Singapore-based Genesis Alternative Ventures announced on Tuesday that it has closed its second Southeast Asia-focused venture debt fund securing commitments of $125 million, which is short of its $150 million target.
DealStreetAsia had reported in August 2022 that the firm had hit the first close of the debt fund.
Genesis had raised $90 million for its Fund I in 2019
Over 80% of the backers of the latest fund are investors from Fund I, including Aozora Bank, Korea Development Bank, Mizuho Leasing, Sassoon Investment Corporation and Silverhorn. New investors in the fund include Japanese megabank Mizuho Bank, and OurCrowd, an online global investing platform.
Dr Jeremy Loh, Genesis’ co-founder and managing partner, said they have already started deploying venture loans worth over $20 million from Fund II to startups across Singapore, Indonesia, Malaysia, and the Philippines.
Genesis has financed 25 companies across Southeast Asia including unicorns Matterport & Akulaku.
Genesis and Indonesia’s digital-focused bank, Superbank, had, in August 2023, announced a collaboration to provide up to $40 million of venture debt to promising technology startups in Indonesia. Emtek, Grab, Singtel and KakaoBank are some of the notable shareholders in Superbank.
Additionally, Genesis announced that Philip Yeo, former Chairman of Singapore’s Economic Development Board, has joined its advisory board. Yeo is a veteran in the technology investment space across Southeast Asia.
Genesis extends debt to revenue-generating, high-growth companies that are backed by venture capital funds. These startups typically do not qualify for regular bank loans because they lack collateral, or have not yet reached profitability, and/or their founders are wary of taking on too much venture capital for fear of diluting their ownership.
