Singapore-based fintech venture capital (VC) firm Life.SREDA and international investment group Marvelstone have inked a memorandum of understanding (MOU) involving joint investments and startup support in Asian countries, starting in South Korea.
Each firm is ready to contribute up to $10 million in selected fintech startups and will collaborate on providing startup assistance, information exchanges for business incubation, research and development. The MOU will also permit three companies to collaborate on accelerating startups, using Life.SREDA’s InspirAsia in Singapore and Marvelstone’s affiliated accelerator 10K.
Commenting on the partnership, Gina Heng, the CEO of Marvelstone, explained: “We’ve chosen to work with Life.SREDA because they are experts in fintech investments and know global fintech markets and trends well. They understand the potential and opportunities of Asia’s fintech sector, and we share the same vision for growth in Asia.
Heng added, “Marvelstone’s local understanding and expertise in Asian financial and tech sectors, coupled with Life.SREDA’s specialized experience, are expected to help Asian startups bring forth further innovation, by giving them access to global fintech expertise and research.”
InspirAsia is seeking out post-seed and early Series A startups from Asian countries developing fintech solutions in the following areas: mobile payments, P2P transfers, remittances, mPOS and online acquiring, online lending, scoring, P2P lending, mobile banks, eWallets, payment services for restaurants and cafes, and mobile cash registers for retailers.
The accelerator plans to invest between $50,000 – $300,000, depending on their stage of development. In exchange, InspirAsia will get 5-15 per cent equity and $200,000 worth of support services.
With regional presence in Hong Kong, Singapore and Korea, Marvelstone has executed a number of investments in diversified industries such as insurance, hospitality, real estate and tech across Asia since 2012, and it aims to develop and invest in more companies over the next few years.
“There are many fintech startups in South Korea. If local [South Korean] VCs and banks will actively invest beyond South Korea, in different countries, it will grant them access to new markets, without the need to obtain licenses or open offices. They can also tap new products and technologies for local customers in Asia”, said Vladislav Solodkiy, managing partner at Life.SREDA VC.