Golden Gate Ventures and Hanwha Asset Management Announce Joint Venture, Ready to Invest for Series B Funding

Golden Gate Ventures and Hanwha Asset Management announced a strategic partnership to invest in startups in Southeast Asia in the series B stage. The targeted segment is startups that focus on consumer-based platforms such as marketplace, fintech, health-techand logistics-as-a-service.

In their official statement, they believe investing in this segment can take advantage of the growing middle class which is growing rapidly. In addition to internet penetration support, smartphone, and other technologies.

Startups that focus on the consumer business, whether in mobility, trade, or logistics; will capture unique data from consumers and micro-consumers. The data is a starting point for deepening financial inclusion, healthcare and other emerging technologies across Southeast Asia.

Golden Gate representatives said that startups in Southeast Asia are experiencing a fairly large funding gap to get to series B. Even from the investor side, it is difficult to find those who are willing.

As a result, startups seeking funding at this stage are often in a difficult position. They do a syndicated round of many series A investors or appeal to alternative sources, so that in the end it doesn't match characteristics like those of a family company or private equity (PE) globally.

Referring to SVCA (Singapore Venture Capital & Private Equity Association) data, as many as 50% of startups in the US and Europe that are already in the series A stage have reached series B. The opposite condition occurs in Southeast Asia, where less than a third of which have reached the series B.

"This deep decline is largely due to a lack of funding in the region."

This Singaporean VC also recorded more than 215 series A funding that occurred within two years. Based on these historical trends, both companies expect there are at least 80-110 Series B investment opportunities available in the next two years. It is believed this figure will double in the next four years.

The announcement of this investment joint venture also strengthens the relationship between the two companies that had been forged five years ago, in 2014. At that time, the startup ecosystem in Southeast Asia was still in its early stages.

The two companies will leverage each other's resources to develop their next initiative. Starting from a global network of corporate partners and investor partners, experience in managing assets, providing professionals, and more.

Please note, Golden Gate Ventures is a VC that has focused on early-stage funding since its inauguration in 2011. Some of its portfolios are: Carousel, Alodokter, Carro, Funding Societies, Omise, Ruma, and others. Meanwhile, the well-known portfolio of Hanwha Asset Management is Zymergen, N26, Yanolja, and Grab.