Cocoon Capital Launches 50 Million Fund to Propel Southeast Asian Startups
Cocoon Capital, a leading venture capital firm based in Southeast Asia, has recently announced the first close of its third fund, Cocoon Capital Fund III, raising USD 30 million towards a target of USD 50 million. This new fund aims to bolster its dedication to investing in promising enterprise and deep tech startups in the region. With a proven track record of strong returns from its previous funds, Cocoon is well-positioned to navigate the competitive venture capital landscape of Southeast Asia.
The firm’s approach is notable for concentrating on foundational technologies and innovation opportunities often overlooked in favor of the latest tech trends like consumer applications, AI, and cryptocurrency. Instead, Cocoon Capital is committed to addressing significant industrial challenges through investments in companies focused on areas like manufacturing, robotics, healthcare, and infrastructure. According to Michael Blakey, the Managing Partner, their goal is to nurture startups that tackle complex problems, emphasizing the importance of durability and transformative potential over quantity in their portfolio.
Cocoon Capital has distinguished itself as a proactive investor, commonly leading seed rounds in startups before they attract wider attention. With a rigorous 10-step diligence process that assesses governance, technical depth, and founder capability from the onset, Cocoon has successfully backed several companies that have since emerged as leaders in the deep tech sector.
The fund aims to make approximately five investments a year, focusing primarily on pre-seed and seed-stage opportunities, particularly in B2B software and deep tech. The strategy will extend its reach beyond Southeast Asia to include potential investments in broader Asia and Australia.
In the backdrop of the ongoing digital transformation across Southeast Asia, Cocoon Capital recognizes substantial opportunities in sectors that have been traditionally undersupplied with innovation. Carol Cheung, a partner at the firm, pointed out that they are particularly keen on supporting founders who are leveraging technology to modernize industries, combat climate change, improve healthcare systems, and enhance financial infrastructures.
To ensure sustained support for their portfolio companies as they scale, Cocoon has set aside about 55% of the fund for follow-on investments, allowing continued backing up to Series A stages. Better examples of its successful ventures include Aprisium, known for its innovative solutions in industrial contamination detection, and Augmentus, a platform revolutionizing robotics programming in manufacturing.
Cocoon’s efforts have not gone unnoticed; the firm has garnered a devoted set of limited partners (LPs) for Fund III, including returning investors and newcomers from across Asia, Europe, and North America. The confidence reflected in their investment approach speaks volumes about the firm’s strong reputation and commitment to generating impactful returns.
As investment landscapes evolve, Cocoon Capital aims to lead by example, building companies that don't just endure market fluctuations but also redefine their sectors and innovate on a scale previously unseen in the region. With their fund open for new commitments until the final close, Cocoon Capital is actively seeking partners who share its vision of creating enterprise solutions that make a difference both locally and globally. As they continue to build their robust portfolio, the firm’s slogan, 'Dare to Change', resonates even more, pushing boundaries in Southeast Asia’s tech ecosystem.
The firm’s approach is notable for concentrating on foundational technologies and innovation opportunities often overlooked in favor of the latest tech trends like consumer applications, AI, and cryptocurrency. Instead, Cocoon Capital is committed to addressing significant industrial challenges through investments in companies focused on areas like manufacturing, robotics, healthcare, and infrastructure. According to Michael Blakey, the Managing Partner, their goal is to nurture startups that tackle complex problems, emphasizing the importance of durability and transformative potential over quantity in their portfolio.
Cocoon Capital has distinguished itself as a proactive investor, commonly leading seed rounds in startups before they attract wider attention. With a rigorous 10-step diligence process that assesses governance, technical depth, and founder capability from the onset, Cocoon has successfully backed several companies that have since emerged as leaders in the deep tech sector.
The fund aims to make approximately five investments a year, focusing primarily on pre-seed and seed-stage opportunities, particularly in B2B software and deep tech. The strategy will extend its reach beyond Southeast Asia to include potential investments in broader Asia and Australia.
In the backdrop of the ongoing digital transformation across Southeast Asia, Cocoon Capital recognizes substantial opportunities in sectors that have been traditionally undersupplied with innovation. Carol Cheung, a partner at the firm, pointed out that they are particularly keen on supporting founders who are leveraging technology to modernize industries, combat climate change, improve healthcare systems, and enhance financial infrastructures.
To ensure sustained support for their portfolio companies as they scale, Cocoon has set aside about 55% of the fund for follow-on investments, allowing continued backing up to Series A stages. Better examples of its successful ventures include Aprisium, known for its innovative solutions in industrial contamination detection, and Augmentus, a platform revolutionizing robotics programming in manufacturing.
Cocoon’s efforts have not gone unnoticed; the firm has garnered a devoted set of limited partners (LPs) for Fund III, including returning investors and newcomers from across Asia, Europe, and North America. The confidence reflected in their investment approach speaks volumes about the firm’s strong reputation and commitment to generating impactful returns.
As investment landscapes evolve, Cocoon Capital aims to lead by example, building companies that don't just endure market fluctuations but also redefine their sectors and innovate on a scale previously unseen in the region. With their fund open for new commitments until the final close, Cocoon Capital is actively seeking partners who share its vision of creating enterprise solutions that make a difference both locally and globally. As they continue to build their robust portfolio, the firm’s slogan, 'Dare to Change', resonates even more, pushing boundaries in Southeast Asia’s tech ecosystem.
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