Southeast Asia’s VC alliances, explained

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Hello reader,

When I was in school and looking for part-time jobs during the holidays, it was pretty common to see job postings with the phrase “join with your friends” appended to them, especially for places that were looking to hire temporary staff en masse. I’ll admit, it was pretty fun to be working with friends, even if we were just doing boring things like packing goody bags for an event.

Much like how I took up jobs along with my buddies, VC firms also invest alongside other investors whose interests align with theirs. There are many reasons why a firm would choose to co-invest with several others – or to not invest with someone at all – but what’s interesting is uncovering the tangled web of these connections, which is what my colleague Tian Wen did.

Today we look at,

• The state of VC alliances in Southeast Asia in 2021
• A startup that’s trying to make the morning after a night out less painful
• Other newsy highlights such as what the future could hold for Grab and Cars24’s entry into Southeast Asia

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Image credit: Timmy Loen

It’s no secret that VCs invest with peers all the time. What’s interesting, though, is taking a closer look at these connections and exploring the networks that these firms have built. Here’s a look at the state of VC alliances in Southeast Asia in 2021.

• At the top of the leaderboard: There’s been a significant reshuffling over the past year in the top 20 most active VCs in Southeast Asia in terms of deals made, although the top five most active investors have mostly kept their previous positions.

• Expanding the circle: According to our analysis, the top five VC firms appear to have become less agnostic over the past year. In this timeframe, VCs have opened their doors to more co-investors and appear to be deepening relationships with new ones.

• Welcome to the gang: These new co-investors are a varied bunch, ranging from institutional investors to government-linked firms. However, co-investments in Southeast Asia are coming from an increasingly diverse crowd, such as Chinese corporations and VC firms like Kuaishou, ZhenFund, and Boyu Capital, as well as startups-turned-investors like Traveloka and Ovo.

Read more: The hidden alliances between SEA’s VCs, uncovered (2021 edition)

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