The News SingaporeThe News Singapore

    Subscribe to Updates

    Get the latest news and updates about Singapore directly to your inbox.

    What's Hot

    WRU bans ‘Delilah’ over ‘problematic’ lyrics

    February 2, 2023

    North Korea says US drills have pushed situation to ‘extreme red-line’: KCNA

    February 2, 2023

    Goodbye air con weather, hello warm sunshine: S’pore weather first 2 weeks of Feb. 2023

    February 2, 2023
    Facebook Twitter Instagram
    Trending
    • Stocks in Asia surge, dollar eases on Powell’s “disinflationary” comment
    • S’pore man sues woman for over S$3 million after she friend-zoned him
    • Pandemic to paradise: Chinese tourists return to Bali after three years
    • Adverse effects rare after bivalent COVID-19 vaccine jabs: HSA report
    • S’pore influencer Daryl Aiden Yow wins S$11,280 prize pool from in-between card game during CNY
    • WRU bans ‘Delilah’ over ‘problematic’ lyrics
    • North Korea says US drills have pushed situation to ‘extreme red-line’: KCNA
    • Goodbye air con weather, hello warm sunshine: S’pore weather first 2 weeks of Feb. 2023
    Facebook Twitter Instagram YouTube
    The News SingaporeThe News Singapore
    Demo
    • Home
    • News
    • Singapore

      Adverse effects rare after bivalent COVID-19 vaccine jabs: HSA report

      February 2, 2023

      More than 6.7kg of heroin among drugs worth S$480,000 seized in Jurong, 4 people arrested: CNB

      February 2, 2023

      Married woman helped her lover install camcorder in her toilet to record her daughter showering

      February 2, 2023

      Some hawker stall patrons to get up to S$3 off their meals on Fridays through DBS PayLah! app

      February 2, 2023

      New SCDF firefighting suit reduces heat stress, improves flame protection

      February 2, 2023
    • Asia
    • World
    • Business
    • Lifestyle
    • Sports
    The News SingaporeThe News Singapore
    Home ยป Funds flock to Southeast Asian startups as China loses sheen

    Funds flock to Southeast Asian startups as China loses sheen

    September 23, 20223 Mins Read Business
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
    Share
    Facebook Twitter LinkedIn Pinterest Email

    SINGAPORE: Southeast Asian startups are enjoying a boom in fundraising exercises by venture and buyout funds that are chasing bigger returns and turning away from regulatory turmoil in Chinese markets, even at the risk of slower growth.

    Firms such as Insignia Ventures Partners and SoftBank-backed East Ventures are among those that have raised a combined total of billions for startups over the past year as the region’s 650 million people take to digital platforms.

    “Some of the world’s largest institutions are coming up with strategies now to invest and deploy capital into regions like Southeast Asia, which six to seven years ago may not have even had the ability to absorb cheques of a large enough size”, said Vishal Harnal, a managing partner at venture fund 500 Global, with US$2.8 billion in assets.

    Harnal was one of the scores of investors gathered in Singapore this week at SuperReturn Asia, a private equity and venture capital conference, for whom Southeast Asia tops the investment rankings.

    “Today, there’s much stronger appetite for India and Southeast Asia”, Joel Thickins, co-managing partner at TPG Capital Asia, told Reuters.

    Led by Indonesia, Southeast Asia’s internet economy is forecast to double to US$363 billion by 2025 from an end-2021 estimate of US$174 billion in gross merchandise volume, a report has cited Google, Temasek and Bain & Company as saying.

    Ridehailing and food delivery firm Grab Holdings listed on Nasdaq in December after a US$40-billion merger, while Indonesian rival GoTo, raised US$1.1 billion in a domestic listing this year.

    This month, digital financial services group Fazz raised US$100 million and Indonesia’s Xendit, which bills itself as Southeast Asia’s alternative to payments processor Stripe, announced fund-raising of US$300 million in May.

    The enthusiasm persists despite due diligence for startups that requires many months while valuations are under pressure, investors said.

