By today’s standards, $ 10 million is not much of the capital to invest.However IterationExplains that it is a YC-style accelerator focused exclusively on Southeast Asia, raising $ 10 million from executives from major Silicon Valley companies such as Andreessen Horowitz investor Andrew Chen, Goodwater Capital Chief Achen, and Casal Unis. It states that it did. , Co-founder of Applied Intuition and former COO of Y Combinator, has written checks for early startups over the past 18 months in the region.
It’s easy to understand Iterative’s interest in the region. Iterative co-founder Brian Ma quickly notices that the majority of the 676 million people in Southeast Asia are now Internet users and spend money online. Indeed, according to reports from Google, Temasek Holdings, and Bain & Company. Published early last monthIn the region, 60 million new Internet users have been added since the pandemic began, bringing the total to 440 million. Meanwhile, the Southeast Asian online industry will grow from an estimated $ 174 billion total commodities by the end of this year to $ 360 billion and $ 1 trillion by 2025, primarily driven by growth in e-commerce and food delivery. Is expected. 2030.
As the number of startups in the region increased, it became a so-called unicorn company. This includes the ride hailing app Grab. Just published By merging with a blank check company, and GoTo Formed this year By integrating the ride-hailing service company Go-Jek with the popular online shopping portal Tokopedia (GoTo is Publish (Early 2022) — It’s probably safe to imagine that competition is fierce and iteratives won’t be subject to the same favorable conditions they’ve ever acquired for much longer. (Currently, we’re investing $ 150,000 per startup in exchange for 10% of our business.)
Ma — Co-founded Divvy Homes. DivvyHomes is now $ 2 billion — We are easily aware that the investment scene in Southeast Asia is ready to be rapidly congested and can affect conditions and valuations. But he says that’s okay.
For one thing, Iterative has already invested $ 3.6 million in 26 companies, only a handful of which have already announced significant additional funding, including: Spenmo (It just raised $ 34 million Insight Partners-led round), Coder school, Raised $ 2.6 million Pre-Series A funding led by Monk’s Hill Ventures, and Go to the yarn, Raised $ 2.6 million With seed funding led by Wavemaker Partners. In short, Iterative has already planted a lot of seeds in the amount that one early US company could raise in the first round of funding.
Ma, who founded Iterative with his friend HsuKen, a former chief product officer of Workmate, an on-demand blue-collar dispatch platform in Southeast Asia, seems to want to help the founders of the region. Investor and veteran operator.
In fact, when he first met the founders of the area, some said that more than 30% of their companies were offered $ 150,000 checks. .. .. many. (Part of Iterative’s promise is not only access to both Ma and Ken, but also access to a wider network of founders and investors, and a kind of funding boot camp, so the founders pitch. I know how to do it and the agreement not to strike.)
Meanwhile, the timing of the iterations seems to be foreseen.Local funding Double down Commitment to larger funds such as Jungle Ventures and 500 Startups, and global investors such as Tiger Global and Accel Speed up In various countries in Southeast Asia, the seed stage scene is just being formed, according to horses. “Literally this year, and perhaps last year, we’re starting to meet grab and Facebook executives. [Southeast Asia shopping giant] Lazada has begun writing checks for $ 5,000 and $ 10,000, “he says. “That’s really exciting to me. The ecosystem is just starting to recycle, and when it starts happening, you’ll see the tech ecosystem evolving.”
As for Iterative’s own development, a bit of course, this outfit is already looking at bigger funding. Asked how much the iteration could raise in 2022, Ma hopes to close a fund close to $ 50 million given what the market (and his co-founder) can absorb. Say you are.
“I’m still discussing it with my advisor,” Ma says. “But the pilot fund is going so well that we’re definitely going to raise it. Obviously, and the opportunities are just accelerating,” he adds.
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