Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia.
"Just like there was a Seed-stage gap in 2013 that closed by 2015, then a Series A gap in 2015 that closed by 2017, now there's a Series B gap that started in 2018," Vinnie Lauria, a founding partner at Golden Gate Ventures, told CNBC by email.A 2018 report from the Singapore Venture Capital & Private Equity Association revealed that less than a third of early stage-funded companies in Southeast Asia successfully raised Series B financing. In the U.S. and the U.K.
Other investors have reportedly said a lack of high-quality start-ups contribute to the funding crunch at the Series B stage.