Singapore and Los Angeles-based seed investor Wavemaker Partners has achieved the final close of its third Southeast Asian fund at $111 million, exceeding its target of $100 million.
According to a statement by the firm, Wavemaker hit the final close in June this year, following its first close in April 2019. The fund is anchored by Temasek, Pavilion Capital, the International Finance Corporation (IFC), Concentric Equity Partners and Vulcan Capital.
A total of 73 limited partners (LPs) backed the vehicle, including a university endowment, institutional investors, family offices and HNWIs. Around 30 per cent of the capital came from investors based in Southeast Asia.
Wavemaker is one of Southeast Asia’s largest and most active seed investors, having invested in over 130 startups since 2012. Its previous $60-million fund in 2017 was already one of the largest seed funds of its time.
The firm’s noted exits to date include Moka (acquired by Grab), Wavecell (acquired by 8×8) and Red Dot Payment (acquired by PayU/Naspers).
The firm has clocked eight exits with a total enterprise value of $491.5 million. These include Art of Click ($21.5m), Coins.ph ($72m), Gushcloud ($8m), Luxola ($40m), Moka ($130m), Red Dot Payment ($65m), Wavecell ($125m) and undisclosed ($30m).
“We’re grateful to be able to achieve our fund target despite the tough economic environment. We’re hopeful that our focus on investing in enterprise and deep tech startup teams that solve meaningful problems with superior, differentiated offerings and robust unit economics will pay off in the long term,” said its managing partner Paul Santos.
Wavemaker added that the COVID-19 pandemic has helped strengthen its conviction around B2B businesses – a segment that remains largely undervalued in Southeast Asia.
The outbreak has seen large swathes of Southeast Asia’s 650 million-strong population adopt technology in their day-to-day lives. Small and medium enterprises (SMEs) – which comprise some 95 per cent Southeast Asian businesses – are also rapidly searching for more localised solutions to do better business.
About 86 per cent of Wavemaker’s Southeast Asian portfolio companies are enterprise-focused firms, while the remaining 32 per cent are deep tech and artificial intelligence startups. Some notable names include construction site management company Novade, B2B FMCG marketplace GudangAda, and laser communications startup Transcelestial.
Its assets under management (AUM) currently stand at about $180 million to date.