Summary:
Headline Asia closes $145 million fund to invest in tech startups across Asia-Pacific
Focus on early-stage startups (seed to Series A) in e-commerce, logistics, fintech, IP, and AI
Backed by public and private entities including JIC, NDF, and KVIC
Already invested in 17 companies, including Newmo, Jenfi, and Pi-xcels
Japan seen as a key market with growing global ambitions among startups
Headline Asia, a Tokyo- and Taipei-based venture capital firm, has successfully closed its Headline Asia Fund V at $145 million, marking one of its largest funds to date. This fund is set to invest in tech startups across the Asia-Pacific region, focusing on Japan, Taiwan, and Southeast Asia, with selective investments in South Korea. The fund targets early-stage startups, from seed to Series A, with check sizes ranging from $1 million to $5 million, in sectors like e-commerce, logistics, fintech, IP, and AI.
Funding Landscape in Asia-Pacific
Despite the current economic uncertainties and geopolitical challenges leading to a tightened funding environment, Headline Asia's latest fund signifies a strong belief in the potential of early-stage startups in the region. Akio Tanaka, a co-founder and partner at Headline Asia, describes the VC market as going through a "cyclical winter", characterized by high interest rates and cautious LP sentiment. Yet, Headline Asia sees this as an opportunity to invest in high-growth, high-risk tech startups that others might shy away from.
Investment Focus and Portfolio
The fund has already invested in 17 companies, including:
- Newmo: A Japanese taxi and ride-sharing startup.
- Jenfi: A Singapore-based company providing revenue-based financing for digital businesses.
- Pi-xcels: A Tokyo- and Singapore-based startup delivering NFC-enabled tech for merchants.
Backers and Global Network
Backers of the fund include Japan Investment Corporation (JIC), the National Development Fund of Taiwan (NDF), and Korea Venture Investment Corporation (KVIC). Headline Asia is part of the Headline global network, with regional offices in the U.S., Europe, and Latin America, managing approximately $4 billion in assets.
Opportunities in Japan
Tanaka highlights Japan as a particularly exciting market, noting a shift from local-focused startups to those with global ambitions. This aligns with Headline Asia's interest in supporting Asian startups going global, whether they're from Japan, Southeast Asia, or North Asia.
Recent VC Fundraises in Asia
Headline Asia's fund closure follows other significant fundraises in the region, such as Antler's $72 million Southeast Asia fund and MindWorks Capital's $220 million Pan-Asia fund.
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