Insignia Ventures raises US$516m for early stage deals

Benjamin Cher

Published Mon, Aug 1, 2022 · 08:00 AM

VENTURE capital firm Insignia Ventures Partners has raised US$516 million for its third venture fund, IVPF III, an Entrepreneurs’ pool and an Annex Fund I in an oversubscribed fund close.

These funds will focus on early stage technology investments in South-east Asia, with institutional investors ranging from sovereign wealth funds to foundations to university endowments and family offices across the world.

Of the US$516 million, Insignia Ventures has raised US$388 million of it for IVPF III’s final close. Out of the remaining sum, US$28 million was raised for an Entrepreneur’s pool, which will invest alongside the fund and the remaining US$100 million was for a separate Annex Fund I.

Investors in the Entrepreneur’s pool comes from family offices of technology companies’ founders, and the rationale, according to managing partner Tan Yinglan, is to channel support and resources between investors and portfolio companies. The mandate for Annex Fund I is to provide follow-on investments in Insignia Ventures’ portfolio companies.

Insignia Ventures‘ portfolio includes second-hand car marketplace. Carro, Indonesian digital investment platform, Ajaib and unicorn GoTo among others. Insignia's portfolio enterprise value is over US$46 billion on US$304.9 million of invested capital, with a loss ratio of less than 2 per cent, and attracted US$7.7 billion in follow-on funding, according to Tan.

“Winners cannot just be defined by valuations and scale but are ultimately companies with sustainable unit-economics and concrete value creation. There is a fine balance between speed and endurance that defines our search for outlier returns,” said Tan.