Major VCs form lobby group to boost Southeast Asia’s startup industry

Photo credit: 401(K).

Some of Southeast Asia’s most prominent and active venture capital firms like Gobi Partners, East Ventures, and Convergence Ventures have formed a lobby group with the goal to promote and develop the venture capital (VC) industry in the region.

The new group, called ASEAN Venture Council, was started by Indonesian venture capital association Amvesindo and its pendant in Singapore, SVCA. VC associations in Malaysia and Thailand are expected to join at a later date.

Crowdfunding has the potential to disrupt venture capital.

Southeast Asia’s startup industry is booming right now, with US$799 million pumped into young tech firms across the region in the first half of the year. The startups often depend on cash from VC firms to fuel growth and expansion.

One aim of the lobby group, which was announced today at a fintech conference in Jakarta, is to learn from each other’s experience and to lobby respective governments for favorable conditions, such as when it comes to taxation.

“One thing we can learn from Singapore is how to create regulations that clearly differentiate between accredited and retail investors,” explained Amvesindo chairman Jefri Sirait. “In Indonesia we do not have this distinction yet.”

Ku Kay Mok of Gobi Partners, who represents SVCA, said that crowdfunding was another area the council hopes to address and find common ground. “Crowdfunding has the potential to disrupt venture capital,” he said. “It needs to be monitored.”

The Council will help each country’s associations stay up to date with regulatory issues. It’ll organize events and share best practices across the region. It will even help VC firms collaborate more closely on deal flow, Kay Mok said.

See: Southeast Asia’s top 36 startup investment firms