US-based VC firm Goodwater Capital – an active investor in Asia – has raised $1 billion in new funds to invest in global early and growth stage consumer tech startups.
The firm said in an announcement that it also had access to an additional $500 million to support late-stage hypergrowth companies.
The firm was seeking to raise $455 million each for Goodwater Capital IV, L.P. and Goodwater Infinity II, L.P, per its filings with the US Securities and Exchange Commission in March.
Goodwater Capital declined to disclose more details about the new funds.
Founded seven years ago, the US investor has made investments in over 25 countries, with over 140 companies powering $150 billion in annualised financial and e-commerce services.
“We believe consumer technology is the most powerful force on earth, shaping global culture and transforming the global economy in unprecedented ways,” Goodwater Capital said in its announcement posted on LinkedIn.
Goodwater Capital’s investments, which had primarily been focused in South Korea, have ramped up in South and Southeast Asia since the start of 2021.
Goodwater Capital has made investments in over a dozen Asian tech companies this year, eight of which come from India and Southeast Asia.
The firm’s transactions in Asia before 2021 were in S Korean and Japanese tech businesses such as fintech companies Toss and Kyash, proptech Dongnae, and media startup Spoon Radio.
Goodwater Capital’s Asia investments in 2021
|Class101||South Korea||Edtech||Series B||$25.8m|
|Karrot Market||South Korea||E-commerce||Series D||$162m|
|Mathpresso||South Korea||Edtech||Series C||$50m|
|MoMo||Vietnam||Fintech||Series D||Around $100m|
Source: DealStreetAsia and Crunchbase
Eric Kim, co-founder and managing partner of Goodwater Capital, told DealStreetAsia in an earlier interaction that the firm’s focus on consumer tech enabled its flexibility in terms of how large the cheque size could be.
“We’re here to help and serve entrepreneurs from seed to growth stage,” Kim had said then.
“We are impressed with the way global entrepreneurship is growing in Southeast Asia. Our involvement in Southeast Asia, Vietnam specifically, happens very organically,” he added.
Kim opined that when he first invested in South Korea, there were a lot of questions around tech exit possibilities in this market. But such success stories as Kakao and Coupang, also Goodwater Capital’s portfolio companies, have proven that “the global startup ecosystem outside the Silicon Valley can be vibrant, dynamic and rapidly growing”.