Silicon Valley-based Sovereign’s Capital has closed a $60 million fund to invest in early-stage startups in Southeast Asia besides its headquarters, the US, said sources privy to the development.
In Southeast Asia, Sovereign’s Capital’s focal market is Indonesia. This is even as the firm is open to tapping other markets as well, said one of the sources mentioned above.
“The fund has been closed a few months back, during the end of 2019, and the firm is currently scouting for opportunities in the region,” the source added.
When contacted, Sovereign’s Capital declined to comment on the development. We at DealStreetAsia got in touch with an executive taking care of the Southeast Asian market.
Going forward, Sovereign’s Capital is planning to deploy a third of the corpus raised to the Southeast Asian market.
Having opened its office in Jakarta (Indonesia) in 2014, Sovereign’s Capital’s portfolio companies in the archipelago include event management startup Loket (later acquired by Gojek), lunchbox startup Berry Kitchen, wedding marketplace Bridestory, and technology startup on education goKampus, among others.
According to information available on its website, the firm also has an investment in ride-hailing giant Grab.
It is understood that Sovereign’s Capital’s investments in Southeast Asia has so far been clocked from its third fund. However, this could not be independently verified.
Founded in 2012, Sovereign’s Capital focuses on both venture capital and private equity transactions and invests across sectors such as B2B software, healthcare IT, B2C software, tech-enabled goods and services, medical devices, and education, among others.
In terms of early-stage ventures, Sovereign’s Capital invests $250,000 to $2 million in startups with $500,000 to $10 million in revenue. For private equity, on the other hand, it typically invests in companies with revenues ranging from $10-100 million.