Genesis Alternative Ventures, a private lender specializing in venture and growth-stage companies, has successfully closed its second debt fund at $125 million, slightly below its original target. This comes as global investors continue to show caution towards Southeast Asia’s startup ecosystem amid challenging market conditions.
The Singapore-based firm had initially aimed to raise between $120 million and $180 million, but after more than two years of fundraising, it secured new backers including Japan’s Mizuho Bank and Israel’s OurCrowd Ltd. The new fund will be used to provide financing to emerging companies across Southeast Asia.
The venture lending market, which involves offering loans to startups rather than equity investments, has seen increased interest as companies seek alternative funding sources amidst a tough economic climate. The downturn in tech valuations and a sluggish market for initial public offerings (IPOs) have compounded the difficulties for venture firms trying to raise capital. Despite these challenges, Southeast Asia presents its own set of hurdles, with many startups still in the red and deemed high-risk by investors.
“It’s never easy to raise funds, and it’s been more difficult in this environment,” said Jeremy Loh, co-founder and managing partner of Genesis, in an interview. “This is a period of time where founders must be able to demonstrate that they can grow at a sustainable pace without relying on too much equity.”
The new fund has already provided over $20 million in loans to nine startups, including Aonic, Eezee Pte, and Akulaku Inc. Genesis’s lending focus is on startups that typically do not qualify for traditional bank loans due to lack of collateral or profitability. The firm’s first $90 million fund has supported 25 startups from Series A to pre-IPO stages in Southeast Asia, with notable portfolio companies including Jakarta-based Akulaku and the buy-now-pay-later startup Pace.

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