Singapore’s XA Network and Vertex Ventures enter into partnership as the former invests an unannounced amount to boost Vertex Ventures fourth South-east Asia and India fund that closed at US$305 million – far more than the targeted amount of US$230 million.
Previously known as Xoogler Angels, XA Network consists of a nexus of investors who are either former or current top executives from leading tech companies in the world and the region – such as the likes of Facebook, Microsoft, and Apple to name a few.
Founded in 2018, XA Network provides funding to early-stage enterprises in the APAC region and has injected more than US$3 million in capital to over 20 companies across various industries. Through its member referrals, XA Network typically provides investments to Southeast Asian companies that are valued at up to US$5 million and the investment amount ranges between US$50,000, and US$300,000. Some of the companies backed by XA Network include Tigerhall (mentorship enterprise), Pencil (creative AI company), and Neuron Mobility (micromobility operator).
With XA’s diverse competencies in the technology, marketing, and operations field, the partnership would enable Vertex Ventures to leverage on the network’s deep knowledge as well as tap into their extensive talent pool which will open doors for collaborative opportunities. Commenting on the partnership, Managing Partner of Vertex Ventures, Mr Joo Hock Chua shares his excitement that “We are delighted to have XA as an LP,” and “We certainly look forward to working with them closely to help our portfolio grow.”
Vertex Venture is Temasek’s venture capital (VC) arm and although based in Singapore, it has offices in Jakarta and Bangalore as well. The VC has a network of roughly 200 companies in their early-stage portfolio.
With Vertex SEA focusing on Series A and B funding and having networks from pivotal innovation hubs like Silicon Valley, China, Israel and Southeast Asia, XA would be able to benefit from Vertex’s advisory acumen through its lens as a global investor. This will enable XA members an opportunity to have a more diverse investment portfolio in Series A and B rounds.
According to XA member Mr Dawidowicz, who is also APAC Creator & Artist Marketing Lead at Youtube, some of the decision-making that XA would partake in before backing a company. These include evaluating the company’s full commitment to the project and if they are open to receiving tough questions and constructive criticism. To add, XA would also assess the startup’s budgetary skills, how it manages its cash flow as well as consider their analytical competencies and agile iteration of their products and services.
Mr Dawidowicz also shared that although investing in a VC fund as a limited partner (LP) is a first for the network in a move to allow members to diversify their portfolio, this would not supersede their core focus of providing pre-seed and seed investments.