Genesis Alternative Ventures Closes Second Debt Fund with $125 Million Commitment

Genesis Alternative Ventures, a Singapore-based private lender focused on venture and growth-stage firms, has finalized its second debt fund with commitments totaling $125 million. This sum falls within the lower end of its targeted range, which was between $120 million and $180 million.

The new fund has received backing from returning investors, including Mizuho Leasing, Sassoon Investment Corporation, Silverhorn, Aozora Bank, and Korea Development Bank. It also drew new investment from Japan’s Mizuho Bank and Israel’s OurCrowd Ltd. Having taken more than two years to complete, this fund is designed to provide support to emerging companies throughout Southeast Asia.

This fund took over two years to close and includes new investors like Japan’s Mizuho Bank and Israel’s OurCrowd. The venture debt market is gaining traction as start-ups increasingly seek debt financing instead of equity amid a challenging economic climate that has depressed tech valuations and IPO markets.

The firm has also partnered with Indonesia’s digital bank, Superbank, to provide up to $40 million in venture debt to promising tech start-ups in Indonesia. Stakeholders, including Emtek, Grab, Singtel, and KakaoBank, support this collaboration. In addition, Genesis has welcomed Philip Yeo, former Chairman of Singapore’s Economic Development Board, to its Advisory Board, bringing valuable expertise to guide its growth.

According to Jeremy Loh, Co-Founder and Managing Partner of Genesis, Fund II has already deployed over $26 million in venture loans to promising start-ups across Southeast Asia, including Singapore, Indonesia, Malaysia, and the Philippines. He noted that the current market shift towards leaner, profitable start-ups aligns with Genesis’ strategy, leading to its first successful warrant exit.

Mizuho Bank’s Yasuhiro Kubota expressed confidence in the partnership with Genesis, highlighting the exciting opportunities in Southeast Asia’s start-up ecosystem. He said that the collaboration would accelerate the growth of start-ups by providing essential capital, industry networks, and expertise.

More than 80% of the investors from Genesis’ first fund, including Aozora Bank, Korea Development Bank, and Silverhorn Group, have reinvested in the latest $125 million fund. The second fund has already allocated over $20 million to nine start-ups, such as Aonic, Eezee, and Akulaku. These ventures, which are revenue-generating but lack traditional collateral or profitability, benefit from Genesis’ venture debt, a key alternative to equity financing.

Genesis primarily provides debt to start-ups backed by venture capital that are not eligible for conventional bank loans due to their lack of collateral or profitability. The firm’s first $90 million fund financed 25 start-ups from Series A to pre-IPO stages in Southeast Asia, including notable names like Akulaku and Pace. The approach helps companies build creditworthiness while avoiding excessive equity dilution.

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