBITDA) come in especially handy, as it does not take into account non-operating factors like taxes or intangible assets.

The golden age of tech in Southeast Asia is about to kick in, and high net-worth individuals would be wise to get into this game as soon as humanly possible.

First, it’s important to understand, you cannot be half an investor anymore. You have to do your research and hedge your bets. But, as an angel, you have to fully commit to your lot. The best time to back ASEAN’s tech companies was yesterday. The second-best time is right now.

Next, talk to your network to understand how to get your money into local pre-IPO tech companies before they go public. This could be in the form of mirroring an experienced angel or letting them manage a chunk of your capital. By investing in a company before it lists and starts recording sky-high share prices, you have a much better chance of generating high returns.

Lastly, family offices and aspiring angels should seek out local clubs, organizations, and individual partners to help them embark on an early-stage tech investing ‘crash course.’ While family offices and angels in the region have a track record of steering away from tech, the boom of the industry has pushed most to pivot and adapt. The best way to do this is with sufficient and relevant information. Those who do not make a move today will miss the boat.

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The writer is CEO of Prasetia Dwidharma, an investment company..