Originally published at Future Startup.
- Following the success of Accelerating Asia Fund I, Accelerating Asia has now opened its US$20 million Accelerating Asia Fund II to a wider investor community.
- Fund ll looks to bridge the market gap for pre-Series A investments in Southeast Asia & South Asia, the fastest-growing regions in the world, it will start to deploy capital in 2021.
- For Fund II, Accelerating Asia will increase its investment amount into startups to up to US$250K and invest in a greater number of startups.
- Fund II has initial commitments of US$10 million from existing Limited Partners from its previous fund, and partners.
- Accelerating Asia has joined Pledge 1%, a global movement to inspire, educate and empower every company to be a force for good. The team has pledged 1 percent of the General Partner’s carry as a form of corporate philanthropy to contribute to solving development problems across the region.
Accelerating Asia, a leading international early-stage Venture Capital Fund headquartered in Singapore, has launched Fund II. The targeted US$20 million fund already has around 50 percent in soft commitments from existing investors and partners. The fund will start to deploy capital in 2021 and is focused on seed to pre-Series A investments into high-potential startups across South East and South Asia. In a new initiative for Accelerating Asia, a percentage of the carry and profit from Fund II will be committed to corporate philanthropy as part of Pledge 1%.
Fund II is on track for its first close later this year, with Accelerating Asia already securing initial commitments of US$10 million from existing Fund I Limited Partners and ecosystem partners. Through Fund II, Accelerating Asia will increase its investment amount into startups to up to US$250,000 each. The VC fund looks to invest in a wider number of high potential early-stage startups with viable business models and is delivering innovative, commercially viable solutions to real-world problems across the region.
The launch of Accelerating Asia Fund II builds on the track record from Fund I which invested in 36 startups across ten markets and 20 verticals within two years. Fund I portfolio companies have collectively raised US$30 million to date, with around 70 percent of capital raised through Accelerating Asia’s network. Within 12 months of completing Accelerating Asia’s accelerator program, 80 percent of portfolio startups have received follow-on funding from the region’s leading VCs including, D4V, Chiba Dojo Fund, Headline Asia, Impact Collective, SOSV, MDI Ventures, Falcon Network, and Anchorless.
Craig Dixon, Co-Founder and General Partner of Accelerating Asia, shared, “We are excited for the launch of Fund ll and continuing to support growing the startup ecosystem in Southeast Asia and South Asia. With the fresh funds, we will be better positioned to take bigger stakes in high-potential startups, working closely together with founders to scale their growth. For our limited partners and investors in Asia, we focus on both increasing the chance for attractive returns while lowering the risk of their investment through our VC accelerator model that sets founders on the path for follow-on funding and leveraging their resources for dramatic growth. Alongside our close investment partners and LPs, we are bigger, better, stronger together.”
Accelerating Asia’s VC accelerator model provides investors with an access to a diverse pool of high-potential startups. The startups selected for investment represent the top 2 percent of over 1000 applications received each year. The rigorous selection process, investment structure, and accelerator program ensure that capital is efficiently directed to top-performing startups.
Amra Naidoo, Co-Founder and General Partner of Accelerating Asia shared, “The number of unicorns expected to rise in the region by 2025 and we believe now is the time to invest at the early stage to capitalize on outsized returns in Southeast and South Asia. With significant traction and investor interest, our startups are on track to raise Series A within 6 to 12 months of graduating our program and receiving investment from us and we believe they are well-placed to grow and scale and perhaps even be part of the dozens of unicorns expected to rise in the region by 2025.”
The Southeast Asia region is one of the fastest-growing in the world with development problems that technology has the potential to provide scalable, commercially viable solutions for. Accelerating Asia’s diverse portfolio includes 80 percent of startups that are addressing at least one or more of the Sustainable Development Goals, and 65 percent are considered Gender Lens Investments.
Accelerating Asia Fund II will not only extend and build on the work Accelerating Asia has been doing for the past 3 years through its investment in startups but through Pledge 1%, a global movement to inspire, educate and empower every company to be a force for good. Accelerating Asia has pledged 1 percent of the General Partner’s carry in Fund II.
“Through this pledge, 1 percent of the General Partner’s profits from Fund II will be committed to the development of more initiatives that support early-stage entrepreneurs solving important problems around the region. With the pledge, we will join the 10,000 members in 100 countries including the likes of Salesforce, Twilio, Canva to ignite half a billion dollars in new philanthropy” Amra said.