TNB Aura launches COVID-19 special situations fund

AVCJ understands that the fund will be a sidecar-style vehicle within TNB Aura’s second flagship fund, which is expected to see a formal launch in the near term with a target of $100 million. TNB Aura was set up in 2018, when Singapore’s TNB Ventures and Australia’s Aura Group jointly raised about $27 million for a debut fund. 

The special situations fund, which doesn't have a target or a hard cap, will be implemented with a flexible timeline due to the uncertainty around how long market disruptions related to COVID-19 will threaten normal business activities. The fund and its portfolio companies will be rolled into the larger Fund II upon a general resolution of the pandemic.  

The fund will target technology start-ups facing curtailed operations and near-term cash flows issues but considered undervalued due to their long-term potential. “With the market having previously witnessed a glut of overvalued deals, and today, a current value dislocation, TNB Aura is targeting value deals of high quality for this new fund," Vicknesh Pillay, a co-founder at TNB Aura (pictured left), said in a statement. 

The first investments are expected to be made within 1-2 months, targeting Southeast Asia primarily, and Australia opportunistically. Each portfolio company will receive about $2 million via a range of funding structures, including convertible notes and direct equity but not debt. 

This is hoped to facilitate extended runways of 12-18 months that will in turn help companies refocus on achieving their previously targeted milestones. TNB Aura will also provide advisory support to portfolio companies on managing cash and talent optimization during volatility.  

“We are investing for the long term, and seek to provide an encouraging narrative to the ecosystem at this critical time,” Charles Wong, a co-founder TNB Aura (pictured right), added. “Ultimately, we believe in strong fundamentals, and in the ability of selected companies to both weather the current storm and come out stronger on the other side.”

TNB Aura typically makes deployments of $1-5 million in Series A or Series B technology companies, with focus areas including advanced manufacturing, the internet-of-things, robotics, and autonomous systems. Recent activity includes participation in a $13.6 million round for Singapore’s Zenyum, a 3D-printing manufacturer, alongside Sequoia Capital India. 

The firm has historically maintained strong government ties. Its debut fund is a co-investment partner of Enterprise Singapore, a Ministry of Trade organization that promotes small and medium-sized enterprises. This collaboration is part of the Startup SG Equity co-investment scheme, which facilitates investments from government entities SG Innovate and Seeds Capital.

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• Topics
• Southeast Asia
• Fundraising
• Technology
• Credit/Special Situations
• Singapore
• Venture
• coronavirus
• covid-19