Singapore-based venture firm Golden Gate Ventures has raised $100 million for its third fund. The early-stage fund will focus on consumer internet trends in Southeast Asia. The investors include Temasek, Hanwha, Naver, EE Capital, Taizo Son’s Mistletoe, Mitsui Fudosan, IDO Investments, CTBC Group, Korea Venture Investment Corporation and Ion Pacific.
SINGAPORE (PRWEB) SEPTEMBER 14, 2018
Golden Gate Ventures, one of the most established VCs in Southeast Asia, is oversubscribed on its 3rd fund, a US$100M early-stage (Series A) VC fund focused on consumer internet trends in Southeast Asia. This comes less than 3 months after the fund’s first close.
The US$100M fund is oversubscribed and closed to new investors. Golden Gate Ventures Fund III is anchored by existing investors which include Temasek, Hanwha, Naver, and EE Capital. New investors include Taizo Son’s Mistletoe, Mitsui Fudosan, IDO Investments, CTBC Group, Korea Venture Investment Corporation (KVIC), and Ion Pacific.
The announcement comes on the heels of three trends coalescing in Southeast Asia. First is the rise of consumer spending and mobile internet adoption. The second is the flood of foreign capital looking to invest in the region. Some recent examples are Sequoia’s latest fund of $695M for India and Southeast Asia, and Chinese tech titans Alibaba and Tencent pouring billions into unicorns such as Lazada, Tokopedia, Go-Jek, and Traveloka. The third is the rise of serial entrepreneurs and skilled tech engineers in the region: as the ecosystem nears 7 years old, ex-founders and ex-CTOs are breaking out of unicorn companies to start new businesses as the second generation of entrepreneurs. Golden Gate Ventures’ proprietary deal tracking database is forecasting at least 400 VC investments across the region in 2018.
Golden Gate Ventures’ investment strategy since day one has been the same: invest in opportunities that tap into the rising consumer internet and mobile trends in Southeast Asia. Investment strategy revolves around putting the entrepreneur first and actively contributing to the ecosystem. The VC firm’s founders leverage their Silicon Valley experience and networks to identify teams that can become regional heros.
“When I compare the tech ecosystem of Southeast Asia (SEA) to other markets, it’s really hit an inflection point—annual investment is now measured in the billions. That puts SEA on a global stage with the US, China, and India. Yet there is a youthfulness that reminds me of Silicon Valley circa 2005, shortly before social media and the iPhone took off.” – Vinnie Lauria, Golden Gate Ventures co-founder
In order to continue scaling into its third fund, Golden Gate Ventures takes a page from the startup playbook and leverages technology to accelerate growth and team learning. The firm uses Slack to keep in close touch with founding teams across the portfolio, while letting founders connect with each other; the platform carries more than 12,000 messages per month.
The VC firm also uses CRM software to tracking more than 1,000 deals/year across over 450 funds, along with proprietary in-house databases for investment tracking, follow-on financing, and relationship management of over 21,000 contacts.
And it’s all paying off. To date, Golden Gate Ventures’ first two funds have had distributions of cash (DPI) of 1.56x and 0.13x, resulting in IRRs of 48% and 29%, respectively. Golden Gate Ventures Fund 1 is a top performing fund globally, beating Cambridge Associates’ Top 5% benchmark of 0.85x DPI for a 2012 vintage.
Founding Partner Jeffrey Paine sits on the board of the Indonesian healthtech startup Alodokter, where the CEO had this to say: “Golden Gate Ventures has strongly supported our growth since our start, not only with financing but with strong strategic advice, operational support, and connection to other entrepreneurs and investors. They have been an essential part of our journey so far.” – Nathanael Faibis, Alodokter CEO
A flagship investment, Carousell, was founded while the team was still at university. “Golden Gate Ventures had begun helping Carousell months before they became an investor. Vinnie was key in helping us improve our product’s retention mechanisms, amongst other product enhancements, and Jeff gave us good advice regarding capital strategy and partnerships” – Siu Rui Quek, Carousell CEO
About Golden Gate Ventures
Golden Gate Ventures is an early-stage VC fund in Southeast Asia (SEA) founded by Silicon Valley natives. Since 2011, Golden Gate Ventures has launched three funds, its latest being a US$100M early-stage fund. The firm focuses on investing at the Series A stage of consumer internet and mobile startups in Southeast Asia. Breakout companies include Carousell (“Mobile Classifieds 3.0”), Alodokter (HealthTech), Carro (Auto Marketplace), Funding Societies (P2P Lending), and Omise (Payment Processing).