It’s been half a decade since Investible launched our inaugural Early-Stage Fund, and first opened the doors of our offices in Singapore.
Since 2018, we have invested in 15 companies in Southeast Asia and we are now active in markets including Singapore, Malaysia, Indonesia, India, the Philippines and Vietnam.
Australia claims less than 2% of the world’s listed markets and an even smaller percentage of global private market capital. It’s an incredible hub of innovation, but in the big picture it’s only a tiny fraction of global opportunity and ambition. Investible recognised this as an opportunity early, and it has been a core differentiator in our mandate relative to most Australian venture capital funds.
More firms are now waking to these facts.
There is a lot the Australian market can learn from what’s happening in Singapore. Investible is eager to maintain our presence at the forefront of this rapidly evolving investment dynamic. To shed light on our strategic thinking, here are some of my observations and strategic context on the Singapore market.
Singapore's unique relationship to decision-making
In Singapore, Government is central to all change. Where Government leads (and inevitably allocates capital, directly or indirectly through influence of the sovereign wealth funds Temasek and GIC and their subsidiaries), business predictably and inexorably follows.
This creates unique alignment between Government and business (including the larger regional family offices who run extensive global business operations) that enables rapid and large-scale transformational change, whether this change is economic, social or (increasingly) environmental.
Ties between Singapore and Australia are growing stronger
In the context of climate, the Singapore Australia Green Economy Agreement (SAGEA), signed late last year, has provided the imprimatur for Singaporean institutions to engage directly with Australian businesses on working together to enhance cooperative frameworks, projects and trade and investment in environmental goods and services.
Australia’s Prime Minister also recently announced the SE Asia Economic Strategy to 2040, signalling a geopolitical and economic shift toward collaboration between Australia and ASEAN as a whole.
A global destination for family offices
In the last 5-years, it is estimated that more than US$3 trillion of capital from around 1,000 family offices globally has relocated to be domiciled in Singapore. In addition, the Government has encouraged fund managers to domicile in Singapore, subject to requirements on employing local Singaporeans in their direct and support operations. On top of Singapore’s favourable personal and company tax regime, these trends have enabled Singapore to rapidly claim a prominent position as a global destination for significant capital flows.
Investors— including family offices — are increasingly seeking to invest at earlier stage, in many cases down to Seed, and directly onto the cap table of early-stage businesses. Our experience is that the more patient the capital, the earlier stage (further up the risk curve) it is prepared to go.
Investible’s global deal sourcing and institutional-quality DD process is resonating with these parties, who understand our approach to de-risking early stage and the co-investment opportunities to scale these technologies as they mature.
An emerging green capital powerhouse
These trends are becoming increasingly more powerful when viewed through the lens of capital flows to deliver net zero. Institutional investor interest in technologies and solutions that will deliver climate mitigation, adaptation (or both) is already significant, and growing. Temasek, for example, has established a JV with Blackrock (Decarbonisation Partners) and also founded GenZero to accelerate decarbonisation solutions globally.
These organisations deeply understand the investment dynamic playing out, in that the value of later stage climate deals is already being bid up: thus while the net zero impact from these investments is still being achieved, the commensurate financial return (extremely important to the Singaporean investor mindset) is already becoming challenging.
The global dynamics of early-stage investing — including in Climate Tech — are changing quickly. The level of sophistication of the local investor market in Singapore is leading the conversation about how to not only play a meaningful in the global net zero transition, but to ensure strong investor returns are delivered along the way. Investible is well positioned at the forefront of this trend, and we look forward to deepening our existing relationships in the region — bringing new founders, investors and partners on board.
The Investible group of companies includes various entities who are corporate authorised representatives (CAR) of Boutique Capital Pty Ltd (BCPL) AFSL 508011. The full list of entities are detailed here.
CAR has taken all reasonable care in producing all the information contained in the website including but not limited to reports, tables, maps, diagrams and photographs. However, CAR will not be responsible for loss or damage arising from the use of this information. The contents of this website should not be used as a substitute for detailed investigations or analysis on any issues or questions the reader wishes to have answered.
You may download the information for your own personal use or to inform others about our materials, but you may not reproduce or modify it without our express permission. To the extent to which this website contains advice it is general advice only and has been prepared by the Company for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth).
The information in this website is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this information are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information.
Any investment(s) summarised in this website is subject to known and unknown risks, some of which are beyond the control of CAR and their directors, employees, advisers or agents. CAR does not guarantee any particular rate of return or the performance, nor does CAR and its directors personally guarantee the repayment of capital or any particular tax treatment. Past performance is not indicative of future performance.
All investments carry some level of risk, and there is typically a direct relationship between risk and return. We describe what steps we take to mitigate risk (where possible) in the investment documentation, which must be read prior to investing. It is important to note risk cannot be mitigated completely.
Whilst the contents of this website is based on information from sources which CAR considers reliable, its accuracy and completeness cannot be guaranteed. Data is not necessarily audited or independently verified. Any opinions reflect CAR’s judgment at this date and are subject to change. CAR has no obligation to provide revised assessments in the event of changed circumstances. To the extent permitted by law, BCPL, CAR and their directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this website, or for any negligent misstatements, errors or omissions.
Subscribe to our newsletter
Be the first to receive the latest news, insights and resources from Investible
You are now subscribed !
Oops! Something went wrong while submitting the form.