VC investments in ASEAN have surpassed 2016 totals in Q3 2017, with a massive amount concentrated in fewer deals. Fundamentals are in place for ASEAN's digital economy to grow rapidly, with a large population, one-third under 30, and internet penetration growing. Both Chinese and Japanese tech companies and corporates have increasingly invested in ASEAN startups. Regional and foreign investors have also increased interest, with several VC funds raising $200+ million for Southeast Asia. However, the majority of funding still goes to early-stage deals, with an emerging gap in growth-stage funding. Mobile investments have increased as a percentage of total funding due to smartphones' dominance in ASEAN markets.

1. VC Capital Invested in ASEAN
Cumulative Q3 2017 Figures has Surpassed Total Investments in 2016 -
Massive Sum of Capital Concentrated in Fewer Financings
Source: Pitchbook
354
1,200 1,140
1,450
2,440
3,890
2012 2013 2014 2015 2016 Q3 2017
Deal Count 188
Capital Invested
(US$ M)
292 397 515 465 228
59%
51%

2. The ASEAN Digital Revolution
Fundamentals are in Place for ASEAN to Leapfrog to the Forefront of
the Fast Moving Global Digital Economy
ü Robust economy generating GDP of
US$2.5 trillion and growing at 6%
per year
ü Huge population of more than 600
million people, with 40% under 30
years of age
ü Sizeable internet economy of
approximately US$200 billion with
rapidly growing digital footprint:
q Internet penetration: 53%
q Mobile penetration: 133%
q Social media penetration: 47%

3. Emerging Proof Points - The proxy war in ASEAN
Growing Interest from Northeast Asian Tech Giants & Corporates
Recent investments of Chinese tech giants into ASEAN Recent investments of Japanese corporates into ASEAN
Acquired for
US$1 B in 2016
Led US$1.1 B
round in 2017
Led US$1.2 B
round in 2017
Led US$2.5 B
round in 2017
Multimillion-
dollar” in 2016
Led round in
2016
Acquired in
2017
In talks to Invest
millions
Japanese
Financial
Conglomerate

4. Increased Interest from Regional & Foreign Investors
Closed its third investment fund for Southeast Asia and India with
a total of US$210 million for investment.
Publicly-named LPs backing it include Thailand’s Kasikorn Bank —
via its US$30 million Beacon fund — and Taiwan-based Cathay Life
Insurance.
13 October 2017
Closed its fifth fund with almost US$230
million in pledged capital – one of the
largest VC funds yet to be raised and
operated out of Southeast Asia.
10 October 2017
10 October 2017
US$50 million first closing of the Meranti Asean Growth Fund
with a target size of US$200 million. Initial limited partners are
Mavcap, GS Shop and PT Mahanusa Capital.
Recently closed a US$66 million investment
fund for Southeast Asia. The fund closed
above its original target of US$50 million
with backing from IFC
17 August 2017

5. Investments by VC Funding Stage
Early Stage Investments Still Dominate Funding in the Region,
Emergence of a Growth Stage Funding Gap
Source: CB Insights, Pitchbook
92%
86% 86% 87% 87%
80%
7% 14% 13% 13% 12%
19%
1% 1% 1% 0% 1% 1%
2012 2013 2014 2015 2016 Q3 2017
Early Stage Growth Stage Late Stage
% breakdown of funding stage by deal count
60
55
65
86
95 95
46
77
69
76
42
36
42
3
8
4 9
3 5 14 9
11
4 9
3 6
6 7
4
11 13 14 14
10
8
10 8
15
6
2014 Q1 2015 Q1 2016 Q1 2017 Q3
QoQ deal count by funding stage
Seed + Series A Series B and up Acquisitions / IPOs
Funding Gap

6. What Verticals are Attracting Funding in ASEAN?
Shift in Trends Post 2013, Increased Focus in Mobile Investments
Contrasting the Fall in the E-Commerce Space
Source: Pitchbook
% of total funding
0%
10%
20%
30%
40%
50%
60%
70%
80%
2012 2013 2014 2015 2016 Q3 2017
E-Commerce Fin Tech HealthTech Mobile SaaS Others
What’s Driving The Shift
towards Mobile Investments?
ü The mobile internet is the
internet in ASEAN
ü Smartphones are King, even
in low income markets
Logistics MediaGaming

7. Thank You
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