Antler has reinforced its commitment to Southeast Asia with the successful closure of its second regional startup fund, raising $72 million. This fund aims to support early-stage startups in key markets such as Singapore, Indonesia, Vietnam, and Malaysia. The move comes as Southeast Asia faces a significant downturn in funding, with tech companies in the region raising $2.31 billion across 328 equity funding rounds between January and July 2024— a sharp 69.69% drop compared to the same period in the previous year.
Jussi Salovaara, co-founder and managing partner of Antler, believes that despite the current funding slump, now is an ideal time for early-stage investments. He pointed out that during economic booms, the market often becomes saturated with startups chasing rapid growth, leading to inflated valuations. However, in a downturn, weaker players are filtered out, allowing resilient and innovative startups to stand out and secure funding.
Antler’s SEA Fund II is poised to focus on the pre-launch, pre-seed, and seed money stages, with plans to allocate $27 million to 45 early-stage startups within the next six to nine months. In total, the fund aims to invest in approximately 300 startups. The firm emphasizes a hyperlocal approach, with a partner present in every Southeast Asian country to support deployment from the fund. The fund will remain sector-agnostic, but it identifies significant potential in fintech, health, and vertical AI startups that address critical needs in the region’s rapidly growing economies.
In addition to its early-stage investments, Antler will channel up to $10 million into growth-stage startups from Series A through its new growth fund, Antler Elevate. The firm has also introduced ARC (Agreement for Rolling Capital), which provides founders with up to $600,000 in rolling capital during the first six to nine months of their company’s lifecycle.
Antler’s commitment to Southeast Asia is further illustrated by its discovery of the region’s unique opportunities, particularly in Indonesia and Vietnam. The firm sees Indonesia’s youthful population as a strong market for consumer tech, while Vietnam’s skilled workforce is driving its emergence as a hub for high-tech manufacturing and gaming.
More than half of the funding for SEA Fund II comes from institutional investors, including a sovereign wealth fund, a pension fund, and a university endowment, although specific names have not been disclosed. Antler has already begun deploying funds from SEA Fund II, investing in companies such as Farmio, Zora Health, and Clout Kitchen.
Antler, with offices in over 30 cities globally, manages funds not only in Southeast Asia but also in India, Korea, Japan, and Australia/New Zealand. The firm’s Asia Pacific funds currently have $200 million in assets under management (AUM), with the combined AUM of the first and second SEA funds standing at approximately $100 million. The latest fund is three times the size of Antler’s first Southeast Asia fund, which was over $20 million and has invested in 91 companies to date.
Featured Image courtesy of Free Malaysia Today
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