Temasek's Vertex adds new $398.7m fund to back growth-stage tech firms

Headquartered in Singapore, Vertex Growth deploys growth capital to start-ups globally, focusing on investment opportunities in later stages.
Headquartered in Singapore, Vertex Growth deploys growth capital to start-ups globally, focusing on investment opportunities in later stages.PHOTO: VERTEX GROWTH FUND

SINGAPORE - Vertex Growth Fund, the sixth and newest member of Vertex Venture Holdings' global network of venture capital (VC) funds, has raised US$290 million (S$398.7 million) for its inaugural fund.

Demand for the growth-stage technology fund had surpassed the initial target of US$250 million, Vertex Growth said on Friday (Sept 13).

The new fund is anchored by Vertex Venture Holdings, the Singapore-based VC arm of investment firm Temasek Holdings. There are also secured commitments from other limited partners across the pan-Asian region, which include a sovereign wealth fund, institutional investors such as Cathay Life Insurance, corporates across industry verticals, and family offices.

Headquartered in Singapore, Vertex Growth deploys growth capital to start-ups globally, focusing on investment opportunities in later stages - especially those emerging from the early-stage portfolio across the Vertex network.

The new fund will invest about US$10 million to US$15 million per start-up, typically in the third and fourth round of funding, compared to US$3 million to US$4 million by affiliate funds in early rounds, according to a DealStreetAsia report on Thursday.

Said Yeh I-Hau, chairman of Taiwanese integrated-circuit design house Elan Microelectronics, one of Vertex Growth's limited partners: "The strength of the Vertex network allows investors like us to be at the forefront of technological innovation and gain a deeper understanding on future implications."

Tam Hock Chuan, managing director of Vertex Growth, said the firm provides investors with early access to next-generation technologies. "We continue to see healthy interest, particularly from corporates who invest with a view to gain insights on innovation themes that may be relevant to their core businesses," Mr Tam said.

The Vertex network has about 200 companies in its early-stage portfolio. The network funds are based in major innovation hubs such as South-east Asia, India, Israel, China and the US. They have backed start-ups including ride-hailing giant Grab, Waze, Mobike, Twelve, and Desktop Metal.

 
 

With insights into carefully curated deal flows, Vertex Growth can invest in the growth stage of the businesses as they scale, the firm said on Friday.

Prajit Nanu, chief executive officer of cross-border digital payments start-up InstaReM, said: "It is important for us to work with a VC partnership that can support us through our business-building journey, from our early formative stages when Vertex Ventures South-east Asia and India invested in us, and now as we scale with Vertex Growth."

"In addition to the continuity of capital support, we value the domain expertise, strategic perspectives and business leads that the Vertex platform brings," Mr Nanu added.

Correction note: This article has been updated for accuracy.