In the first half of 2023, East Ventures deployed a fund of US$56.6 million to seed and growth-stage startups.
Heaptalk, Jakarta — The global economy remains uncertain due to high inflation globally, and geopolitical conditions are claimed to impact the funding slowdown around the startup industry.
According to the latest report from TechInAsia, in Southeast Asia, the number of equity funding deals fell to 427 deals per September 2023, dropping 58.1% from 1,019 funding rounds in 2022. The report also revealed that the total proceeds will decrease by 65.75% to US$6.2 billion by the end of this year.
Nevertheless, amidst the current turmoil from multiple aspects, East Ventures continues to be prudent and bullish in injecting fresh funds into the Southeast Asian market, particularly Indonesia.
The Co-founder and Managing Partner of East Ventures, Willson Cuaca, stated, “We never stop investing. We do not care if it is a sunny or rainy day. We will still invest in good founders and stop investing if the good founders no longer exist to be invested. We have witnessed an improvement in founders’ qualities over time, which can build a successful business more quickly,”
In the first half of 2023, the company deployed a fund of US$56.6 million to seed and growth-stage startups, which was injected into startups in several industries, including manufacturing, fintech, cybersecurity, healthcare, logistics, Edutech, climate tech, food, and beverage.
Further, venture capital East Ventures also closed its Growth Plus fund, raising US$250 million, which accumulated the firm’s total of US$835 million fundraising over the past year. The firm claimed the fund is a series of seed, growth, and growth plus funds, which is also a testament of trust to East Ventures’ limited partners towards its investment strategy.
“We still have a dry powder to support our portfolio companies, and we are prudent in facing this second crisis; the first crisis is the COVID-19 pandemic, and the second crisis in this inflationary conditions,” added Willson.
East Ventures’ way to bolster its portfolios
The firm implements diverse strategies for each startup stage to bolster its portfolios amidst the current funding crisis. As an early strategy, East Ventures emphasizes the economic aspect of its growth portfolios by ensuring that each transaction is profitable to retain sustainable growth.
As a result, the strategic positioning ensures the growth of East Ventures’ portfolio companies. Currently, 40% of East Ventures’ growth portfolio companies have positive EBITDA, while other portfolios showcase a clear path to profitability and have a runway beyond 2025.
Apart from the economic and demographic factors, this investment company also invests in founders and businesses rooted in Indonesia. Besides, East Ventures has collaborated with over 300 startups and 500 founders along with the rapid digital technology growth. Through the broad and collaborative ecosystem, East Ventures company brings value creations to founders in establishing a product market fit and thriving in their businesses.
“Our investment and initiatives to create more impact and build a sustainable future will not stop here. We constantly collaborate with many stakeholders to forge a productive and healthy Southeast Asia for today, tomorrow, and future generations.” Willson concluded.
