Singapore-based Genesis Alternative Ventures today announced the final close of its venture debt fund at $ 80 million.
The fixed investor in the overregistered fund, named Genesis Alternative Ventures Fund I (GAVF-I), is Singapore’s Sassoon Family.
Japan-listed Aozora Bank, Korea Development Bank (KDB) and Hong Kong multi-asset investment firm Silverhorn Group also participated. Previous commitments include PT CIMB Niaga Bank of Indonesia and global investment fund Capria Fund based in Seattle.
KDB notes that by partnering with Genesis, the state-owned bank hopes to facilitate the expansion of Korean technology companies into Southeast Asia.
Genesis discloses that financial institutions, hedge funds and home offices account for about 75% of total commitments from investors across Asia, Europe, the Middle East and the United States.
Co-founded by Ben J Benjamin, Jeremy Loh, and Martin Tang in 2019, Genesis positions itself as a private lender to growth and adventure companies funded by level VCs. one.
Ventureous debt – often implemented in the form of premium, non-convertible guaranteed debit, coupled with equity options – is suitable for emerging, high-growth businesses that need road expansion. to the next stage of growth.
These companies may lack the track record to meet the traditional criteria for bank loans, or their founders may want to minimize equity. dilution.
So far, GAVF-I claims it has deployed more than $ 30 million in debt joint ventures for a growing portfolio of 12 venture-backed companies across Southeast Asia. They include Horangi Cyber Security, Indonesian collaboration provider GoWork and Lynk Global – an on-demand specialist networking platform, among others.
“Venture debt in Southeast Asia has come to the fore during the Covid era with entrepreneurs seeking more efficient capital and offering additional capital buffers. We are grateful for the strong support of investors who have embraced the venture debt model in Southeast Asia, ”said Loh.
“We are also delighted with the solid quality of companies in our portfolio. More and more of them are making a positive social and environmental impact, emphasizing Genesis’s commitment to profitable goals, ”he added.
Global data shows that there is considerable room for venture debt to grow in the region. Recently learn Pitchbook notes that in the US, venture debt has grown at a faster rate than the broader venture capital market, and that 2019 and 2020 are record years for tech firms to raise debt.
However, venture debt was estimated to account for about 2-4% of total venture capital in Southeast Asia last year.
Despite an extension of U.S. venture debt rollouts, venture debt in Southeast Asia continues to gain traction as the qualifying deal flow continues to grow 31 percent, according to internal Genesis statistics. Quarterly on an annual basis as of January 2020, according to Genesis internal statistics.
While GAF-I claims to be Southeast Asia’s first venture capital fund, Singapore-based InnoVen Capital – though positions itself as a venture debt firm (slightly different from a venture capital fund). ) – has supported quite a few companies across India, Southeast Asia. and China, including Fave, 123RF, eFishery and Oyo.
Image credit: Genesis Alternative Ventures
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