Con­ver­gence Ven­tures at­tracts Chi­nese in­vestors to In­done­sia

China Daily (USA) - - BUSINESS - By BLOOMBERG

Con­ver­gence Ven­tures just closed its first fund, rais­ing $30 mil­lion from in­vestors, in­clud­ing well-known Chi­nese en­trepreneurs, to place bets on In­done­sia’s bur­geon­ing tech­nol­ogy sec­tor.

The Jakarta-based ven­ture cap­i­tal firm ex­ceeded its fundrais­ing tar­get of $25 mil­lion, with fi­nanc­ing from a di­verse group that in­cluded Sin­ga­pore-based gam­ing uni­corn Garena and In­done­sia’s Emtek Group, ac­cord­ing to Con­ver­gence man­ag­ing part­ner Adrian Li.

Li, who started Con­ver­gence in 2014 af­ter a stint as founder of Chi­nese on­line ed­u­ca­tion startup Idapted, is tap­ping his net­work to in­crease bets on In­done­sia, a coun­try be­lieved to be on the cusp of a tech­nol­ogy boom as smart­phone usage climbs and the mid­dle class swells to an es­ti­mated 141 mil­lion by 2020.

In June, his firm or­ga­nized a trip to Jakarta for prom­i­nent Chi­nese an­gel in­vestors and founders, in­clud­ing Wen­sheng Cai, whose Meitu Inc is close to list­ing in Hong Kong; Kai-Fu Lee, chief ex­ec­u­tive of­fi­cer of Si­no­va­tion Ven­tures; Xiaop­ing Xu, who started Zhen Fund and New Ori­en­tal Ed­u­ca­tion and Tech­nol­ogy Group; and Gavin Ni, founder of Zero2IPO Group.

“We see that there are sim­i­lar­i­ties in what we ex­pe­ri­enced in China seven years ago,’’ said Xu, who in­vested in Con­ver­gence’s fund af­ter the tour. “This rep­re­sents a great op­por­tu­nity to in­vest.’’ Con­ver­gence’s suc­cess­ful fundrais­ing comes as ven­ture cap­i­tal in­vest­ment cools in China af­ter 2015’s record pace. Early-stage ven­ture fund 500 Star­tups closed a sec­ond South­east Asian fund to­tal­ing $50 mil­lion last month.

Con­ver­gence, which plans to in­vest in 30 early-stage in­ter­net and mo­bile ven­tures, re­cently ap­pointed Justin Kan, a part­ner at Y Com­bi­na­tor, and Manik Arora, founder of IDG Ven­tures In­dia, to its ad­vi­sory board.

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