Chinese venture capital firm ZWC Partners says it is planning to spend more money in Southeast Asia.
USD 100 million have already been allocated to five investments in the region so far, from a USD 150 million Southeast Asia and China fund. It targets to channel another USD 300 million into the region in the next three years. Part of that will come from the ambitious USD 500 million second fund ZWC wants to start putting together.
Investments so far include Singapore’s online tuition startup Tenopy and Jakarta-based media company Target Media Indonesia. The firm has also invested in an unnamed Indonesian e-commerce platform and is currently eyeing potential investments in an Indonesian logistics first-mile provider and Singapore-based AI startup.
One of ZWC’s largest limited partners (LPs) for its first fund is Jason Jiang, the founder and chairman of Focus Media, one of China’s largest private media and advertising companies. ZWC’s other LPs include corporates, fund of funds, family offices and high net worth individuals in mainland China and Hong Kong.
ZWC Partners plans to invest in early to late-stage startups in the e-commerce, social commerce, fintech, and AI sectors
Checks will have an average size of USD 500.000 to USD 10 million for early-stage investments and USD 10 million to USD 60 million for growth-stage investments.
ZWC Partners co-founder and partner Terrance Lok said in an official statement that his firm is also interested in sub-sectors, including those that enable e-commerce, like first-mile fulfillment logistics and supply chain fintech.
The firm’s footprint in Southeast Asia includes a venture builder arm, Zynergy, that aims to provide financial, operational and strategic support for startups across the region.
Zynergy allocates USD 500,000 to USD 1 million initial seed funding for each selected startup and these will have access to Zynergy’s network of entrepreneurs and investors in China. The firm aims to work with at least five Southeast Asian startups through Zynergy program this year.
ZWC Partners currently has USD 1 billion in assets under management across more than 30 companies from its USD and RMB denominated funds. Most of its investments are in China, and they include social app Tan Tan, AI startup 4th Paradigm, food, and lifestyle e-commerce platform Global Scanner, and smart charging company Xiao Dian.
Update: The opening paragraphs of this article were edited to make clear that ZWC is not introducing a new fund, but that it will take a stronger Southeast Asia focus with its investments.
Editor: Nadine Freischlad