Granite Asia’s Post

🌏 Southeast Asian startups shouldn’t have to cross oceans for capital. A recent piece from Jenny Lee and Yao Loong Ng in Fortune discusses the challenges faced by regional companies in accessing international capital markets. Despite regional dominance, many of our brightest companies struggle to gain traction in international capital markets. Yet, Southeast Asia is brimming with potential and high savings rates. The region needs a more integrated, regional market where companies can raise funds closer to home, and investors can seamlessly access opportunities across borders. This is crucial as global markets turn inward, potentially leaving emerging markets behind in the funding race. Liquidity begets liquidity. Simple but not easy. Initiatives like the collaboration between the Stock Exchange of Thailand and SGX to enable cross-border access are a step in the right direction, but more needs to be done. By harnessing regional savings and supporting active asset managers with a deep understanding of local markets, we can create a vibrant and resilient funding environment for Southeast Asia’s future unicorns.🌱 https://lnkd.in/gsiedfnN #SoutheastAsia #Innovation #CapitalMarkets #RegionalGrowth #GraniteAsia #InvestingInTheFuture #EmpoweringStartups

Enterprise Singapore’s CEO met with Meridian Capital Asia’s Global Partner 🤝 December 8, 2023, Mr Chuan Teck Lee, CEO of Enterprise Singapore, met with representatives of #Chinese venture capital firms in Beijing. Meridian Capital Asia’s Global Partner, Jonathan Zhun Qiu, attended the meeting. Jonathan Qiu shared information about our Singaporean heritage and continuous efforts in supporting technological innovation with Mr Chuan Teck Lee and his delegation. Founded in #Singapore in 2008, Meridian’s Fund I was denominated in Singapore dollars and was the first private equity fund supported by the Singapore Economic Development Board (EDB)’s equity programs that has a foreign founder. Since then, we have grown to manage 9 funds with over $1.5 billion in AUM. We primarily focus on the #DeepTech sector and early-stage (series A and B) investments. And we are usually the lead investor in deals. Till today, we have invested in over 260 innovative companies, including BOSS Zhipin (BZ.O), Weimob Inc. (2013. HK), Biren Technology, Origin Quantum, Qiqitong, Yelink Technology, and Hefu Noodles. Over the past 15 years, we have always taken #Digitalization as our prime investment mandate and invested in technological advances. We will continue to focus on #AdvancedManufacturing, #RenewableEnergy, #NewMaterials, #ArtificialIntelligence, #AgriculturalTechnology, as well as frontier tech areas such as #SpaceTechnology, #QuantumComputing, #NuclearFusion, etc. Jonathan Qiu also talked about Meridian Capital Asia’s future global technology investment expansions in #SoutheastAsia with #Singapore as a base, and other regions around the globe. Mr Chuan Teck Lee expressed his recognition of Meridian Capital Asia’s vision. Then, Jonathan Qiu shared what he learned from participating in Singapore Week of Innovation and Technology (SWITCH) in November 2023. Lastly, they discussed the opportunities for #Chinese companies to go overseas into #SoutheastAsia. They also exchanged views on the trends and hot spots in the technology venture capital markets of both #Singapore and #China. Meridian Capital Asia is excited about further supporting growth and innovation in #Singapore and looks forward to collaborating further with potential regional partners. 🙌 #AsiaPacific #VentureCapital #PrivateEquity #Entrepreneurship #TechnologicalInnovation

This is a great article about what has happened to the Chinese venture capital market in the past 5 years-- a massive collapse in RMB denominated funds, and a significant decline in USD funds (although those firms are now all in the US looking for start-ups to back. Chinese state owned enterprises are rising as a share of the economy, reversing decades of entrepreneurial increase. This is quite bad for China h/t Camilo Botero Gaviria for sending this my way https://lnkd.in/esTQB9vB Good reporting by The Financial Times' Eleanor Olcott and Xueqiao Wang

