Singapore-based startup accelerator-cum-VC fund, Accelerating Asia (AA), is engaged on a “bigger” fund to help the startups in its cohorts.
The agency, which has already raised the preliminary cheque, plans to launch the fund as early as Q1 2021.
“We have already got a Financial Authority of Singapore-licensed fund value US$10-million car to spend money on the primary two cohorts,” Co-founder and Basic Companion Craig Dixon mentioned in an interview with e27.
“We’re going to be launching a bigger fund in Q1 of 2021, which is solely to spend money on our cohort corporations,” he added.
Though the precise dimension is but to be decided, the brand new funding car can be “considerably bigger”, most likely within the vary of US$20-50 million.
Additionally Learn: Accelerating Asia announces 8 startups selected for its third cohort
AA expects its present Restricted Companions to spend money on the brand new fund. Nonetheless, because the goal dimension is way bigger, it has opened up the doorways to bigger institutional traders and is having conversations with some establishments.
“The primary fund was primarily funded by particular person LPs and household workplaces, whereas the second fund can have a a lot bigger stake taken up by institutional traders,” Dixon disclosed.
Based on him, AA has the choice to speculate extra through the cohort after which it has its commonplace pro-rata to take part in follow-on rounds.
“So the bigger fund will most likely have more cash devoted in direction of additional pro-rata and the follow-on rounds, whereas the primary fund was primarily round these preliminary funding cheques and the short-term financing wants of our startups,” he added.
On being requested about AA’s growth plans, Dixon mentioned that AA is increasing into new geographies in Asia, together with India, Bangladesh and Sri Lanka.
It’s at the moment within the means of forming partnerships with some Indian traders, and already has tie-ups with a number of entities in Bangladesh and Sri Lanka.
“Sri Lanka is interesting as a result of it has a number of similarities with Bangladesh. There’s a number of previous industrial base that’s ripe for digitalisation,” he mentioned.
The island nation has began seeing traders equivalent to Sequoia, and another VCs even have began sniffing round. There’s additionally a number of enterprise house owners with capital.
“Lanka, like Bangladesh and Indonesia, additionally has a brand new era of people that run household companies that want to make their mark by investing in innovation and new product strains,” he continued.
“There’s additionally a number of authorities help for the startup ecosystem in Sri Lanka (it was via the federal government help that Singapore turned primary within the area). So there’s a number of dynamics that time positively in direction of good issues popping out of Sri Lanka’s ecosystem. And we’ve had an excellent expertise with that up to now,” he mentioned.
Picture Credit score: Accelerating Asia
The submit Accelerating Asia plans to launch a new ‘up to US$50M fund’ in Q1 2021 appeared first on e27.