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Golden Gate Ventures unwraps US$50m fund for Southeast Asia

SINGAPORE – Singapore has yet to produce anything as big as a Whatsapp, Google or Facebook, but it sure is not for want of trying.

SINGAPORE – Singapore has yet to produce anything as big as a Whatsapp, Google or Facebook, but it sure is not for want of trying.

Singapore, which leads Southeast Asia in terms of the number of start-ups, is capturing the lion’s share of tech investments in the region, a report by venture capital firm Golden Gate Ventures said yesterday.

The report came as Golden Gate Ventures launched a second, US$50 million fund that will take stakes in tech companies in Southeast Asia. Singapore investment firm Temasek Holdings and Facebook co-founder Eduardo Saverin are among the main investors.

The Golden Gate Ventures Fund II has already raised US$35 million and expects to gather an additional US$15 million, said Mr Vinnie Lauria, managing partner of Singapore-based Golden Gate Ventures, in an interview with Bloomberg on Tuesday.

“We took the step to bring in strong local partners for the fund,” Mr Lauria said, while declining to comment on how much Temasek and Mr Saverin, who lives in Singapore, are investing.

Mr Lauria said that part of the attraction for Temasek is the access the new fund will give to a range of early-stage investments, which will help it assess the companies for further potential investments.

A Temasek spokesman confirmed its participation in Golden Gate Ventures, but declined to comment further. Mr Saverin could not be reached for comment.

Golden Gate Ventures launched its first fund in 2012 and has so far invested in 20 Asian companies including Singapore online grocery firm RedMart and Carousell.

Golden Gate sees strong growth in the venture-capital business in Southeast Asia over the next few years, matching the gains in China and India during the past decade. The number of venture-capital deals worth between US$1 million and US$10 million is expected to double to 40 next year in Southeast Asia, according to the Golden Gate study on the prospects for the region.

“Aggregate Series A investments in Southeast Asia in 2015 are expected to be approximately US$85 million, which is similar to those of India in 2010 and China in 2005; the aggregate Series A investment in Singapore in 2015 is expected to be around US$55 million,” it said in the report.

AGENCIES, WITH ADDITIONAL REPORTING BY TAN WEIZHEN

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