#Singapore-based companies have made a strong showing in an inaugural list of #Asean’s 30 top tech start-ups, accounting for 21 of them. The NextGen Tech 30 list, released on Sept 24 by tech venture-capital firm Granite Asia, includes patent database Patsnap, fintech firms ShopBack and Aspire, and cyber-security firm Ensign Infosecurity. The remaining nine start-ups are based in locations such as #China, #HongKong, #Vietnam, #Indonesia and the #US. Many of those named on the list operate in industries such as digital finance, logistics automation and clean energy. The list, compiled by Granite Asia, is a collaboration involving government and private organisations, including Temasek-backed venture-capital firm 65 Equity Partners, the SGX Group and private equity firms KKR and Northstar Group. Other partners are DBS Bank, the investment arm of the Singapore Economic Development Board (EDB), the IMDA and the Singapore Business Federation

China leads the way in venture capital growth? 🇨🇳🏙📈 As of April 2024, China dominates the list of the fastest-growing venture capital cities in the world, according to Pitchbook's VC Ecosystem Rankings. The growth score is determined by the deal, exit, and fundraising activity in the past 6 years. More below. 🏙 Hefei takes the number one spot with the highest growth score at 86.5. 🏙 Other Chinese cities such as Wuxi, Chengdu and Nanjing take the top 10 cities with all getting growth scores above 50. 🏙 Other Asian cities such as Tokyo and Singapore also made it on the list. Tokyo ranked third globally in fundraising value, raising $179.6 billion in the last six years. So why exactly is Hefei on top? ✔️ The city's success has been attributed to the "Hefei model," which mixes state-owned money with private businesses to grow new industries.’ ✔️ Over the past 20 years, Hefei's GDP has surged by over 2,600%, from 36.9 billion yuan ($5.7 billion) to over 1 trillion yuan ($154 billion). This growth has elevated Hefei to the 20th richest city in China by 2020. ✔️ Strategic emerging industries now make up over half of Hefei's industrial output, which grew by 9.7% YoY in the first 10 months of 2023. This marks the highest growth in nearly 19 months, surpassing the national average. Economic recovery post covid is still slow, many entrepreneurs shy away from big growth sprees to avoid “unnecessary attention and risks”. 🤔👇 What’s your take on China's venture capital growth? _____ hashtag #china hashtag #economy hashtag #venturecapital Insights via Visual Capitalist, KrAsia, China’s State Council

Southeast Asia is not immune to the global VC funding winter with 2024’s first quarter being its lowest for fundraising in five years. Despite this, Southeast’s new economy fundamentals remain strong with the region’s digital economy expected to grow from $72 billion in 2018 to $240 billion by 2025. Australian private and government investment is on the hunt for ASEAN’s next unicorn with several investment programmes being recently launched. Read our latest insight piece for AustCham Singapore to explore what SMEs can do to tap into some of these initiatives > https://lnkd.in/gsP4CNtG   In case you missed it: our second insight series for AustCham Singapore kicked off last week where we broke down the Australian government’s strategy to deepen economic relationships with Southeast Asia. Read it here > https://lnkd.in/grAyhCQb Tala Booker Daniel Fitzpatrick Graham Crouch Siobhan Clavin Sophie Moore Bryn Morgan #businessinsight #southeastasia #australia #SMEs #venturecapitalfunding #investment #crossborder #austcham 

In the wake of the pandemic, shifts in consumer behavior have driven lasting changes in economies worldwide. The #AsiaPacific region boasts a cohort of resilient companies which are evolving to capitalise on evolving consumer preferences. Despite a decline in VC funding, some #startups continue to thrive, leveraging pandemic-driven growth and strategic #adaptation. Funding constraints, particularly acute in Asia, have led to a rise in down rounds, but companies with robust cash reserves enjoy a competitive advantage. In South #Korea, sanitary product manufacturer Aseado has expanded into other sectors post-pandemic; and #Singapore's MaNaDr Mobile Health maintains competitiveness by placing the focus on user experience. Both companies have incorporated emerging #technology like #AI into their manufacturing processes and services. Singapore has emerged as a vibrant startup hub within the continent, second only to Beijing; and #India and the greater Southeast Asia region are also becoming highly attractive. Despite headwinds, sustained investor interest in Asia and a smaller pool of viable companies bode well for those positioned for #growth. Article by June Yoon for the Financial Times. Read more at the link below. Follow Origin Capital Singapore now for more curated insights! https://lnkd.in/gaAW6VfW

