Experts and investors share insights in volatile venture capital market at CVCF 2022
- The venture capital market is boosted with dynamism as paced normalcy has returned to many regions with the waning of the pandemic.
- Despite geopolitical volatility and market challenges, investors and start-ups are cautiously optimistic about the VC market’s sustainable growth.
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The easing of the pandemic control measures and paced return to normalcy in Hong Kong and other neighbouring economies have helped increase optimism in the venture capital (VC) market amidst vibrant fundraising for start-ups in Southeast Asia.
The momentum in the region has been positive: Southeast Asia’s internet economy, led by Indonesia, is forecast to double to US$363 billion by 2025 from an end-2021 estimate of US$174 billion in gross merchandise volume. Investors are drawn to the region’s VC market because Southeast Asia has a large and young population that is increasingly affluent and digital-savvy. The region boasts a fast-developing innovation ecosystem and broadening exit rate avenues.
As of September 2022, firms such as Insignia Ventures Partners and SoftBank-backed East Ventures are among those that have raised a combined total of billions for start-ups over the past year as the region’s 650 million people were drawn to digital platforms. Sequoia has raised US$2.85 billion across a set of funds focused on India and Southeast Asia. That includes its first dedicated fund for Southeast Asia, with a pool of US$850 million.
Managing partner of Quest Ventures, James Tan, believes Southeast Asia continues to attract the attention of smart institutional investors. “As the world's fastest growing region, this is a once-in-a-lifetime opportunity for investors to tap into the potential of Southeast Asia,” he notes. “Quest Ventures, backed by institutional investors such as Temasek, has launched new funds focused on emerging opportunities.” Tan is also among the speakers at the CVCF 2022.