East Ventures and SV Investment Collaborate to Form a Managed Fund Worth IDR 1,5 Trillion

East Ventures together with SV Investment, a Seoul-based VC/PE firm, formed managed funds with a new funding target of $100 million (around Rp. 1,5 trillion). This managed fund is given a name "East Ventures South Korea Fund in Partnership with SV Investment".

The fund was created to open an investment corridor between business ecosystems in Southeast Asia and Korea, including fund investment, knowledge transfer and network sharing. These funds will invest in promising startups and companies in several sectors such as biotech & healthcare, future mobility, green technology, media and content, and more.

East Ventures Managing Partner Roderick Purwana explained that this managed fundraising shows a strong synergy between East Ventures' deep expertise in the startup ecosystem in Southeast Asia and SV Investment's experience in the South Korean market.

"Together, we want to realize the great potential of the creation of the Indonesia-South Korea corridor to foster and accelerate startup growth in both regions. "This strategic partnership is proof of our commitment to encourage more innovation and shape a healthy and productive Southeast Asia [..]," he said, Friday (6/10).

This managed fund will be managed collaboratively by the two VCs, aiming to facilitate Korean startups and technology companies in attracting foreign capital, promoting company IPOs overseas, and exchanging valuable expertise and knowledge between ecosystems.

In addition, this strategic collaboration is expected to provide opportunities for investors to invest in Southeast Asian technology companies that can grow and evolve from consumer platform-based services to technology-intensive services.

Managing Partner of SV Investment David Junghun Bang said that his party sees great potential in Southeast Asia and believes that Indonesia will lead growth as the country with the largest economy in the region.

"Therefore, we are happy to collaborate with East Ventures, a leading venture capital company in Indonesia and Southeast Asia. [..] I am confident that SV Investment's proven investment experience in the technology industry as well as East Ventures' extensive portfolio and network, will bring positive changes to the venture ecosystem in Korea and Southeast Asia," he added.

SV Investment has several branch offices abroad, including Singapore, Boston (United States), Shanghai and Shenzhen in China. SV Investment is one of the most active Korean independent venture capital companies in Southeast Asia. In Indonesia, SV Investment is one of the investors of FinAccel (Kredivo) and THEN Motors.

Fund managed by East Ventures

Previously, East Ventures managed a managed fund that they formed themselves. There are three managements, namely Growth Plus of $250 million (more than 3,7 trillion Rupiah) which was announced in March 2023. The fund will specifically target late-stage funding within the East Ventures ecosystem that shows strong potential.

Then, the two previous managed funds, namely Seed and Growth, were said to have received good returns and had been extended to $585 million. This brings the total funds that East Ventures has raised since last year to $835 million.

It was explained that East Ventures portfolio companies have shown promising traction. As much as 60% of the portfolio is on positive EBITDA growth or a very clear path to positive EBITDA, and more than 40% of them have runway after 2025.

"The firm will continue to invest in early-stage and growth-stage companies through its Seed and Growth funds, while the Growth Plus fund will provide East Ventures portfolio companies with the resources to scale and reach their full potential," the company concluded.

East Ventures is one of the most active VCs investing in Indonesia. In the previous presentation, delivered until the first quarter of 2023, as many as 20 startups had been funded. $6,7 billion fell into the advanced investment category (follow-on funding).

East Ventures has also pocketed $86 billion in annualized GMV with $1 billion in Assets Under Management (AUM). It is recorded that 90% of their portfolio has positive margins.