🔥 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝟏𝟏.𝟔% 𝐅𝐃𝐈 𝐆𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐅𝐢𝐫𝐬𝐭 𝟗 𝐌𝐨𝐧𝐭𝐡𝐬 𝐨𝐟 𝟐𝟎𝟐𝟒 🚀 In just the first nine months of 2024, Vietnam attracted over $24.78 billion in foreign direct investment, marking an impressive 11.6% year-on-year growth. 🌱 With 2,492 new projects and $13.55 billion in registered capital, the country continues to draw strong global interest. 🏆 Notably, Singapore led the pack, investing nearly $7.35 billion—representing 29.7% of the total FDI, and up 69% from last year! 💡 Vietnam’s proactive efforts to implement investor-friendly policies and attract high-quality investments have been key drivers behind this surge. 🔗 For further insights, please read the full article here: https://bit.ly/4gS4xjA ------------------------------------------------------- 🎯 Seeking more insights and expert advice for your startup's fundraising strategy? Contact Capital JDI today! 🏆 At Capital JDI, we provide ventures with investor access, invaluable fundraising advice, and support through our vast network and expertise. 🚀 Reach out to us today to boost your startup's journey: https://lnkd.in/gEDd-maK #JDI #CapitalJDI #FDI #Vietnam #Startup #investment

A recent Financial Times article highlights the dramatic shift in China's venture capital landscape and its impact on the private sector. Key takeaways: 📉 New company formation has plummeted from 51,302 in 2018 to just 1,202 in 2023. 🏦 State-backed funds now dominate, accounting for ~80% of capital in the market. 🔒 Stricter investment terms, including personal liability for founders, are becoming common. 🌍 Many VC firms are shifting focus overseas as domestic opportunities dwindle. This shift raises important questions about the future of innovation and entrepreneurship in China. One industry insider says, "The whole industry has just died before our eyes. The entrepreneurial spirit is dead." How might they impact global business and innovation? Read the full article: https://lnkd.in/dGt2mQ55

China promotes venture capital development to support innovation China's recent measures to enhance venture capital (VC) development focus on supporting scientific and technological innovation by expanding capital sources, improving exit mechanisms, and optimizing the market environment (see https://lnkd.in/gXQm3ZAc) Key initiatives include encouraging long-term funds, such as insurance funds, to invest in VC, supporting asset managers, and establishing connections between VC and innovative projects. Currently, China has 12,000 "little giants" and 369 unicorns, underscoring its vibrant startup ecosystem. In contrast to China, the US VC market remains robust but faces increased scrutiny over foreign investments, particularly in sensitive tech sectors. In 2023, US VC investments totaled $149 billion, a 40% drop from 2022, reflecting a more cautious approach amid regulatory challenges. European VCs, on the other hand, have seen steady growth, with €40 billion in funding in 2022. However, they are characterized by a more conservative investment approach, focusing on sustainability and digital transformation. Italy's VC market has shown notable growth, with investments reaching €1.17 billion in 2023, despite a 37% decline from 2022. Over the past decade, Italian VC has invested approximately €8 billion, reflecting a 644% growth rate since 2013, surpassing the European average. The Italian government has implemented initiatives, including tax incentives, to foster a favorable investment climate. Chinese VCs typically prefer quicker exits, with fund lifespans averaging three to five years, compared to the ten-plus years in the US and Europe. This preference for rapid returns is driven by cultural expectations and a regulatory environment that complicates long-term investments. Consequently, Chinese VCs often face pressure for rapid growth, impacting long-term company development. Conclusion China's latest VC measures highlight its commitment to fostering innovation and supporting startups. In comparison, the US and European VC markets exhibit different dynamics, influenced by regulatory environments and investment horizons. Understanding these differences can provide valuable insights for investors and entrepreneurs navigating the global VC landscape. #china #venturecapital #privateequity #funds #capitalmarkets #us #europe #italy