Three points you will get to know in this article:
- Vertex Ventures raises $541 million for fifth fund, surpassing target.
- Allocates $50 million to support women-led startups.
- Demonstrates strong track record for investor confidence.
Vertex Ventures Southeast Asia and India, a prominent early-stage venture capital (VC) firm, has successfully secured an impressive $541 million for its fifth fund, known as the VVSEAI Fund V. This achievement surpasses their initial target of $450 million for this fund, marking an 80% increase compared to their fourth fund, which raised $305 million back in 2019.
This noteworthy announcement comes approximately two months following the successful initial closing of Vertex Ventures’ latest fund, Vertex Master Fund III, with an impressive sum of around $900 million. This fund is owned by Temasek, adding to the firm’s growing presence and influence in the venture capital landscape.
The VC firm’s current group of investors, which includes sovereign wealth funds, financial institutions, corporations, and family offices spanning Asia and Europe, have enthusiastically endorsed this fund. In addition to these familiar partners, the likes of Japan Investment Corporation (JIC), International Finance Corporation (IFC), and DEG (German Development Finance Institution) have also thrown their support behind it.
Vertex Ventures is going a step further by earmarking a co-investment fund of $50 million, specifically dedicated to collaborating with the parent fund in nurturing women-led startups. This initiative underscores the firm’s unwavering commitment to creating more opportunities for women entrepreneurs. Impressively, over 35% of the startups in its Fund IV portfolio boast at least one female founder, making this move both strategic and socially impactful.
“This fundraise is a testament to the quality of opportunities in the India and Southeast Asian markets,” said Piyush Kharbanda, general partner at Vertex Ventures Southeast Asia and India. The global opportunity is evident, but what excites us more is the ecosystem’s continued maturation and the caliber of founders with whom we are collaborating to build category-defining firms.
The VC has made more than 80 investments and has stated that it would continue to invest in industries such as enterprisetech, fintech, consumer internet, healthtech, sustainability, and mobility. Startups in Vertex’s India portfolio include Licious, KukuFM, and Kissht, among others.
Vertex also stated that it provided strong cash returns’ to its LPs from its previous funds after exiting investments in Grab, FirstCry, XpressBees, and Recko, among others.
“Investors in our earlier funds received outstanding cash-on-cash gains that consistently outperformed industry benchmarks. This impressive track record has not only encouraged the majority of our VVSEAI Fund IV investors to reinvest in VVSEAI Fund V but also to increase their commitment. Furthermore, we’ve significantly expanded our investor network and are thrilled to extend a warm welcome to all our Limited Partners,” shared Ben Mathias, the managing partner at Vertex Ventures Southeast Asia and India.
Vertex Ventures is unveiling its latest fund at a time when the venture capital landscape is flush with capital, yet hesitant to deploy due to the prevailing global economic conditions. According to data from Inc42, VC firms actively operating in India have collectively announced or finalized fund commitments totaling approximately $22 billion since the beginning of 2022, with an additional $4 billion in funds either announced or launched in 2023.
Vertex Ventures Southeast Asia and India’s successful fundraise highlights a buoyant investor sentiment in the startup ecosystem of the region. The firm’s emphasis on diversity and its proven track record further solidify its position as a leading player in the venture capital landscape.
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