Vertex Ventures Southeast Asia and India has successfully raised $541 million for its fifth fund, the VVSEAI Fund V, marking a significant increase from its initial target of $450 million.
The fund has garnered support from existing limited partners (LPs), including sovereign wealth funds, financial institutions, corporates, and family offices across Asia and Europe, along with new LPs like Japan Investment Corporation (JIC), International Finance Corporation (IFC), and DEG (German Development Finance Institution).
This achievement comes amid a trend of increasing undeployed early-stage venture capital funds in the market. The fund also includes:
- A designated $50 million co-investment fund to support startups led by female founders.
- Notable startups like Licious, KukuFM, and Kissht in its India portfolio, among others.
- A track record of over 80 investments, expresses its intention to further invest in sectors such as enterprisetech, fintech, consumer internet, healthtech, sustainability, and mobility.
This initiative aligns with Vertex Ventures’ commitment to fostering more opportunities for women entrepreneurs, reflecting its conviction as over 35 percent of startups in its Fund IV portfolio already have at least one female founder.
Vertex Ventures’ Strategic Focus
“Our earlier funds have had superior cash-on-cash returns and are outperforming benchmarks. This track record led most of our investors from VVSEAI Fund IV to return as investors in VVSEAI Fund V and increase their allocation. In addition, we expanded our total investor base significantly and are happy to welcome all our Limited Partners,” said Ben Mathias, managing partner of Vertex Ventures Southeast Asia and India.
Vertex Ventures Southeast Asia and India, a part of Vertex’s global network of venture capital funds, primarily invests in startups seeking early-round institutional venture capital funding in Southeast Asia and India.
Their primary focus areas include Singapore, India, Indonesia, Thailand, Vietnam, Malaysia, and other regional emerging hubs.
The venture capital firm has a track record of more than 80 investments and plans to further invest in sectors like enterprise technology, fintech, consumer internet, digital health, sustainability, and mobility.
Vertex Ventures has delivered strong cash returns to its LPs from earlier funds, driven by successful exits from investments in companies like Grab, FirstCry, XpressBees, Recko, and others.
Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India, noted that their previous funds have outperformed benchmarks, leading most investors from Fund IV to return as investors in Fund V and increase their allocation.
Impressive Fundraising in the VC Landscape
“This fundraise is a testament to the quality of opportunities in the India and Southeast Asian markets. The macro-opportunity is palpable, but what excites us more is the continuing maturity of the ecosystem and the quality of founders we are working with in building category-defining companies,” said Piyush Kharbanda, general partner of Vertex Ventures Southeast Asia and India.
The fundraising success of Vertex Ventures comes at a time when many venture capital firms, especially early-stage investors, have raised substantial sums of money.
However, many of these funds remain undeployed due to global macroeconomic challenges.
In the Indian market alone, VC firms have announced or closed funds worth approximately $22 billion since the start of 2022, with an additional $4 billion announced or launched in 2023.
Vertex Ventures Southeast Asia and India’s latest fundraise of $541 million, exceeding its initial target, showcases strong investor confidence in the opportunities presented by the Indian and Southeast Asian markets.
The fund’s strategic commitment to supporting women-led startups further underscores its dedication to promoting diversity in entrepreneurship.
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