Genesis Alternative Ventures, a Singapore-based private lender specializing in ventures and growth-stage companies, has successfully closed its second debt fund at the lower end of its target range. The firm raised $125 million for the fund, aimed at supporting young companies across Southeast Asia. This figure is at the lower end of the $120 million to $180 million target, reflecting a cautious global investment climate towards the region’s startup sector.
The fund’s closing, which took over two years to finalize, saw participation from new investors including Japan’s Mizuho Bank and Israel’s OurCrowd Ltd.
Venture lending, which involves providing loans to startups, has seen increasing interest as companies seek alternative financing to equity raises. This shift comes amid a challenging global economic outlook that has negatively impacted tech valuations and made it difficult for venture firms to raise capital, particularly in a subdued market for initial public offerings (IPOs). Southeast Asia, in particular, remains a tough environment for both debt and equity fundraising, with many startups in the region considered high-risk due to their lack of profitability.
Jeremy Loh, co-founder and managing partner of Genesis, acknowledged the difficulties of raising funds in the current climate. “It’s never easy to raise funds, and it’s been more difficult in this environment,” Loh said. “This is a period where founders must demonstrate sustainable growth without excessive reliance on equity.”
Notably, more than 80% of the investors in Genesis’s inaugural fund, including Aozora Bank Ltd., Korea Development Bank, and Silverhorn Group, have also invested in the new fund.
The second fund has already deployed over $20 million to nine startups, including Aonic, Eezee Pte, and Akulaku Inc. Genesis focuses on providing debt to startups that are typically ineligible for traditional bank loans due to a lack of collateral or profitability. The firm’s initial $90 million fund has supported 25 startups in Southeast Asia, ranging from Series A to pre-IPO stages. Its portfolio includes notable companies such as Jakarta-based online lender Akulaku and buy-now-pay-later startup Pace.
