South-east Asia focused early-stage investor Wavemaker Partners is targeting to raise a $100-million third fund in which International Finance Corporation, a member of the World Bank group, is likely to come in as a limited partner.
DEALSTREETASIA had first reported this development in August last year, that said the firm was looking to raise $80 million to $100 million for its third vehicle, and added that it had begun soft marketing the fund.
According to a filing, IFC, which is an existing backer, is looking to make an equity investment of up to $5 million, not exceeding 20% of the total fund commitments.
Wavemaker Pacific 3, L.P. or Wavemaker SEA Fund III is focused on seed-stage investments primarily in B2B companies led by exceptional entrepreneurs creating superior value by leveraging technology to deliver high-impact automation, data & intelligence.
B2B and deep tech-focused Wavemaker Partners, managed by Paul Santos and Eric Manlunas, had last raised $66 million for its second Southeast Asia vehicle in October 2017, exceeding its $50-million target. The firm has invested in 75 companies from the second fund. Limited partners in the second fund included Singapore-based Temasek Holdings, World Bank’s International Finance Corp, Tim Draper, and top corporates and family offices from the region.
Wavemaker typically makes small investments at the seed stage, with an average ticket size of around $250,000. Portfolio companies include fashion and lifestyle marketplace Zilingo, enterprise fraud management solution provider CashShield, 3D printing startup Structo, and artificial intelligence, AML solutions provider SilentEight.
Its prominent exits include cosmetics e-commerce startup Luxola that was acquired by LVMH, work chat app Pie (bought by Google) and mobile advertising startup Art of Click (sold to Xurpas for $45 million). About 80 per cent of Wavemaker’s portfolio comprises startups in the B2B space while over 20 per cent is in deep tech.