Early stage venture capital firm Vertex Ventures Southeast Asia and India has raised $541 Mn for its fifth fund, the VVSEAI Fund V. The VC firms initial target was $450 Mn for the fifth fund, which is 80 percent larger than the $305 Mn fourth fund which it raised back in 2019.
The Fund V is backed by existing and new limited partners, including sovereign wealth funds, financial institutions, corporates and family offices across Asia and Europe. The new limited partners include Japan Investment Corporation, International Finance Corporation and DEG (German Development Finance Institution).
The new fund has come on the heels of strong cash-on-cash returns from its portfolio. According to the firm’s statement, Vertex’s exits include Grab, FirstCry, XpressBees, and Recko, and several others.
“Our earlier funds have had superior cash-on-cash returns and are outperforming benchmarks. This track record led most of our investors from VVSEAI Fund IV to return as investors in VVSEAI Fund V and increase their allocation. In addition, we expanded our total investor base significantly and are happy to welcome all our Limited Partners,” said Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India.
The firm also said that over 35 per cent of the start-ups in its Fund IV portfolio have at least one female founder, and the firm aims to further women’s participation in the industry. The VC firm has also set aside a co-investment fund of $50 Mn for partnering with the parent fund in women-led startups as it aligns with its commitment to promote and offer more opportunities for women entrepreneurs.
Vertex Ventures has made more than 80 investments. The firm will continue its strategy of investing in early-stage technology and technology-enabled companies in sectors such as enterprise technology, fintech, consumer internet, digital health, sustainability, mobility, and others.