Indonesia-focused East Ventures closes 6th fund at target-busting US$75m

Indonesia-focused East Ventures closes 6th fund at target-busting US$75m

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INDONESIA-focused venture capital firm East Ventures has closed its sixth fund at US$75 million, with support by prominent startup founders helping to surpass the fund's initial US$30 million target.

Those investors include Facebook co-founder Eduardo Saverin, Alibaba co-founder Eddy Wu, Meituan-Dianping chief executive Wang Xing, Dianping founder Zhang Tao and Razer Inc co-founder Kaling Lim. Institutional investors include Temasek, the Singapore government-owned investment firm, Pavilion Capital and Adams Street Partners. The prominent family-controlled Sinarmas, Triputra and Emtek groups also joined in.

East Ventures co-founder Willson Cuaca said in a statement: "We are overwhelmed by the support given by our investors and decided to expand, but hard limit, the fund to US$75 million. We could have raised more but we wanted to maintain certain disciplines in this euphoria era."

In short, "We saw more money than good startups," Mr Cuaca told The Business Times.

The fund will focus on seed to Series A funding for Indonesian startups, the firm said. Its key sectors include small and medium business inclusion, new retail, fintech, news and media, healthcare, supply chain and digital transofrmation. Invested companies include Wahyoo, Stockbit and AllSome Fullfillment.

East Ventures had previously invested in South-east Asian unicorns Traveloka, Tokopedia, Grab, Gojek and ShopBack. It was recently named by Preqin as one of the world's most consistently top-performing venture capital fund managers based on fund returns as at the third quarter of 2018. Its biggest exit was from online-to-offline startup Kudo, which Grab acquired in a deal reportedly worth more than US$100 million.

Funding by venture capital firms in Southeast Asia touched a record high last year, with Indonesia's booming digital economy being a prime destination.