Category: Investment
Global Brain launches US$175 million sixth fund
Japanese venture capital fund Global Brain Corporation has officially launched its sixth fund, its founder and CEO Yasuhiko Yurimoto announced at the firm’s annual Alliance Forum on December 8.
Founded in 2001, the corpus of Global Brain’s first and second fund totaled only at US$17.5 million. This latest fund is the sixth which is valued at US$175 million and has a first close at US$ 130 million, with the final close expected by June 2017.
This latest fund has been financed by more than 10 companies and academic institutions, including travel agency JTB, Mitsui Sumitomo Banking, Sumitomo Forestry, Information Services International-Dentsu, and the public-private entity Cool Japan Fund.
With the closed US$175 million VC fund, Global Brain will be targeting investments in startup ventures of various industries, including sectors such as the internet of things (IoT), hardware, enterprise, robotics, education, and e-commerce solutions.
The fund will aim to invest in a portfolio between 70 to 80 companies over a period of 10 years, with ticket size ranging from 200 million yen (about US$1.7 million) to 1 billion yen (US$ 8.67 million) each.
The fund is also focused on investing in ventures that can strengthen Japanese tourism in the 2017-2019 period, given the upcoming Tokyo Olympics in 2020.
“With the Tokyo Olympics and Paralympics happening in 2020, Japan is in a time of change. We want to create an ecosystem that links this progress to a future beyond the Olympics,” Yurimoto said, emphasising an interest in ventures that could solve Japan’s societal and economic issues.
The future also includes a strong international focus, with Global Brain planning to deploy its capital in the startup ecosystems of Japan, Silicon Valley, South Korea, Southeast Asia, and Israel.
Southeast Asia, in particular, represents strong growth prospects for this fund, given the prevailing growth narrative of economies in the region.
This is a goal shared by its primary limited partners: the Cool Japan Fund, travel service conglomerate JTB, and mega-bank Sumitomo Mitsui Banking Corporation (SMBC).
With the closed US$175 million fund, this will bring the VC’s total funding raised to US$375 million, with its capital spread across 51 investments in 43 companies.
The firm’s portfolio list include Raksul – Japan’s own printing startup, Near – India’s location-based advertising venture, and Mercari – a used-goods application.
By Vivian Foo, Unicorn Media
Malaysian PE firm Creador closes Fund III at US$ 415 million
Southeast Asia and India-focused private equity (PE) firm Creador has reached the first close for its Fund III at US$415 million, falling US$35 million short of its initial target at US$450 million.
This latest round of fundraising has seen different investors varying from endowments, pension funds, family offices, international fund of funds (FOF) as well as a development bank, according to Edwin Cheah, the Director of Creador.
The private equity firm, based out of Malaysia, Mauritius, India and Indonesia in its previous two funds has raised a funding amount of US$130 million and US$331 million respectively.
“The sectors that Creador III will focus on are consistent with Creador II,” Cheah said. “But the businesses that we are excited about are ones that sell from one to many, B2C businesses that are targeting a broad base of consumers.”
In particular, the company will be looking at three investment themes – financial, consumer and business services. With examples of financial services being banks and finance companies, consumer services examples including branded products, media, retail, healthcare, and education while business services refer to B2B services, payment processing.
Established in September 2011, Creador is founded and headed by former ChrysCapital managing director Brahmal Vasudevan. On its global advisory board are other noteworthy former Malaysian corporate captains like Krishnan Tan and Dr. Thillainathan Ramasamy, as well as former Indonesian finance minister Dr. Ir Bambang Subianto.
The company’s Malaysian portfolio includes data and analytical tools provider CTOS Holding Sdn Bhd, medical and allied health education provider Asiamet Education Group Berhad and retail pharmacy chain RedCap Pharmacy.
While in Indonesia, the company has picked stake in companies like financing firm BFI Finance, TV operator MNC Sky Vision and cereal player Simba Indosnack Makmur.
Its India investments include Murugappa Group’s NBFC Cholamandalam Finance, Repco Home Finance, tile maker Somany Ceramics and PC Jewellers.
With this new fund, the Malaysia-based company is also planning to invest in newer markets, such as the Philippines and Sri Lanka, apart from its existing target markets Indonesia and Malaysia in Southeast Asia, and India.
“We are exploring opportunities in the Philippines and Sri Lanka and these new markets will be no more than 10% of the fund,” Brahmal Vasudevan, the founder and chief executive officer of Creador said.
“We are still working on the deal opportunities in Indonesia and will disclose further details once able,” he added.
By Vivian Foo, Unicorn Media
Singapore-based Rewardz secures US$2.1 million strategic investment from Japan’s Benefit One for expansion plan
Singapore-based human resource technology solutions provider, Rewardz Pte Ltd., today announced that it has secured a strategic investment from Tokyo-listed Benefit One Inc., a fringe benefit outsourcing service company established in March 1996 and claimed to have eight million members in Japan alone.
Following the deal, Benefit One has become the majority stakeholder in the startup, with an investment of S$3 million (about US$2.1 million).
Rewardz founders Sudhanshu Tewari, Nicole Seah, and Jaya Maru will maintain their shares within the company, together with Benefit One which had been appointed as a strategic investor as per December 1.
Rewardz has been digitising HR services in Singapore with products like EmPerks and Flabuless, which integrates traditional corporate benefits programmes with an online mobile application.
Tapping into gamification, the app allows staff to better visualise their benefits and track their health progress. The platform also allows employers to reward employees for their participation and progress.
The company stated that they are going to focus on monetising its current entities in Singapore, Malaysia, and Dubai in 2017. They also cited possibilities to expand into other Asian markets in the future.
