The hidden alliances between Southeast Asia’s VCs, uncovered

NOTE: The matrix was updated on 26 August 2020, 1:50 PM.

You can view the actual number of co-investments by hovering over a colored square.
Use the drop-down menu to reorder the matrix and explore the data. Best viewed on larger screens.

Built with d3.js. Modified from Mike Bostock’s original Les Misérables Co-occurrence.

Data: Tech in Asia
Infographics: Ivan Tan

This is Part 1 of our series on how VCs co-invest. Read Part 2 here.

It’s no secret that VCs co-invest with peers all the time. But what’s not as apparent are the dynamics behind the scenes: the hidden friendships and alliances between these firms.

In other words, some firms frequently invest together, which signifies a deeper relationship, while some firms tend to avoid each other.

This matrix diagram is like a relationship graph of Southeast Asia’s VCs. It visualizes co-investments in startups in the past two years. Each colored cell represents two VCs that co-invested in the same round; darker cells indicate VCs that co-invested more frequently, while the colors hint at separate “cliques” or groups.

It’s a fascinating look into what can be an opaque world, and as the region’s ecosystem matures, it’s worth taking note of these relationships, as some VCs can be more “cliquish” while others profess to be agnostic.

A startup raising money from a seed investor would have a better chance of raising follow-on money from like-minded funds. Investors entering Southeast Asia for the first time should be aware of whom they are aligning themselves with.

As for the established VCs, this data could eventually help answer an important question. Which approach leads to better performance: having a group of buddies, or staying agnostic?

In this piece, we will examine the ties between a select group of VC firms. We looked at Tech in Asia’s data on Southeast Asia’s funding rounds in the past two years to examine how the region’s most active VCs co-invest. We also spoke to the VCs themselves to get their take on the data.

Who are these VCs friends with?

First off, why do VC firms get in bed with (or avoid) some peers more than others? There are obvious reasons. For one, firms have different geographical and sector focuses.

And then there are the hidden dynamics. “VCs might avoid certain firms that they have a troubled working history with, or they require a minimum target ownership […] or there’s little value-add,” says Justin Hall, a partner at Golden Gate Ventures. “And finally, my favorite [reason]: a clash of egos or personality.”

Finding agnostic VCs

The outliers