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Asia-Focused Venture Capital Funds Raised by Non-Asia-Based Fund Managers – November 2013

by Jeviene Sim

  • 15 Nov 2013
  • PE

Asia has managed to preserve consistent economic growth amid ongoing struggles in the developed world over the past few years. The fast growing middle class, abundance of resources and the fast-developing economies of regions such as ASEAN have given Asia a timely boost, accentuating the region’s attractiveness for venture capital funds. In this blog, we take a look at Asia-focused venture capital funds being raised by non-Asia-based GPs.

Preqin’s Funds in Market tracks a total of 18 Asia-focused venture capital funds currently on the road that are being raised by non-Asia-based GPs. These funds are cumulatively seeking to raise $1.5bn in capital commitments. To date, thirty-three percent of these funds have held a first close, while 6% have managed to reach a second close. The remaining 61% these funds have not yet held any interim closes. Asia-focused venture capital funds raised by non-Asia-based GPs are targeting an average $111mn each, with target sizes ranging from $10mn to $250mn in capital commitments. Fifty-eight percent of these funds are looking to raise between $10mn to $100mn, while 21% have a higher fund-size target of $101mn to $200mn. The remaining 21% have a fund target of above $200mn.

In terms of geographic location, a sizeable 89% of these funds are managed by GPs based in the US, with the remaining 11% based in Australia. Fifty-five percent of Asia-focused venture capital funds raised by non-Asia based fund managers are looking to invest in solely one country within Asia, while the remaining 45% have their interests spread among two or more countries in Asia. Five percent of these funds are seeking investment opportunities in Australia, Malaysia and South Korea respectively. Eighteen percent will invest in China, and India remains the most sought after country at 22%. The other funds in this pool will invest regionally in pan-Asia opportunities.

In terms of investment preference, interests are quite evenly distributed. Out of these non-Asia based GPs raising Asia-focused venture capital vehicles, 56% are interested in venture capital vehicles generally, and have no particular stage focus. These venture capital funds range from seed investments to expansion/late-stage funding. Comparatively, 44% of the group will commit to venture capital vehicles at a specific investment stage, thirty-nine percent will focus on early stage funding and only 5% are solely devoted to expansion/ late stage funding. Lastly, in terms of industry preference, a substantial 83% of these funds seek to invest across diverse industries including technology, healthcare and communication, while the remaining 17% will invest solely in specific industries such as life sciences, semi-conductors and telecoms.

 

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