Singapore-based Genesis Alternative Ventures has hit the first close for its $150-million second venture debt fund for Southeast Asia.
The fund has secured almost half of its capital commitments with 80% coming from existing investors including Sassoon Investment Corp, Aozora Bank, Korea Development Bank, Mizuho Leasing and Silverhorn. Israeli venture investing platform OurCrowd also joined as a new limited partner (LP).
Genesis issues $1-10 million debt cheques to Series A-C stage firms on the back of equity financing granted to these startups. It targets revenue-generating, high-growth startups in Southeast Asia.
Venture debt is generally deployed by way of senior, secured non-convertible debenture accompanied by equity options. Such loans are offered to help startups extend their cash runway while allowing founders minimise equity dilution.