AC Ventures (ACV), a enterprise agency focused on early-stage startups in Indonesia and the the rest of Southeast Asia, has reached the predominant shut of its fifth funding fund (Fund V). The fund is focusing on $250 million and has raised sixty five% of that capital to this point, largely from restricted companions who invested in ACV’s earlier funds. Fund V has already made 5 investments, collectively with SkorLife, preferrred and Atma.
The final time TechCrunch coated ACV was in December 2021, when it closed its Fund III. (Its fourth fund is focusing on Malaysia and run by a separate workforce).
based in 2014, ACV’s portfolio now has over one hundred twenty investments in Indonesia and the the rest of Southeast Asia. Some noteworthy firms embody Xendit, Carsome, Stockbit, Ula, Shipper and Aruna. Its workforce has grown to 35 of us, with most primarily based in Indonesia, however ACV additionally at present established Singapore and Malaysia workplaces. Half of ACV’s management workforce are ladies and throughout its portfolio that decide is forty%.
ACV at present employed Helen Wong as managing associate. Wong beforehand labored at GGV and Qiming Ventures and has served on the boards of startups like Tudou and Mobike.
The agency is sector-agnostic, however a lot of its investments are in fintech, logistics, e-commerce, MSME and shopper know-how. Fund V will even deal with new themes collectively with local climate tech. The agency’s test measurement in early-stage firms is usually $2 million, and it reserves a large a aspect of every fund for observe-on investments.
“Broadly talking, we’re investing inside the digitization of Indonesia and the Southeast Asia economic system,” ACV co-founder and managing associate Adrian Li advised TechCrunch. “final 12 months, Indonesia’s digital GDP was $70 billion and that’s anticipated to develop to over $350 billion inside the following 5 to six years. by way of our expertise of investing over previous funds, we’ve additionally developed expertise, significantly round commerce alternatives, fintech and micro- and small enterprises. every of these thematic areas signify actually deep swimming pools of income potential and we’re seeing a full lot of the approach by way of which digital adoption can truly make issues extra environment nice, value much less and create worth for all of the stakeholders in these verticals.”
collectively with Southeast Asia, Fund V’s LPs come from North Asia, the usa, the center East and Europe. Li said worldwide buyers are drawn to Southeast Asia as a outcome of it continues to level out proof of being a maturing market, with the worthwhile IPOs of unicorns like GoTo and Bukalapak, an enhance in later-stage capital and extra secondary exits.
With its deal with early-stage firms, ACV is usually the predominant institutional investor in startups.
“Our fund performs on a worthwhile approach we’ve continued to refine to be early-stage focused,” said Li. “that means backing firms at a stage the place we is most likely actually useful inside the shaping of a enterprise as they construct it, and in addition at a stage the place we is most likely significant buyers partnered with them. We usually put money into 30 to 35 firms per fund and reserve a deep observe-up ratio, 20-1, to place money into firms that are executing and creating worth.”
ACV’s efforts to assist founders embody a quantity of key appointments who will work intently with startups. they’re Lauren Blasco as head of ESG, Leighton Cosseboom as head of PR and communications, and Alan Hellawell as a senior advisor and enterprise associate.
The agency’s worth-add consists of working with founders to lease key expertise and sharing expertise operation playbooks. Li said ACV likes to speculate early as a outcome of as teams develop, it might assist startups lay down fundamentals for tradition, retaining expertise and communication. It additionally helps firms with compliance and governance, like guaranteeing they’ve useful boards and a superb set of advisors.
one other a aspect of its worth-creation initiatives are partnerships with conglomerates and enterprise stakeholders in Indonesia which will assist startups pace up the enlargement of their enterprise. for event, it helps fintech firms work with banks or entry capital they’re going to use for lending.
Li said that ACV usually invests in 10 to 12 firms per 12 months throughout its funds, and that continues regardless of the worldwide slowdown in enterprise capital investing. “At occasions when money is much less difficult, we might try to maneuver simply a little sooner, and at occasions like this, we might try to maneuver simply a little slower, however basically what we’re making an try to do is underwrite for the becoming firms, and so we don’t want to be rushed by the timing of how the market is,” he said.
although valuations throughout all levels have fallen by about 30% to forty%, Li additionally sees upsides on the market ambiance, collectively with inside the customary of entrepreneurs.
“What’s good about such a interval is that entrepreneurs are focused rather extra on extreme quality metrics and product-market match earlier than starting to scale their companies,” he said. “i really feel lats 12 months when capital was simple, most likely numerous firms chasing topline progress had scaled prematurely, and that’s by no means primarily the most interesting use of capital. It’s merely making an try to grab market share and get the following spherical, so i really feel occasions like this are good for every entrepreneurs and buyers alike.”