Temasek's venture capital arm, Vertex, raises $900M in first round of new fund

In its first round of fundraising for its most recent fund, Vertex Venture reportedly raised over $900 million.

According to Vertex CEO Chua Kee Lock, Vertex Master Fund III, which will be established in 2021, ended its first round at the end of June. Vertex Venture Holdings is the venture capital (VC) division of Singapore's state investor, Temasek Holdings. According to Chua, the company will soon reach its $1 billion fundraising goal.

The master funds of Vertex provide funding to a global network of more focused funds that invest in particular geographic areas or sectors. The Singapore-based firm has one growth-stage fund in addition to five early-stage funds, one each for making investments in Southeast Asia, China, the United States, Israel, and healthcare companies.

Despite a more challenging business climate for local startups and venture capital firms due to rising interest rates and a slowing economy, the Master Fund III was able to raise money. In 2019, its predecessor fund amassed $730 million.

Chua said that the group has retained its pace of investing in about a dozen startups a year in India and Southeast Asia, Vertex's two key markets, and will keep investing at the firm's steady pace in the region.

As of the end of March, Vertex, known for being an early investor in the dominant app operator Grab, had a global portfolio of over 300 companies. Unicorns, or startups with a value of $1 billion or more, such as the cross-border payment company Nium and the intellectual property technology PatSnap, are among other notable portfolio companies.