Data Vantage: Private exchanges look to capture more secondary transactions

For every unicorn and soonicorn in Southeast Asia planning to list locally or overseas, there are several startups likely to remain private for a few years. For those holding shares in such companies, private exchanges provide a monetisation route through secondary market transactions.

Highlighting the growing activity in the secondaries market, private investment platform Fundnel recently said it received over 10 times more indicative offers in 2020 to sell than the previous year.

Private marketplaces that have a presence in Singapore

Source: SE Asia Private Marketplaces 2020, DATA VANTAGE

However, the recent financial performance of private marketplace operators has been a mixed bag, indicating there is a long way to go before secondary transactions become mainstream in the region. Hg Exchange, a company formed by Fundnel in partnership with PhilipCapital and Prime Partner in 2019, recently reported no revenue in 2020 and a net loss of $0.6 million.

Another private marketplace operator, ADDX (formerly known as iSTOX), reported its financial results in August. Its revenue and costs both went up in the financial year 2020, with its net loss widening to $11.7 million (see below).

Source: DATA VANTAGE

Meanwhile, Capbridge Cornerstone (formerly known as 1Exchange Pte. Ltd.) reported revenue of $0.17 million in 2020, down from the previous year, while its profit after tax remained flat. The exchange is Singapore’s first central bank-regulated private securities exchange and holds a Recognised Market Operator licence to facilitate secondary trading. For more details about the company and its fundraising and financials, go to DATA VANTAGE.

Other updates from DATA VANTAGE 

Singapore-based healthtech startup Neuroglee Therapeutics bagged $9.7 million in new funding this week, with the bulk of it coming from Openspace Ventures and EDBI. Last December, the firm had announced raising $2.3 million in pre-seed funding led by Eisai Co. Ltd, a global pharmaceutical company headquartered in Japan.

Singapore-headquartered Goama (also known as Go Games), which lets developers integrate games into their apps, received $240,000 in paid-up capital this week, of which $50,000 came from new investor Gamerforce Ventures.

Last-mile logistics startup Park N Parcel received $370,122 from entrepreneur Toh Eng Kui last week. The company, which allows users to have their online shopping haul delivered to registered residential and commercial parkers within a 1 km radius of their homes, has bagged $1.2 million in funding so far.

Pharma distribution network BuyMed secured $8.9 million in new funding this week led by South Korea’s Smilegate Investment. Other investors in the round include Cocoon Capital, Nextrans, B Capital and Sequoia Surge.

The financing comes over a year after the startup raised $2.5 million in pre-Series A funding from investors including Sequoia Capital India’s Surge early-stage accelerator program and Japan’s Genesia Ventures.

Resync Technologies, an energy management firm, received $1 million in funding from GGV Capital last week. Backed by SGInnovate, an investment arm of the Singapore government that focuses on early-stage deep tech investments, the startup has raised $1.8 million in equity funding so far.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.