F&B-focused Velocity Ventures announces first close of new fund

Singapore’s Velocity Ventures, a travel- and hospitality-focused VC firm, announced the first close of its Velocity Hospitality and Travel Fund I, which aims to attract US$20 million in commitment.

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With the first close, Velocity said it has raised close to 40% of the target amount. Current investors include unnamed strategic individual investors, family offices, and other institutional capital firms, according to a statement. The fund is continuing to source further capital commitments and is expected to hit its final close at the end of 2021.

The VC firm said Velocity Hospitality and Travel Fund I will have a Covid-19 themed investment mandate, honing in on seed- and early growth-stage hospitality and travel startups in Southeast Asia.

According to Velocity, it will leverage its network of key influencers and industry partners to secure proprietary deal flow and support portfolio companies with strategic expertise. Its current corporate partners include Etihad Airways, Goldbell Group, Global Hotel Alliance, and RB Capital, among others.

Velocity said the fund has already made two investments – one in Hong Kong-based F&B software-as-a-service platform Aigens and another in Singapore-based hotel revenue and distribution management platform Zuzu Hospitality.

“In such unprecedented times, we believe the pandemic will deliver a period of unparalleled innovation and opportunity in the hospitality and travel space as the industry transforms and adapts post Covid-19,” shared Velocity Ventures founder and managing partner Nicholas Cocks.