Venture capital could produce the next Jack Ma or Pony Ma in Southeast Asia, says MindWorks

Big opportunities abound in Southeast Asia for internet-savvy investors to nurture the growth of a new generation of technology entrepreneurs who can become the “Jack Ma and Pony Ma” of the region, according to venture capital firm MindWorks Ventures.

Hong Kong-based MindWorks sees a funding gap in Southeast Asian markets like Indonesia in which the existing generation of tycoons who got rich running businesses in natural resources, property and industry may lack the knowledge to fund start-ups operating in the “new economy”.

Can Asean compete with China and India for private capital?

The internet has disrupted many traditional businesses, ranging from media and travel to transportation and retail, and new start-ups in Southeast Asian countries are in need of funding to help take their businesses to the next level.

“We have many entrepreneurs in Southeast Asian countries who understand the internet, but do not have the capital to take start-ups to the next stage of growth. We want to be the first generation of venture capital in the region that can find the next Pony Ma and Jack Ma in these countries,” said Joe Chan, a partner at MindWorks, referring to the founders of Tencent Holdings and Alibaba Group Holding, respectively. He was speaking on the sidelines of Thursday’s 2018 Asia Private Equity Forum in Hong Kong.

MindWorks focuses on early-stage investment, providing funding from series A to series C. It is in the process of raising US$70 million for its third fund, which raised US$30 million in its first close.

Southeast Asia has already attracted investment from the two Mas’ companies. Tencent and Alibaba have invested in many start-ups that have gone on to become unicorns and IPO candidates.