Key sections of the Asian Pacific technology venture capital space are ramping up investment, defying the COVID-19 economic downturn.
Lightspeed India Partners, is one such VC, having just announced it’s secured $US275 million of committed capital for its Lightspeed India Partners III fund.
The firm, part of US based, Lightspeed Venture Partners, says it’s bullish about the future investment market despite many VCs curtailing activity in the wake of the pandemic and economic fall out.
Lightspeed’s previous tech investments across India include EdTech startup, Byju’s, social media company, Sharechat and conversational AI startup, Yellow Messenger.
Previous industry figures, from CB Insights, showed a decline in available capital was tipped to be especially pronounced in Asia, where private market funding was expected to fall significantly.
But there are areas of growth, with Lightspeed pointing to the acceleration of the Indian digital economy, where there’s a flourishing of sectors in B2B and B2C and categories emerging, where technology is enabling new businesses and models.
Lightspeed says it will continue to focus on early stages of innovation, and work with founders to support them through their growth lifecycle – including the growth capital pool of over $US3 billion raised recently in its global funds.
A Boston Consulting Group report is also positive about sections of the Asian Pacific investment market, saying while COVID-19 has significantly disrupted the region’s private equity industry it doesn’t alter promising long-term growth prospects.
“We believe that firms with the right capabilities in place and willingness to be bold, will capitalise on the once-in-a-generation opportunity that the next several years present,” the report states.
Meanwhile Lightspeed, which has invested over $US750 million in India since 2007, says it will continue to partner and support bold entrepreneurs building for tomorrow, right from inception through growth stages.
“This year began with a crisis like no other,” a company statement said.
“It is always tough to start a company, it requires passion & leadership – and in these times, it requires more courage than ever before.”