Singapore VC firm Quest Ventures hits first close of $50m Asia fund

Singapore-based VC firm Quest Ventures has announced the first close of its new US$50 million fund, anchored by two institutional investors, Pavilion Capital and Kazakhstan sovereign wealth fund QazTech Ventures.

From left: Quest Ventures partners James Tan, Goh Yiping, and Jeffrey Seah / Photo credit: Quest Ventures

Quest Ventures said it plans to look for post-seed and series A opportunities across Southeast Asia and emerging Asia for its Asia Fund II. Already present in Vietnam, the company also plans to expand its footprint to other countries in the region, including Indonesia, Myanmar, and the Philippines.

Although it’s called Asia Fund II, the vehicle is Quest Ventures’ first institutionally backed fund. Its prior fund was invested out of the personal capital of its managing partner James Tan, according to a statement. Some of its notable investments include Carousell, ShopBack, 99.co, Carro, StyleTheory, Glife, and Xfers, among others.

Quest Ventures said that the deal marks QazTech’s first investment in an Asian VC fund as it looks to tap into the increased business activities between Central Asia and Southeast Asia.

According to an earlier report by Kazakh publication Strategy2050, QazTech invested US$10 million into the new fund. Under the terms of the agreement, the fund will be considering startup projects in Kazakhstan and Central Asia in the next three years, the report said.

“This partnership with Quest Ventures and Pavilion Capital will enable Kazakhstani startups to secure important investments, improve competencies, and gain access to global markets,” said Adil Nurgozhin, the chairman of QazTech’s board.

Quest also announced its plans to launch an accelerator in Kazakhstan, aiming to spur the region’s digital economy. The program is set to back founders with disruptive business models that can create new sustainable values for the end customer.

In addition to Pavilion and QazTech, Fund II is also backed by entrepreneurs, C-suite executives, Asian family business founders, family offices, and institutional investors.