Digital Ventures, a financial technology-focussed firm under the umbrella of Thailand’s Siam Commercial Bank (SCB), has made a significant investment in Singapore-based venture capital firm Dymon Asia Ventures‘, enabling the latter to hit the first close of its maiden fund.
The news was first reported by Techcrunch which quoted Dymon Asia partners Jinesh Patel and Christiaan Kaptein, and the report added that the venture capital firm had hit the first close of its fintech-focusseed fund at US$20 million.
In addition to SCB, other undisclosed LPs have also committed capital towards Dymon Asia’s fintech fund, and the latter is looking to hit the final close for this vehicle, that is targeting to raise $50 million, by this year-end.
In September 2016, DEALSTREETASIA had exclusively reported that Dymon Asia Ventures – the newly created venture capital arm of Singapore-based Dymon Asia Capital – had kicked off the process to raise a $50-million debut fund, that would be dedicated to the fintech space.
Dymon Asia Capital, co-founded in 2008 by Danny Yong and Keith Tan, currently oversees assets to the tune of over $5 billion.
This portal’s report had also added that new venture fund will provide early stage capital (Seed to Series B) to fintech startups in Singapore and Southeast Asia that were working in areas such as asset and wealth management, insurance, and credit.
Dymon Asia Ventures plans to make between 10 and 15 investments from its debut fund, with about 10% of the corpus committed to startups it plans to incubate, 20 per cent to seed-stage firms, 50 per cent across Series A and B rounds and the remaining 20 per cent for select special opportunities. Ticket sizes range from $200,000 and all the way to $5 million.
Digital Ventures was founded in early 2016 to promote innovation in financial technology and be a key factor to drive change in the Thai banking industry. From its initial capital of $50 million, it had invested in two other VC funds prior to this – Singapore-based Golden Gate Ventures (in June 2016) and Nyca Fund II in January this year.
Thana Thienachairiya, chairman of the executive committee of Digital Ventures, said its investment in Dymon Asia would enable fintech startups in Singapore and Southeast Asia to have greater access to funding while allowing it to gain first-hand knowledge, market updates and insights about the business.
“Through the partnership with Dymon Asia Ventures, we will be able to start growing a fintech global network which, we believe, will give us more knowledge to help SCB and its customers in the near future,” he said.
Again, as reported by this portal last year, Dymon Asia Ventures has already begun making investments from its new fund, and currently has a portfolio of about five fintech firms, even as it is learnt to be evaluating another half-a-dozen potential investments, where some are even past the due-diligence stage. The fund has been prioritizing putting capital into startups targetting business-to-business investments in credit, asset and wealth, insurance, and blockchain technologies.
Its existing portfolio includes Singapore-based Capital Match, a peer-to-peer platform for invoice financing, 4XLabs, an enterprise Saas company that develops software solutions for money changers; Otonomos, which provides corporate governance services that cover a company’s life cycle, from formation to corporate governance and capital raising; WeConvene, a corporate access platform connecting providers with users in the investment management industry, and Spark Systems, which offers a solution for enterprise trading of emerging market FX.
Damon Asia is currently undertaking due diligence on more than 10 high-potential fintech and business-to-business firms.