Temasek's Vertex adds $398m fund for tech investments

A new entity in Vertex Venture Holdings' global network of venture capital (VC) funds has raised US$290 million (S$398 million) for its inaugural fund.

Demand for the Vertex Growth Fund, which focuses on growth-stage technology, surpassed the initial target of US$250 million, it said yesterday.

The new fund is anchored by Vertex Venture Holdings, the Singapore-based VC arm of investment firm Temasek.

There are also secured commitments from other limited partners across the region, including a sovereign wealth fund, institutional investors such as Cathay Life Insurance, corporates and family offices.

Singapore-based Vertex Growth will invest in start-ups globally, focusing on investment opportunities in later stages, especially those emerging from the early-stage portfolio across the Vertex network.

It will put about US$10 million to US$15 million in each start-up, typically in the third and fourth round of funding, compared with US$3 million to US$4 million by affiliate funds in early rounds, said a DealStreetAsia report on Thursday.

The Vertex network has about 200 companies in its early-stage portfolio.

Funds are based in key innovation hubs such as South-east Asia, India, Israel, China and the United States. They have backed start-ups including ride-hailing giant Grab, Waze and Desktop Metal.

A version of this article appeared in the print edition of The Straits Times on September 14, 2019, with the headline 'Temasek's Vertex adds $398m fund for tech investments'. Print Edition | Subscribe