{"id":1654209,"date":"2022-09-23T03:50:11","date_gmt":"2022-09-23T07:50:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1654209"},"modified":"2022-09-23T03:50:43","modified_gmt":"2022-09-23T07:50:43","slug":"funds-flock-to-southeast-asian-startups-as-china-loses-sheen","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/funds-flock-to-southeast-asian-startups-as-china-loses-sheen\/","title":{"rendered":"Funds flock to Southeast Asian startups as China loses sheen"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffunds-flock-to-southeast-asian-startups-as-china-loses-sheen%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1654209&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Anshuman Daga and Yantoultra Ngui<\/p>\n<p>SINGAPORE (Reuters) \u2013     Southeast Asian startups are enjoying a boom in fundraising exercises by venture and buyout funds that are chasing bigger returns and turning away from regulatory turmoil in Chinese markets, even at the risk of slower growth.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Firms such as Insignia Ventures Partners and SoftBank-backed East Ventures are among those that have raised a combined total of billions for startups over the past year as the region\u2019s 650 million people take to digital platforms.<\/p>\n<p>\u201cSome of the world\u2019s largest institutions are coming up with strategies now to invest and deploy capital into regions like Southeast Asia, which six to seven years ago may not have even had the ability to absorb cheques of a large enough size,\u201d said Vishal Harnal, a managing partner at venture fund 500 Global, with $2.8 billion in assets.<\/p>\n<p>Harnal was one of the scores of investors gathered in Singapore this week at SuperReturn Asia, a private equity and venture capital conference, for whom Southeast Asia tops the investment rankings.<\/p>\n<p>\u201cToday, there\u2019s much stronger appetite for India and Southeast Asia,\u201d Joel Thickins, co-managing partner at TPG Capital Asia, told Reuters.<\/p>\n<p>Led by Indonesia, Southeast Asia\u2019s internet economy is forecast to double to $363 billion by 2025 from an end-2021 estimate of $174 billion in gross merchandise volume, a report has cited Google, Temasek and Bain &#038; Company as saying.<\/p>\n<p>Ridehailing and food delivery firm Grab Holdings listed on Nasdaq in December after a $40-billion merger, while Indonesian rival GoTo, raised $1.1 billion in a domestic listing this year.<\/p>\n<p>This month, digital financial services group Fazz raised $100 million and Indonesia\u2019s Xendit, which bills itself as Southeast Asia\u2019s alternative to payments processor Stripe, announced fund-raising of $300 million in May.<\/p>\n<p>The enthusiasm persists despite due diligence for startups that requires many months while valuations are under pressure, investors said.<\/p>\n<p>\u201cFor want of a better word, FOMO is also present,\u201d added Harnal, referring to the \u201cfear of missing out\u201d he saw motivating many institutional investors who lost out on \u201cphenomenal\u201d returns as they were late in backing entrepreneurs in China. <\/p>\n<p>DIVERSIFYING FROM CHINA<\/p>\n<p>Southeast Asia is benefiting from Beijing\u2019s tough lockdowns and other measures to rein in COVID-19 in China and Hong Kong.<\/p>\n<p>But although funds were diversifying, investors said the region\u2019s vastly different markets meant a uniform investing strategy was not ideal.<\/p>\n<p>\u201cIt\u2019s not that they don\u2019t believe in China, just that they are reducing that exposure,\u201d said Tang Kok-Yew, the founding chairman of Affinity Equity Partners.<\/p>\n<p>\u201cWhere can they go? One area that I constantly notice that everybody is very interested in is Southeast Asia. Unfortunately that\u2019s the market that is the hardest to penetrate.\u201d<\/p>\n<p>Registered to attend the SuperReturn event were 500 so-called limited partners, who offer capital for investors, such as the Houston Firefighters\u2019 Relief and Retirement Fund, as well as about 700 venture and buyout firms, such as Schroders Capital, along with Chinese family offices.<\/p>\n<p>Despite all the interest, the region might still have some way to go in the quest for funding.<\/p>\n<p>\u201cThere are still individual U.S. cities where startups are raising more money than all of the startups in Southeast Asia,\u201d said Julie Ruvolo, managing director of venture capital at Global Private Capital Association, which says its 300 members manage assets of more than $2 trillion.<\/p>\n<p> (Reporting by Anshuman Daga and Yantoultra Ngui; Editing by Clarence Fernandez)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/funds-flock-to-southeast\/attachment\/a-man-passes-the-city-skyline-during-the-coronavirus-disease\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8M077-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8M077-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Anshuman Daga and Yantoultra Ngui SINGAPORE (Reuters) \u2013 Southeast Asian startups are enjoying a boom in fundraising exercises by venture and buyout funds that are chasing bigger returns and<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1654209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1654209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1654209"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1654209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1654209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1654209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1654209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}