Philippine fund to invest $40m in early, growth-​stage startups across SEA

Philippine-based Gentree Fund said it has set aside an initial US$40 million to look for investments into early-​stage companies across Southeast Asia that plan to tap into the Philippines market.

Gentree Fund vice president Mark Sng / Photo credit: Gentree Fund

The sector agnostic fund, which has been operating under the media radar since last year, is a venture vehicle for the Sy Family Office, the family behind local retail, banking, and property development titan SM Group. Gentree said that the US$40 million amount is more of a general guidance as an evergreen fund.

The newly launched fund will focus on early and growth stage deals in the Philippines, allowing portfolio firms to collaborate commercially with Sy Family’s SM Investment Corporation on an arms-length basis. It will also invest in series B to pre-IPO startups across Southeast Asia, but only on a selective basis.

It will be looking to make roughly 12 to 14 direct portfolio investments, Gentree Fund’s vice president Mark Sng told Tech In Asia. “Gentree has a sweet spot initial ticket size of between US$1 million to US$3 million, with a maximum allocation per portfolio company of US$4 million,” he added.

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Prior to Gentree, Sng helmed the Singapore office launch for Gojek-backed venture fund Go-Ventures. The team is further supported by associate Zack Chng, previously from the corporate finance division in Standard Chartered Bank, and analyst Jeremy Young.

To date, Gentree has deployed US$12 million into its current portfolio firms. This includes its participation in the US$2.1 million series A equity financing round of Filipino property and fintech platform Aqwire.

Gentree’s other investments so far include those in food and beverage business management firm Mosaic Solutions, live-streaming platform Kumu, alternative banking firm Nextpay, mother and child products retailer Edamama, and Indian sports platform Mobile Premier League.

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“With over 70 million internet user in the Philippines, communication, entertainment, and skills-transformation have moved online and become key to daily routines. We hope to support their continued growth and drive greater choice for consumers and businesses in the Philippines and Southeast Asia,” Sng remarked.