“Although there are no immediate plans to enter the Japan market for Rewardz, we will be working towards integrating our technology into the Benefit One platform in Japan in the future,” Tewari explained.
But outside of Singapore, Rewardz is also available in Dubai, Hong Kong, Indonesia, Malaysia, and Australia. The company also claimed to have secured clients such as DBS, Manulife, Disney, NUHS, JTC, Fuji Xerox, DB Schenker, Intercontinental Hotel Group, Ascott Holdings, and Lendlease.
“One of the biggest challenges faced by any technology startup is funding the company until it scales up sufficiently to support itself. This long-term strategic partnership with Benefit One has solved this crucial problem for us and we will be fully focused on growth and to be scaling the business,” said Rewardz CEO, Sudhanshu Tewari.
By Vivian Foo, Unicorn Media
Three VC firms to launch US$375 million Biomedical Translation Fund
The Australian government under Turnbull has selected three VC management funds to administer its A$500 million (about US$375 million) Biomedical Translation Fund that is said to be Australia’s largest life sciences fund.
The three investment firms mandated to manage the government capital are – Brandon Capital Partners, OneVentures Management, and BioScience Managers – which have all been tasked to select and finance Australian start-ups in the health and medical research sector.
The capital fund is intended to boost life sciences sectors, specifically medical research projects in the advanced pre-clinal, Phase I and Phase II stages, according to a government statement.
The BTF was first pitched as part of the government’s National Innovation and Science Agenda which comprises A$250 million from the government with the remaining capital matched from the private sector.
Each manager was assigned to different portions of the fund but all three will screen investment proposals to the BTF and develop a broad portfolio of investment in Australian science and research.
Brandon Capital Partners has been appointed to manage a combined A$230 million fund, comprising A$115 million from the Commonwealth and A$115 million in private capital, which is contributed from Australian biotech giant CSL.
According to Brandon Capital, they will invest its $230 million through Australia’s largest life sciences fund, the new MRCF BTF fund which is occupied by a range of private investors including biotechnology firm CSL and superannuation funds AustralianSuper, Hesta, Statewide and HostPlus.
This would be the first time for the industry to have access to the sort of funds that it needed to supercharge it to the next stage. For as companies get into phase-two, instead of selling them, VCs now have the viable option and transformative capacity to support them into the next phase.
“On all measures, Australia has one of the world’s leading biomedical research industries, but unfortunately, too often, we see promising discoveries leave our shores early in development, with little value returned to the country,” the managing director of Brandon Capital, Dr. Chris Nave said.
“The size of the MRCF BTF provides the opportunity for these technologies in Australia to be developed to much later stages, and in some cases to even make it through to the market,” he adds.
Under his leadership, the MRCF BTF fund will invest in maturing technologies that have progressed to clinical studies. The VC is also expected to make its first investments in early 2017.
“The government has made a bold decision,” said Dr. Chris Nave. “Rather than spreading the money around and pleasing people, it has chosen to make sure it’s applied in a way that is going to grow the industry by choosing three funds.”
Meanwhile, OneVentures and BioScience Managers are to manage the combined Commonwealth and private capital commitments of A$170 million and A$100 million respectively.
On OneVentures Management side, the company said its fund would be open for business in January and would be looking to make initial investments in the first half of the year, investing $10m-$20m in each individual company.
The investment criteria for OneVentures’ fund is that a company’s innovation has reached clinical proof of concept, with phase-one or equivalent trial results; have a clear commercial, regulatory and reimbursement pathway; and clear value inflection and exit points on deal entry. It is looking for companies commercializing medical devices, drugs in clinical development or diagnostics.
On the other hand, Jeremy Curnock Cook, the managing director of BioScience Managers said, “What is required is not just more money but an investment approach that ensures that companies can access the right people and expertise to give their biomedical innovation the best chance to succeed in a highly competitive world market.”
“We really need to ensure that the next generation of companies like Cochlear, Resmed and CSL can grow and flourish from Australia and become international champions, and this investment capital will certainly go a long way to ensuring that,” he adds.
Mr. Curnock Cook also noted that it was important to remember that the money was not a handout, highlighting that the federal government was rightly expecting to achieve a good financial return on its investment on behalf of taxpayers.
By Vivian Foo, Unicorn Media
China Merchants VC leads funding round in tech media platform 36Kr.com
36Kr, a Beijing-based technology media platform and startup services provider had received around RMB100 million (about US$14 million) strategic investment in a new funding round led by China Merchants Venture Management Co., Ltd.
Investing as a strategic investor, China Merchants Venture hopes to cooperate with 36Kr in order to support the advancement of entrepreneurs and boost innovation in China.
“This investment is an important initiative for us. 36Kr has a unique advantage in venture capital and entrepreneur services,” said Lv Kejian, the general manager of China Merchants Venture.
This investment follows a Series D financing led by Ant Financial in the company last October. While Kr Space, 36Kr’s co-working space spinoff, received a combined RMB 200 million (about US$ 30 million) from Prometheus Capital and IDG Capital Partners.
Launched in 2010, 36Kr started off as a technology blog. But to date, the company currently operates four business units, which includes media, venture fundraising services, financial services and co-working space.
After this fundraising round, the company plans to separate and operate each of its business units independently, seeking further funding to grow each unit, as it did with its co-working space division – Kr Space.
The company also has ambitions to pursue an initial public offering domestically for its media and co-working space in the next few years.
With over 82,000 start-ups aggregated on its platform, 36Kr claims to have helped 2,000 start-ups raise venture funding. Its co-working space unit currently has 28 locations in China and plans to open dozens more.
By Vivian Foo, Unicorn Media