East Ventures Accumulates Eighth Round Funding for New Startups
East Ventures announced the first closing of a fundraiser for its latest seed fund round. The most active stage venture capital company in Southeast Asia is targeting USD 88 million in the eighth managed fund. This funding will be focused on the startup that emerged or developed after the Covid-19 Pandemic.
Co-founder and Managing Partner at East Ventures Willson Weather said the Covid-19 pandemic provided an opportunity for new generations to think about new problems and find efficient solutions based on technology.
Indeed, the Covid-19 pandemic has hit the global business and economic performance. He changed the habits of most people throughout the world. Therefore, business people must think hard about a variety of things, ranging from considering the business model to adapting to the need to reduce physical contact in everyday life.
As a result, consumers and business people are driven to accelerate digital transformation, which generally takes years.
“We remain optimistic about the future of the digital economy in Southeast Asia. The current situation actually proves the main hypothesis of East Ventures, that great founders always find a way to develop their companies, even in the face of a crisis. Great entrepreneurs will not be timeless,” said Willson is quoted from his official statement.
A Response to Covid-19 Pandemic
Willson also said East Ventures had acted quickly to work with founders in finding ways to overcome the crisis caused by the Covid-19 outbreak.
“We are aware that the majority of company CEOs in our portfolio have never been through a crisis. Therefore, we immediately conduct a business performance analysis with the founders and CEOs of the companies in our portfolio. The goal is not to determine the detailed steps they must take, but understand the impact of the crisis. towards each company,” Willson explained.
Willson also advised companies in the East Ventures portfolio to “save cash, only change their core business if it is really needed, consider carefully before pivoting.”
The most important thing, according to Wilson, the founders are required to be able to be assertive in making decisions. “Through this, we want to show the importance of leadership,” said Willson stressed.
Involve Global and Regional Financial Institutions
“We are enthusiastic to continue our partnership with East Ventures. East Ventures’ position in Southeast Asia is very strategic to assist entrepreneurs in exploring their best potential,” Pavilion Capital CEO Tow Heng Tan said.
Similarly, Partners at Adams Street Partners Sunil Mishra also said they were happy to participate in this new funding round.
“Their track record, reputation in the market, and their ability to work together and guide young founders are very impressive. We hope that their investment will continue to generate good returns,” said Sunil Mishra.
East Ventures’ eighth managed fund remains open to all sectors (sector-agnostic) because the company believes quality founders exist in all types of industries. The company intentionally maintains the number of funds raised under USD 100 million to maintain the focus of funding to the early-stage companies.
East Ventures has the primary goal of being the best asset class for its investors (limited partners). The amount of funding is considered to accelerate the company to achieve this target.
Willson also assessed that East Ventures took quick action to work with the founders in finding a way through the Covid-19 pandemic crisis. He realized that the majority of company CEOs in the company’s portfolio had never been through a crisis.
Therefore, East Ventures immediately analyzes business performance with the founders and CEOs of the companies that form the portfolio. The aim is not to determine the detailed steps that must be taken, but to understand the impact of the crisis on each company.
“Armed with this knowledge, we can work with the founders and management of each company, case by case, to find realistic strategies,” he said.