After reports of Singapore’s state-owned Temasek’s venture capital arm Vertex Holdings raised US$70 million into its Vertex Master Fund II, it announced last week that the fund is closed at US$730 million.
Marubeni is investing US$50 million in the fund, and Sumitomo Mitsui Banking Corp. (SMBC) US$20 million, joining the previously pledged Japanese investors such as Aozora Bank and Risa Partners.
Joining in the investment this time are ABeam Consulting and the government-backed Development Bank of Japan, making Japanese investors have put up US$180 million in all – which is around a quarter of the US$730 million in total funding.
e27 reached out to Vertex Holdings to talk with Chua Kee Lock, CEO of Vertex Holdings, about the timing of the closing and what lies ahead for holdings.
“We closed our latest Vertex Master Fund II (VMF II) at US$730 million. VMF II will allocate capital to early-stage IT opportunities for Vertex network funds in China, Southeast Asia & India, Israel, US, global opportunities in healthcare as well as selected Vertex portfolio companies that are in the growth stage,” explained Chua in our interview.
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With VMF II managed entirely by Vertex Holdings, the company will have control in linking enterprises at home with the startups abroad to encourage technology and capital tie-ups, as well as acquisitions, especially with few Japanese investors just getting on board.
For startups, the fund will facilitate a chance to connect with Japanese companies with developed technological expertise and client networks.
Vertex Holdings seem to go from strength to strength after it was reported that in September this year its sixth fund exceeded its target of $250 million at US$290 million under Vertex Growth Fund.
As reported by Bloomberg, at that time the Vertex Growth Fund is the newest member of a global network operated by Vertex Venture Holdings Ltd., managed by James Lee. It has backed several startups including PerimeterX, Nuvaira, Instarem, and Bicycle Therapeutics.
Vertex Venture Holdings is an anchor investor in six funds across the U.S., China, Israel, Southeast Asia, and India with offices in Silicon Valley.
With the closing of VMF, Chua added: “There is sustained interest by seasoned investors in VC – it is still an asset class that offers high-returns persistence over the long term. We believe early-stage investing will remain a robust asset class for the foreseeable future. We continue to seek companies that are principally-focused on disruptive or transformational innovation.”
Beyond direct returns from its funds, Chua emphasises that the VC firm believes there is an exponential impact from the technology intelligence top VC funds can avail to corporates, portfolios, and economies in their transformational journey or in managing risks from technological disruption.
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“This is the value creation we avail at Vertex. By bringing Japan-based institutional investors on board, we are widening our network of innovation partnerships beyond our existing connections. This will be a core strategy for Vertex going forward,” Chua closed.
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Photo by Lily Banse on Unsplash
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