Singapore-based Golden Equator Capital and Korea Investment Partners (KIP) have teamed to raise a SGD $120m ($88m) fund to support Southeast Asian technology companies.
The vehicle is currently 65 per cent complete, with a first close expected to be held by the end of August. Following this, the firms hope to hold the final close by the end of the year.
Both firms will serve as general partners of the fund which will invest between SGD $2m and $5m ($1.4m to $3.6m) into Series A and B’s of tech companies. While the majority of funds will be invested into Southeast Asian startups, a ‘small portion’ has been reserved for Korean companies looking to expand to Southeast Asia via Singapore.
This partnership was also made in support of the Singapore and Korean government’s effort to bolster bilateral relations between the countries. Last week saw a memorandum of understanding signed by Enterprise Singapore and Ministry of SMEs and Start-ups of the Republic of Korea, to promote co-innovation and internationalisations of companies in the countries.
Korea Investment Partners CEO Baek Yer Hun said, “We are thrilled to partner with Golden Equator who has built a strong ecosystem in the SEA region through its businesses and its extended network. The fund will be a positive development for the bilateral relationships between Korea and Singapore as well as the venture capital investment landscape, further cementing both GEC and KIP’s positions as leaders in this space.”
Through the launch of this pairing, Korea Investment Partners will gain a foothold in the Southeast Asian region, with an office in Singapore serving as its headquarters for operations in the area.
Both Golden Equator and Korea Investment Partners have invested into the FinTech sector over the years.
KIP, which has an average IRR of 18 per cent, has previously backed mobile banking service Monese, P2P loan provider Lendit, and online personal finance solution SoFi, among others.
Golden Equator has invested into social payments platform fastacash, payment gatewat MC Payment and social payment app MYPay.
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