PRIVATE investment technology platform Fundnel Group on Monday (May 9) signed a memorandum of understanding (MOU) with BRI Ventures (BVI), state-owned Bank Rakyat Indonesia’s corporate venture capital arm, to launch a new fund for startup investment.

The new BVI-Fundnel Secondaries Fund will allow global investors to invest directly in Indonesian growth-stage startups, giving existing investors the chance to reinvest capital in other opportunities.

Fundnel and BVI expect to attract investments of at least US$50 million to the fund.

Both companies will also work with startups to create standardised processes for employees who are looking for secondary liquidity for their stock options.

This MOU comes amid heightened activity in the secondary market in South-east Asia, as venture capital fund lives come to an end and early-stage investors start to look towards selling their stakes.

Singapore-based Fundnel said it received a total US$22 billion in secondary transactions across more than 1,000 orders over the past 3 years.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Kelvin Lee, co-founder and chief executive officer of Fundnel, said: “This MOU builds on our existing strong partnership with BVI and by combining BVI’s extensive network and Fundnel’s digital marketplace, we are confident to be strategically placed to assist startups in achieving their growth trajectory and potential.”

Nicko Widjaja, chief executive officer of BVI, noted that the startup exit environment has been more challenging these days due to various unfavourable macro conditions that have led to a supply crunch.

“Together with BVI’s strong track record of investments and huge ecosystem and Fundnel’s extensive pipeline of secondary opportunities, this partnership will also serve as an attractive entry point for larger foreign funds to enter growing Indonesian tech startups,” he said.