Vertex Venture Holdings raised US$230 million in the first close of its fourth Southeast Asian fund to back technology startups across the region and India.

The Singapore-based venture capital arm of Temasek Holdings plans to finalise the funding in the next few months, which could take it above the first close, said Chua Kee Lock, managing partner of Vertex Ventures Southeast Asia and India.

Most of the investors in its third fund, including Cathay Financial Holding, have backed the new one.

After the success of its bet on ride-hailing app Grab, now Southeast Asia's most valuable startup, Vertex plans to continue backing early-stage technology for financial services, enterprise and consumers in the region.

The net internal rate of return of its third Southeast Asian and Indian fund, which started in 2016, was 45.2 per cent as of December, according to a presentation to investors.

"Our investors have shown confidence in us by participating in the first closing, which hit the initial target of the fund," Mr Chua said.

"The reality is that there are some concerns about the trade war and valuations and the fundraising environment is getting harder."

Earlier Vertex investments include online shopping store FirstCry.com; InstaReM, a cross-border digital payments startup; Validus, an online financing marketplace; and Binance Asia, a cryptocurrency exchange platform.

The VC firm got its start three decades ago and Mr Chua joined as chief executive officer of Vertex Venture Holdings in 2008 and expanded it into a global operation with US$2.5 billion under management as of October.

Today, it manages portfolios in China, Israel, India, Southeast Asia and the US.

The new fund comes amid a flurry of fundraising activities in the region. Jungle Ventures is currently raising a US$200 million fund, while Golden Gate Ventures has teamed up with South Korea's Hanwha Asset Management to raise a US$200 million fund.

This news was first appeared in The Business Times (Singapore)
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