    “For want of a better word, FOMO is also present”, added Harnal, referring to the “fear of missing out” he saw motivating many institutional investors who lost out on “phenomenal” returns as they were late in backing entrepreneurs in China.

    DIVERSIFYING FROM CHINA

    Southeast Asia is benefiting from Beijing’s tough lockdowns and other measures to rein in COVID-19 in China and Hong Kong.

    But although funds were diversifying, investors said the region’s vastly different markets meant a uniform investing strategy was not ideal.

    “It’s not that they don’t believe in China, just that they are reducing that exposure”, said Tang Kok-Yew, the founding chairman of Affinity Equity Partners.

    “Where can they go? One area that I constantly notice that everybody is very interested in is Southeast Asia. Unfortunately that’s the market that is the hardest to penetrate.”

    Registered to attend the SuperReturn event were 500 so-called limited partners, who offer capital for investors, such as the Houston Firefighters’ Relief and Retirement Fund, as well as about 700 venture and buyout firms, such as Schroders Capital, along with Chinese family offices.

    Despite all the interest, the region might still have some way to go in the quest for funding.

    “There are still individual US cities where startups are raising more money than all of the startups in Southeast Asia”, said Julie Ruvolo, managing director of venture capital at Global Private Capital Association, which says its 300 members manage assets of more than US$2 trillion.

    China Southeast Asia start-up
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Pandemic to paradise: Chinese tourists return to Bali after three years

    February 2, 2023

    Stocks rise, dollar falls after Fed hikes as expected

    February 2, 2023

    Asian shares jump, dollar eases after Fed Chair Jerome Powell’s comments

    February 2, 2023

    Money Mind – S2E36: 5 things you need to know about investing in gold this year

    February 2, 2023

    Meta shares soar as company cuts spending, forecasts upbeat first-quarter sales

    February 1, 2023

    Commentary: Will China keep rising with a greying and shrinking population?

    February 1, 2023

    Leave A Reply Cancel Reply

    Demo
    Our Picks

    S’pore man sues woman for over S$3 million after she friend-zoned him

    February 2, 2023

    Pandemic to paradise: Chinese tourists return to Bali after three years

    February 2, 2023

    Adverse effects rare after bivalent COVID-19 vaccine jabs: HSA report

    February 2, 2023

    S’pore influencer Daryl Aiden Yow wins S$11,280 prize pool from in-between card game during CNY

    February 2, 2023

    Subscribe to Updates

    Get the latest news and updates about Singapore directly to your inbox.

    Don't Miss
    News

    WRU bans ‘Delilah’ over ‘problematic’ lyrics

    By adminFebruary 2, 20230

    The Welsh Rugby Union (WRU) has removed ‘Delilah’ from its Principality Stadium choirs’ song list…

    North Korea says US drills have pushed situation to ‘extreme red-line’: KCNA

    February 2, 2023

    Goodbye air con weather, hello warm sunshine: S’pore weather first 2 weeks of Feb. 2023

    February 2, 2023

    Honda to start producing new hydrogen fuel cell system co-developed with GM

    February 2, 2023
    About Us
    About Us

    The News Singapore is one of the best news portals dedicated to the world & Singapore political and economic news, follow us now for more real news without any agenda.

    We're accepting new partnerships right now.

    Email Us: [email protected]

    Our Picks

    Stocks in Asia surge, dollar eases on Powell’s “disinflationary” comment

    February 2, 2023

    S’pore man sues woman for over S$3 million after she friend-zoned him

    February 2, 2023

    Pandemic to paradise: Chinese tourists return to Bali after three years

    February 2, 2023

    Subscribe to Updates

    Get the latest news and updates about Singapore directly to your inbox.

    Facebook Twitter Instagram Pinterest
    • About
    • Privacy Policy
    • Terms & Conditions
    • Contact
    © 2023 All Rights Reserved. The News Singapore.

    Type above and press Enter to search. Press Esc to cancel.