Cisco invests $10M into Monk’s Hill as ‘first’ investment in Southeast Asia

Cisco Investments today announced a modest US$10 million investment into Monk’s Hill Ventures’ innovation fund for startups in Southeast Asia. The fund aims to drive tech innovation across the region by supporting early stage firms specializing in cloud software, internet of things, big data and analytics, as well as mobility and enterprise apps.

The multinational conglomerate says in addition to funding, it will also explore ways of sharing knowledge and go-to-market expertise with Southeast Asian startups. Cisco did not elaborate on how specifically it will execute this strategy, but Saleh M. Haji Munshi, the firm’s president of ASEAN says, “ASEAN continues to be one of the most diverse, fast-moving, and competitive regions in the world […] In addition to attracting multinationals, ASEAN has become a launching pad for new companies; the region now accounts for 38 percent of Asia’s market for initial public offerings.”

Monk’s Hill Ventures has two primary areas of focus for investing in technology companies. First, it backs early stage, and series A and B technology startups operating in Southeast Asia. Second, it invests in international startups looking to enter Southeast Asia.

See: Monk’s Hill Ventures gets funding from Yahoo Japan’s VC firm to give its startups a leg upThe partners of Monk’s Hill Ventures have built several VC-backed startups over the past 20 years, with operating experience in multiple markets across Asia. Peng T. Ong and Kuo-Yi Lim bring strong networks across Asia and the US. Currently, the firm has offices in both Singapore and Jakarta.

Over the last two decades, Cisco Investments has invested in hundreds of companies across different segments, and claims to have helped founders pursue IPOs and acquisitions. It currently has an active portfolio of US$2 billion with nearly 100 direct investments, and also holds limited partner positions in over 35 funds globally. So this naturally begs the question: why did Cisco wait until now to finally make a move in Southeast Asia?

In June, Monk’s Hill announced capital injections from YJ Capital, the corporate venture arm of Yahoo Japan. Similar to this announcement from Cisco, it’s still unclear to what extent startups can truly take advantage of Yahoo Japan’s assets via Monk’s Hill. In July, reports said Monk’s Hill was an US$80 million fund. At the time, reports also speculated Monk’s Hill was looking to increase its fund size to US$100 million if more limited partners were willing to join. It also said Cisco and Temasek had already pledged to come on board with Monk’s Hill.

See: Monk’s Hill Ventures on departure of team: nothing unusual here

While Cisco claims Monk’s Hill is its first investment in ASEAN, the firm is also a backer of the Indian VC Aavishkaar, which set up shop in Bali earlier this year with intent to invest in Indonesian startups.

Pratik Bose, director of corporate development at Cisco in Asia Pacific and Japan says, “The ASEAN region is transforming rapidly through digitalization along with a growing community of local entrepreneurs […] With this investment in Monk’s Hill Ventures, I’m excited by the opportunities this new breed of companies in ASEAN have […]”

He adds that Cisco pledges to expose them to its partners, brands, and customers, therefore helping local tech startups expand their reach.