500 Startups announces new $50 million account for Southeast Asia


500 Startups‘ organization in Southeast Asia — 500 Durians — is behind with a new $50 million account to press on with early-stage startup dealmaking in a rising region, that depends over 600 million consumers.

Although it typically sits in a shade of India and China, Southeast Asia is staid to see vital tech growth. A new news co-authored by Google expected that Southeast Asia’s digital economy will strech $200 billion by 2025. With 260 million users now and an estimated 480 million by 2020, it is a world’s fastest flourishing internet marketplace — bringing 3.8 million people online for a initial time any month.

The strange 500 Durians account launched in 2013 to try those possibilities. Originally it was $10 million, though it was subsequently increasing to over $20 million in distance and it depends Uber opposition Grab, social commerce app Carousell and Indonesia’s Bukalapak among a portfolio. Now 500 Startups, that is led by Khailee Ng in Southeast Asia, is doubling down with a aim of $50 million for a second Durians fund.

A initial tighten is approaching to come over a subsequent month or two, with a final tighten expected subsequent year. Ng, who is operative with co-partner Vishal Harnal on a account and corroborated by a group of eight, said 500 Durians II was “kickstarted” and upheld by investors in a original, initial fund. Malaysia’s MAVCAP is among a LPs, with others entrance from China, Korea, a Middle East and Singapore among other places, Ng said.

Sticking to seed

While a series of supports in a segment that started out during seed theatre have grown into Series A, and potentially beyond, Ng told TechCrunch that Durians will maintain an early-stage focus, despite with some-more cash.

“What we’ve finished works and we don’t wish to get miserly about it,” he pronounced in an interview. “Pre-Series A, Series A and Series B is where all a new income is entrance in, nobody is unequivocally charging into seed theatre and those guys will need a tube of new deals. We’ll continue to feed a ecosystem.”

“Raising a account is easier now since we’ve got a lane record and people are excited,” Ng added. “Our first 20 deals have grown well, and a subsequent 20 are following a identical pattern.”

Ng pronounced a account will be used to cut checks that are typically adult to $100,000 as partial of seed rounds with other investors, nonetheless it could climb adult to $250,000 “if we see good stuff.” The aim is to account 100-200 deals and use a remaining supports for follow-on deals.

“We will be flattering discreet with follow-ons,” Ng clarified. “We’ll do them, though incomparable than before.”

Targeting non-traditional investments

It’s tough to remember a time when 500 Startups wasn’t a inclusive financier in Southeast Asia. It has invested in 119 startups in a segment to date which, according to CB Insights, means it has been concerned in one-quarter of all seed-stage deals in Southeast Asia.

That’s a towering statistic, even if some deals go unreported and askance a numbers, and Ng pronounced that one of his goals is to go over a “startup relate chamber” and strech entrepreneurs who are reduction informed with try collateral though are already bustling building companies that could advantage from it.

More generally, Ng pronounced his sights are set on business models that are proven abroad though nonetheless to enter a region. He’s also bullish on craving — and in sold systems that daub into adoption of mobile, messaging, etc — and see Saas business models developing in sophistication, too.

500 Startups has $10 million micro-funds in Thailand and Vietnam, and Ng pronounced that there is some seductiveness in arranging a identical setup in Philippines. The Durians account will especially demeanour during other markets in Southeast Asia — predominantly Indonesia, Southeast Asia’s largest economy, and Singapore — though might overlie co-invest with local funds in certain deals.

Generally, a classification has corroborated over 1,500 startups worldwide, and it has supports in countries like Mexico, India, a Nordics and more. The firm’s tellurian account closed with $85 million in commitments final year, a LPs embody Yahoo Japan, Tokyo-based Dentsu and MAVCAP.

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