To Support Female-led Startups, Vertex Ventures' SEA & India Arm Raises $541 Million for Fifth Fund

Vertex Ventures Southeast Asia and India has successfully secured $541 million for its fifth fund, demonstrating the increasing prominence of early-stage VC funds. Both existing and new investors, including sovereign wealth funds, financial institutions, corporates, and family offices across Asia and Europe, have expressed their confidence in the VC firm.

Within this fund, a noteworthy initiative has been established—a dedicated co-investment fund of $50 million earmarked for collaborating with the primary fund to support startups led by female founders. This commitment aligns with Vertex Ventures' goal of fostering opportunities for women entrepreneurs, particularly given that over 35 percent of startups in Fund IV already feature at least one female founder.

Initially targeting $450 million for its fifth fund, Vertex Ventures exceeded expectations, making it 80 percent larger than its predecessor, Fund IV, raised in 2019, which totalled around $305 million.

Piyush Kharbanda, General Partner of Vertex Ventures Southeast Asia and India, expressed enthusiasm about the quality of opportunities in the Indian and Southeast Asian markets. He emphasized the palpable macro opportunity and the maturation of the startup ecosystem, combined with the high-caliber founders, positioning Vertex Ventures for success.

Vertex Ventures Southeast Asia and India has a track record of delivering robust cash returns to its investors. It has successfully exited investments in prominent companies like Grab, FirstCry, XpressBees, and Recko, highlighting its ability to add substantial value to portfolio companies.

Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India, emphasized the fund's history of superior cash-on-cash returns consistently outperforming benchmarks. This track record encouraged many investors from Fund IV to return and increase their allocations, resulting in the expansion of the fund's investor base.

The VC firm is well-prepared to continue its investments across various sectors, including enterprise technology, fintech, consumer internet, digital health, sustainability, and mobility. These investments will primarily target emerging hubs in Southeast Asia and India, encompassing countries such as Singapore, India, Indonesia, Thailand, Vietnam, and Malaysia.

With this fresh capital injection, Vertex Ventures Southeast Asia and India is poised to further contribute to the growth and development of the regional startup ecosystem, providing support to innovative founders and pioneering companies.