Malaysian conglomerate Sunway Bhd sets up VC arm, targets to raise $50m

Malaysian conglomerate Sunway Bhd has, through its unit Sunway City Sdn Bhd, established a new venture fund, Sun SEA Capital, with a planned size of $50 million to invest in Southeast Asian and Hong Kong startups.

As per a statement on Tuesday, Sunway City has signed an Initial Exempted Limited Partner Agreement (LPA) to establish Sun SEA Capital LP as an exempted limited partnership with a proposed investment of $5 million.

The fund will seek to finance startups in Malaysia, Thailand, Singapore, Indonesia, the Philippines, Vietnam and Hong Kong, that specialise in online-to-offline convergence, enterprise solutions, logistics, digital media or entertainment, financial technology and digital health sectors.

According to Sunway, Sun SEA Capital is looking to cut Series A investments checks between the range of $1 million and $3 million.

The new VC fund would enable Sunway to accelerate its digital transformation through investments into digital startups and conduct external fundraising to grow the startups.

KK Fund’s Koichi Saito and Kuan Hsu will act as Sun SEA Capital’s consultants, directors and member of the fund’s investment committee.

“We hope to see Sun SEA Capital attract great talent from around the region to pursue sustainable growth with us. Koichi and Hsu’s experience and networks will help us widen our footprint in the region especially in Japan and Taiwan,” said Sunway Group president, Chew Chee Kin.

“Sun SEA Capital will help Sunway Group pursue new innovations by looking to invest in startups with technologies such as IoT, AI and blockchain towards the sustainability of its businesses. Essentially, Sun SEA Capital will provide a ‘plug-and-play’ scenario for the startups we invest in – they can plug into the powerful all-in-one system that Sunway has established and immediately play to grow. In addition, having the support of a conglomerate with financial strength also means that they have a clear and visible exit strategy,” said Koichi.

Sun SEA Capital is Sunway’s latest digitalisation strategy, as the conglomerate has launched its own incubator and accelerator, Sunway Innovation Lab last year and its corporate VC arm, Sunway Ventures that focuses on early-stage funding, two years ago.

Sunway was established in 1974, with core interests in real estate, construction, education and healthcare.

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