Headline Asia Secures $145M Fund for APAC Investments
▼ Summary
– Securing startup funding in Asia has become harder due to economic uncertainties and geopolitical challenges, leading to fewer VC funds closing.
– Headline Asia raised $145 million for its fifth fund (Headline Asia Fund V) to invest in tech startups across Asia-Pacific, focusing on digital transformation and cross-border operations.
– The fund targets early-stage startups (seed to Series A) in sectors like e-commerce, logistics, fintech, IP, and AI, with check sizes ranging from $1 million to $5 million.
– Backers of Headline Asia’s fifth fund include public and private entities like Japan Investment Corporation (JIC) and the National Development Fund of Taiwan (NDF).
– Headline Asia is particularly interested in Japanese startups expanding globally, as well as Southeast Asian and North Asian startups with international potential.
Navigating the current economic climate, venture capital firm Headline Asia has successfully closed its fifth fund at $145 million to back tech startups across the Asia-Pacific region. Despite market challenges like rising interest rates and cautious investor sentiment, the firm remains bullish on early-stage opportunities in digital transformation and cross-border ventures.
Headline Asia Fund V will focus on seed to Series A investments, targeting sectors such as e-commerce, logistics, fintech, intellectual property, and AI. The fund has already deployed capital into 17 startups, including Japan’s ride-sharing platform Newmo, Singapore-based revenue financing provider Jenfi, and NFC tech company Pi-xcels. Geographically, the firm prioritizes Japan, Taiwan, and Southeast Asia, with selective deals in South Korea.
Backed by prominent investors like Japan Investment Corporation (JIC), Taiwan’s National Development Fund (NDF), and Korea Venture Investment Corporation (KVIC), the fund underscores confidence in Asia’s startup ecosystem. Akio Tanaka, Headline Asia’s co-founder, emphasized that early-stage valuations still offer the most significant returns, particularly as later-stage deals face compressed valuations and liquidity constraints.
Japan presents a particularly compelling opportunity, according to Tanaka. Historically, many Japanese startups prioritized local markets with smaller IPOs, but Headline sees growing potential in founders expanding globally—whether from Japan, Southeast Asia, or North Asia.
Headline Asia operates as part of a broader global network with offices in the U.S., Europe, and Latin America, managing approximately $4 billion in assets worldwide. Since its 2008 launch, the firm has invested in over 100 startups and now oversees $420 million across its five regional funds.
This latest fundraise follows other notable Asia-focused VC activity, including Antler’s $72 million Southeast Asia fund and MindWorks Capital’s $220 million Pan-Asia fund. Indonesia’s Intudo Ventures also recently secured $125 million, signaling continued investor appetite for high-potential startups despite broader market headwinds.
By targeting overlooked high-growth opportunities, Headline Asia aims to differentiate itself from risk-averse investors, betting on the next wave of tech innovation emerging from the region.
(Source: TechCrunch)
