Netherlands-based investment firm Orient Growth Ventures has successfully closed its second fund, Orient Growth Fund II, amassing $90 million in commitments. This fund is a major increase from its inaugural $25-million fund raised in 2020. The firm has shown an escalating focus on backing early-stage venture capital managers across Southeast Asia and India.
With Orient Growth Fund II, the firm aims to continue supporting the startup ecosystems in these regions. The VC industry is growing interest in sectors such as electric vehicle infrastructure, climate solutions, and agritech, particularly in the Southeast Asian market.
Since 2019, Orient Growth Ventures has played a crucial role in connecting European investors with the vibrant venture capital landscape of India and Southeast Asia. The firm has supported innovative startups in the region, having backed over 20 funds from prominent players such as TNB Aura, Jungle Ventures, Blume Ventures, AC Ventures, Ascend Vietnam Ventures, and Foxmont Capital Partners.
With Fund II, Orient Growth Ventures remains steadfast in identifying top-tier venture capital managers in India and Southeast Asia. Rinze Verbeek, Managing Partner of the firm, emphasized that while the first fund had a global investment mandate, the second fund is exclusively dedicated to these two regions, focusing on expanding investments in the Indian market.
The successful fundraising of Orient Growth Fund II is attributed to the strong economic resilience of both India and Southeast Asia, strengthened by favorable demographic and socioeconomic factors, along with rapidly increasing digital adoption rates. The fund has garnered support from a diverse range of investors, including European high-net-worth individuals, tech entrepreneurs, and family offices across Europe and Singapore, both existing and new limited partners.
Ricardo Bun, Managing Partner at Orient Growth Ventures, highlighted the confidence among investors in the potential of Indian and Southeast Asian markets and the promising opportunities they offer.
The firm’s commitment to the region was evident with the launch of its first fund-of-funds dedicated to these markets in 2019, followed by the initiation of its second fund in early 2022, initially targeting $100 million.
Despite the challenges highlighted by data from Venture Intelligence, indicating a notable decline in overall funding for Indian startups in 2023, Orient Growth Ventures remains optimistic about the growth prospects, particularly for early-stage startups, as evidenced by the successful fundraising efforts and the performance of its first fund.
Verbeek, emphasizing a cautious yet optimistic outlook, noted that selected funds have adopted a prudent approach, prioritizing thoughtful deal-making over speed, resulting in well-constructed portfolios. He expressed particular optimism about post-2021 fund vintages, anticipating potential pressure in later-stage funding rounds but also highlighting emerging opportunities in early-stage investments. Verbeek reiterated Orient Growth Ventures’ enduring confidence in the long-term prospects of its target markets.
Leveraging the expertise and networks of local top-tier venture capital partners, Orient Growth Ventures aims to provide European investors with premium access to India and Southeast Asia’s vibrant venture capital ecosystems.