Singapore venture debt provider wins US strategic support
Singapore-based venture debt provider Genesis Alternative Ventures has secured an investment of undisclosed size for its debut fund from US-based Capria Ventures.
Genesis was established last year by Jeremy Loh and Martin Tang, both formerly of the venture debt unit at DBS Bank, and Ben Benjamin, an angel investor and non-executive director at OurCrowd Singapore. Its momentum is seen as part of an early acceleration in the adoption of the strategy in Southeast Asia, where less than 5% of total VC funding comes from venture debt, versus a range around 15% in the US.
The latest investment is planned to give Genesis access to Capria’s expertise in impact investing. This would include support with companies involved in areas such as financial inclusion, sustainable food production, small business digitization, gender diversity as they scale across Southeast Asia.
“We are delighted to welcome Capria as a strategic investor at a time where a liquidity gap exists for venture-backed companies looking to raise funds,” Loh said in a statement. “In recent months, Genesis has seen a 30% increase in deal flows from high-quality companies and founders. We are poised to make another five to six investments in the coming months which will double our portfolio size.”
Capria, which specializes in backing private funds and companies in under-invested emerging markets, is making its debut investment in Southeast Asia and venture debt. The firm counts the International Finance Corporation, Ford Foundation, Vulcan Capital, Omidyar Network, and Sorenson Impact Foundation as its underlying investors.
Genesis’ portfolio to date features cybersecurity provider Horangi, IT services platform Lynk Global, and co-working players GoWork and Hmlet. Its other investors include the Sassoon family office and corporates, family offices, and high net worth individuals across Asia, Europe, and the US. Jakarta-based CIMB Niaga committed $10 million last year to Genesis’ operations in Indonesia.
Genesis said the current economic climate represents an opportune moment for venture debt, noting that most Fortune 500 companies were created during a recession or bear market, including many leading technology unicorns. The plan is to finance start-ups at the Series B stage, structuring the loans with a warrant component that converts into an equity stake.
“Major crises lead to a whole range of challenges but they also create investment opportunities. Fleet-footed entrepreneurs are able to tap these opportunities to create meaningful products and services to be accessible during turbulent times,” Benjamin added. “These entrepreneurs have found their Zoom moments and we want to be there to take them to the next stage of growth.”
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