SINGAPORE - Venture capital firm Quest Ventures has raised between US$26 million (S$37 million) and US$30 million in the first phase of its second venture fund and is on track to hit its target amount of US$50 million by April next year.

Pavilion Capital, a subsidiary of Singapore state investor Temasek Holdings, and Kazakhstan sovereign wealth fund QazTech Ventures have already invested in the Asia Fund II, said Quest Ventures on Thursday (April 16).

The Asia Fund II will back 40 to 60 start-ups in South-east Asia and emerging Asia markets, with investments of between US$500,000 to US$1 million.

The venture firm said it will continue to back driven founders with disruptive business models that can create sustainable value for customers.

Quest Ventures has previously invested in a range of start-ups, including cashback platform ShopBack, property search portal 99.co and online marketplace operator Carousell.

The firm has also set up an accelerator in Kazakhstan. The aim is to back start-ups in the country and other central Asian economies and in turn help the region diversify from its traditional strengths in the oil and gas industries.

The accelerator aims to boost economic development between Central Asia and South-east Asia as well, the venture firm noted.

Quest Ventures said the accelerator has started operations via video-conferencing due to Covid-19 travel restrictions and hopes to set up the physical office in July or August.

Quest Ventures managing partner James Tan said: "As the digital economy matures across the world, the venture capital industry in Asia is now poised to play a mainstream role to bring the public and private markets closer."

QazTech Ventures chairman Adil Nurgozhin noted: "This partnership with Quest Ventures and Pavilion Capital will enable Kazakhstani start-ups to secure important investments, improve competencies and gain access to global markets."

It is an important step to bringing together the innovative ecosystems of South-east Asia and Central Asia, he added.