NY-based Palm Drive raising up to $150m for third US-Asia venture fund

Brooklyn Bridge, New York. Photo by Colton Duke on Unsplash

Palm Drive Capital, a New York-based venture capital firm, is raising up to $150 million for its third US-Asia focused fund.

According to a source close to the development, Palm Drive has begun reaching out to potential investors to back the fund, and has received positive responses from previous limited partners (LPs) to re-invest.

Its LPs are a mix of US and Asian investors comprising family offices, and founders across technology and traditional sectors. The VC has made about 70 investments across five continents so far. Palm Drive has about 6-9 unicorns in its portfolio, of which at least five it entered in the early stages.

Most of these unicorns are from the US. These include Walmart-acquired e-commerce site, Jet.com; SoftBank-backed Colombian delivery app, Rappi; and Alphabet-backed health insurance company, Clover Health.

The Asian unicorns Palm Drive has backed include Welab, a Hong Kong-based fintech lender, as well as Beijing’s Bitmain, the world’s largest designer of products for mining cryptocurrencies.

Palm Drive continues to focus heavily on the US for its investments, with at least 80 per cent of its portfolio today coming from the continent. It is, however, scouting for Asian opportunities to further diversify its portfolio.

The source added that Palm Drive recently invested in its first Southeast Asian startup – a Singapore-based company in tech-enabled healthcare services. It did not disclose how large the deal was, but said that Palm Drive typically targets Series A ticket sizes of $1-5 million for direct investments and $10-20 million for co-investments. 

NY-based Palm Drive is also open to becoming an LP in other VC funds, particularly those in blockchain, and Southeast Asian VCs. It has been in active conversations with blockchain funds in South Korea and China. 

Palm Drive also foresees itself making at least 2-3 exits this year. Its previous exits include Walmart’s $3.3 billion acquisition of Jet.com in 2016, and Palo Alto Network’s $173 million acquisition of cybersecurity company, Redlock last year. 

Palm Drive is led by Hendrick Lee and Seamon Chan, both managing partners at the VC firm. According to its official website, the VC has created technology firms worth over $1 trillion in combined market cap.

Palm Drive Capital declined to comment for this story.

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.