Dear Reader,
This was the week the world shut down. One by one, countries closed their borders and people and businesses were forced into quarantine in a bid to contain the spread of the coronavirus.
Revenue and profit targets no longer apply, and equity markets were on a rollercoaster ride as investors failed to find reassurance about the economic fallout from the pandemic.
The private markets that DealStreetAsia covers have also been thrown into disarray. Private investors have told us that <a href="https://www.dealstreetasia.com/stories/startup-funding-delay-179984/" target="_blank" rel="noopener noreferrer">dealmaking is now on the backburner</a> as the priority now is ensuring that portfolio companies are well capitalised and have sufficient liquidity to survive the turmoil.
Unicorn tears
Even the giants are having a rough time. Just as it confirmed that it <a href="https://www.dealstreetasia.com/stories/gojek-funding-180187/" target="_blank" rel="noopener noreferrer">secured close to its fundraising target of $3 billion </a>in a Series F round, Indonesian ride-hailing platform Gojek was also <a href="https://www.dealstreetasia.com/stories/gojek-laid-off-employees-180308/" target="_blank" rel="noopener noreferrer">said to have laid off yet another 100 or so of its employees</a> over the last month or so. The company had already been through a round of cuts late last year, as it shut down a number of its ancillary businesses at its GoLife unit.
In an internal memo seen by DealStreetAsia, Gojek co-CEOs Andre Soelistyo and Kevin Aluwi also asked their troops to brace for tough times ahead, saying that doing more with less was going to be key. “As the economic slowdown takes hold, the availability of that investment will be reduced, so we should focus every dollar where we think it will make the most impact and not take our resources for granted,” they wrote.
Even as mature tech startups find their paths to profitability, their investors may not have a clear cut exit route. An initial public offering on the Indonesian stock exchange would be trickier than what it seems, according to <a href="https://www.dealstreetasia.com/stories/ipo-indonesia-market-roadblock-180460/" target="_blank" rel="noopener noreferrer">this analysis</a>.
Selective funding
As we have been reporting, the year ahead for new funds already looked bumpy. But the current crisis has brought on some new challenges. The week started out with <a href="https://www.dealstreetasia.com/stories/penm-partners-fundraise-179626/" target="_blank" rel="noopener noreferrer">this story</a> on Danish private equity firm PENM Partners expecting a delay in the close of its fifth fund. The fund, focused on the Vietnamese consumer market, was seeking to raise about $150 million by the middle of the year.
On the other hand, Indonesian venture capital firm SALT Ventures remains optimistic about its prospects. In an interview with our reporter in Indonesia, the fund’s partners said they expect to make 15 more investments by the end of this year, even as they are still in talks with LPs to <a href="https://www.dealstreetasia.com/stories/salt-ventures-debut-fund-179901/" target="_blank" rel="noopener noreferrer">close their debut fund</a> by the end of the year.
Also in Indonesia, e-forwarding startup Logisly is said to have <a href="https://www.dealstreetasia.com/stories/monks-hill-ventures-logisly-180688/" target="_blank" rel="noopener noreferrer">finalised at least $5 million in new funding</a> in a round led by Monk’s Hill Ventures. 
In Malaysia, payments firm iPay88 is in talks to <a href="https://www.dealstreetasia.com/stories/ipay88-fundraising-covid-179992/" target="_blank" rel="noopener noreferrer">raise as much as $25 million</a> for expansion. Potential investors hail from across Southeast Asia.
In China, venture capital firm ZhenFund, which is backed by Sequoia Capital China, is seeking to <a href="https://www.dealstreetasia.com/stories/zhenfund-sixth-vc-fund-180549/" target="_blank" rel="noopener noreferrer">raise $250 million</a> for its sixth VC vehicle.
Meanwhile, select startups on the mainland have managed to secure commitments from investors.
Sequoia China-backed robotics process automation solutions provider Shanghai Encoo Technology <a href="https://www.dealstreetasia.com/stories/china-deal-monitor-2-180018/" target="_blank" rel="noopener noreferrer">raised $30 million</a> in a Series B round.
Stonewise, a health-tech startup based in Beijing, <a href="https://www.dealstreetasia.com/stories/china-deal-monitor-2-180018/" target="_blank" rel="noopener noreferrer">secured $10 million</a> from investors including Long Hill Capital and Linear Venture.
Health is wealth
Indeed, the global virus crisis has turned the spotlight onto the critical need for robust healthcare systems. There are still significant gaps in public healthcare infrastructure that can be addressed by private capital, as <a href="https://www.dealstreetasia.com/stories/quadria-capital-interview-fund-ii-179397/" target="_blank" rel="noopener noreferrer">this interview with healthcare-focused private equity firm Quadria Capital</a> explores.
And as private investment in healthcare grows, particularly in the Asia Pacific region, <a href="https://www.dealstreetasia.com/stories/asian-healthcare-private-equity-180281/" target="_blank" rel="noopener noreferrer">investors are seeking out opportunities</a> in biotech and digital healthcare.
In China, state-owned pharmaceutical company Hunan Nucien is still set on tapping the public markets. It is <a href="https://www.dealstreetasia.com/stories/hunan-nucien-star-market-ipo-179940/" target="_blank" rel="noopener noreferrer">looking to raise $175 million</a> in an initial public offering on the Nasdaq-like STAR Market.
Meanwhile, startups are at the forefront of the global battle against COVID-19, whether in <a href="https://www.dealstreetasia.com/stories/emergex-covid-19-vaccine-180172/" target="_blank" rel="noopener noreferrer">developing a vaccine</a> or <a href="https://www.dealstreetasia.com/stories/biofourmis-covid19-179838" target="_blank" rel="noopener noreferrer">deploying a remote monitoring system</a> to help track the progression of the virus, and keeping medical workers from being infected.
As COVID-19 continues to wreak havoc across the globe, we expect more uncertainty ahead. But as we conduct ourselves from a safe distance, the DealStreetAsia team is committed to keeping the exclusives and analysis coming to you.
Michelle Teo, 
Managing Editor, DealStreetAsia

COVID-19 has thrown public and private markets into disarray and dealmaking, many investors tell us, is now on the backburner.

Editor's take: The week that was -- Mar 16-20

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Editor's take: The week that was -- Mar 16-20

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief