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500 International, the enterprise agency and seed accelerator, has closed $143 million in financing for what it claims is its largest Southeast Asia early-stage fund thus far.
The brand new tranche, 500 Southeast Asia III, or “500 SEA III” for brief, counts a sovereign wealth fund, private and non-private pension funds, a college endowment and 500 International portfolio firms valued at over $1 billion amongst its cohort of restricted companions. Initially focused for $75 million, 500 SEA III is 500 International’s third Southeast Asia-focused early-stage fund.
500 International says that 500 SEA III will primarily put money into companies and “AI-enabled applied sciences” that advance rural digitalization, sustainable cities, human and machine productiveness, healthcare, meals safety and monetary inclusivity. 500 SEA III goals to again 100 pre-seed, seed and Sequence A startups in complete, offering first checks between $250,000 and $500,000 throughout Malaysia, the Philippines, Vietnam, Thailand, Singapore and Indonesia.
Southeast Asia is a sizzling area for startups. It’s anticipated to be one of many main sources of progress for the worldwide financial system over the subsequent few years, pushed by elevated urbanization, commerce, diversifying provide chains, actual property and pushes for sustainability.
VCs made 393 investments in Southeast Asia startups within the first half of 2021, in accordance to Cento Ventures. And startup funding within the area might exceed $14 billion by 2023, per a Golden Gate Ventures report.
To wit, Go-Ventures, now Argor Capital, closed a $240 million just some months in the past to put money into early-stage and mid-stage tech firms in Southeast Asia. Different buyers lively within the area embody Sq. Peg Capital, which has a $550 million fund for Southeast Asia, Australia and Israel; Sequoia India and Southeast Asia, which just lately raised $2.85 billion in funds; AC Ventures, which has a $250 million Southeast Asia-focused tranche; and Lightspeed, which final July raised $500 million for a brand new India and Southeast Asia fund.
That’s to not counsel that there aren’t potential headwinds that would, in some unspecified time in the future sooner or later, bitter buyers on Southeast Asia startups.
In a current evaluation, Bain & Firm famous that governments throughout Southeast Asia, whereas launching initiatives to help the expansion of tech firms, are additionally tightening rules and growing taxes on them. Indonesia handed a regulation requiring tech corporations with on-line companies to pay value-added tax on native gross sales, for instance — even when the purchases are initiated offshore. Singapore, in the meantime, has launched digital banking licenses, as has the Philippines and Malaysia.
Over the previous decade, 500 International has backed greater than 340 firms throughout Southeast Asia, the VC agency claims, together with the ride-hailing app Seize, automotive e-commerce platform Carsome and Indonesian aquaculture startup eFishery3.
“We proceed to imagine within the sturdy potential and alternatives in Southeast Asia,” Christine Tsai, 500 International’s CEO and founding companion, mentioned in a press launch. “With a world portfolio of over 2,800 firms throughout greater than 80 nations, we imagine that the founders in Southeast Asia will profit from one of many few actually international enterprise platforms with deep native roots and in-market experience.”
Based in 2010 and primarily based in San Francisco, 500 International has $2.4 billion in property below administration and has backed greater than 2,800 firms working in over 80 nations. It at present has a group of round 190 entrepreneurs, buyers and operators positioned in over 25 nations.
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