Genesis Alternative Ventures raises USD 125m for second venture debt fund
Genesis Alternative Ventures has raised total commitments of USD 125m for its second Southeast Asia-focused venture debt fund.
Genesis Alternative Ventures has raised total commitments of USD 125m for its second Southeast Asia-focused venture debt fund.
Fund II welcomes back over 80% of investors from Fund I, including Aozora Bank, Korea Development Bank, Mizuho Leasing, Sassoon Investment Corporation and Silverhorn. New and notable investors in Fund II include Japanese mega bank, Mizuho Bank, and OurCrowd, the online global investing platform.
Separately, Genesis and Indonesia’s digital-focused bank, Superbank, announced a collaboration in August 2023 to provide up to US$40 million of venture debt to promising technology start-ups in Indonesia. Superbank counts Emtek, Grab, Singtel and KakaoBank as significant shareholders.
Genesis also announced that Mr Philip Yeo, former Chairman of Singapore’s Economic Development Board, has joined Genesis’ Advisory Board. Mr Yeo is a veteran in the technology investment space across Southeast Asia and brings a wealth of experience and insights to guide Genesis’ continued growth and future strategies.
Fund II has already deployed venture loans of more than USD 20m to a handful of promising start-ups across the region, including in Singapore, Indonesia, Malaysia, the Philippines. The current market has brought about a shift in start-up profiles, with a focus on leaner structures and a profitable mindset. Genesis’ portfolio companies exemplify this new direction, positioning themselves for long-term sustainability and success.
Yasuhiro Kubota, Managing Executive Officer and co-CEO for APAC, Mizuho Bank, said: “We are delighted to come on board with Genesis on a shared vision in the venture debt space. Southeast Asia continues to be an exciting region with a thriving start-up ecosystem. We are confident that this partnership will accelerate the growth of promising firms with access to capital, industry networks and expertise led by Genesis.”
Genesis extends debt to revenue-generating companies that are backed by venture capital funds. These start-ups typically do not qualify for regular bank loans because they lack collateral, or have not yet reached profitability, and/or their founders and institutional investors are keen to take venture debt to build up the company’s credit worthiness while equally seeking to minimise unnecessary equity dilution.
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