This interview originally appeared in the DealStreetAsia DATA VANTAGE report SE Asia VC Funds: H2 2024 Review.
Southeast Asian venture capital firms currently raising capital are facing one of the toughest fundraising environments.
The alleged fraud at eFishery has sent shockwaves through Southeast Asia’s venture ecosystem, raising concerns about the ability of local fund managers to protect LP capital. The scandal is likely to intensify due diligence across the region, accelerating a flight to quality, particularly among foreign LPs.
Some LPs are already diverting capital to alternative markets like India, where larger addressable markets and clearer exit pathways provide more predictable returns.
Consequently, VC fundraising in Southeast Asia hit a four-year low in 2024. Regional VC firms secured 14 final closes last year that cumulatively raised $2.15 billion, according to the DealStreetAsia DATA VANTAGE biannual report SE Asia’s VC Funds: H2 2024 Review. This is a sharp fall from the previous year, when 32 funds had hit final closes, securing $6.77 billion.
Against this backdrop, Indonesia-based VC Alpha JWC Ventures is reportedly planning to raise its fourth fund, as DealStreetAsia reported in January. While the VC did not divulge the target size of the investment vehicle, it confirmed that the fund will be smaller than its predecessor, which had closed at $443 million in 2021.
“Whenever we raise funds, our approach is guided by a well-balanced perspective that considers both current market conditions and long-term opportunities,” said Chandra Tjan, Co-founder & General Partner, Alpha JWC Ventures in an interview for the DATA VANTAGE report.
Alpha JWC’s third fund had backing from global and regional investors including the World Bank’s International Finance Corporation (IFC) and Morgan Stanley Asset Management. “We are incredibly grateful to our existing LP base… due to reallocation from Chinese assets, our fund has benefited from even greater global interest in recent years,” said Tjan.
Among Alpha JWC’s notable investments are fintech unicorn Kredivo, Southeast Asian used car marketplace Carro, and the wealthtech startup Ajaib, which became a unicorn in 2021. The firm has also backed the Indonesian farm-as-a-service company Beleaf; Cornerstone Robotics, which specialises in surgical robotics; the F&B company ESB; and the HR automation platform Omni.
Edited excerpts of the interview with Tjan.
We understand that Alpha JWC is preparing to raise its fourth fund, which is expected to be smaller than Fund III. What are the main factors behind this decision? Was it influenced more by market conditions or by a strategic recalibration?
Whenever we raise funds, our approach is guided by a well-balanced perspective that considers both current market conditions and long-term opportunities, ensuring we continue delivering sustainable value to investors and founders alike. While our investment fundamentals remain consistent, each fund presents an opportunity to refine our strategy in response to evolving market dynamics.
With any upcoming funds that we may have, we will keep reinforcing our commitment to Indonesia and Southeast Asia, integrating lessons learned from previous cycles while staying agile and aligned with emerging trends. Our focus remains on driving meaningful impact—both within our portfolio and across the broader ecosystem—while continuing to build enduring businesses and legacies.
What lessons from Fund III’s deployment and performance influence your fundraising approach for Fund IV? Are you making any structural adjustments to address LP concerns?
Our core investment fundamentals remain unchanged, ensuring consistent value for investors and founders. However, we continuously refine our strategy to stay ahead of market trends. Adjustments to our investment strategy reflect market movements, our team’s growing capabilities, and opportunities to generate superior returns.
“Our plan remains unchanged, i.e. to continue to focus on deploying into homegrown Indonesian champions.”
As an Indonesian fund, we will keep building on proven strategies while incorporating new insights, reinforcing our long-term commitment to Indonesia. Our plan remains unchanged, i.e. to continue to focus on deploying into homegrown Indonesian champions following our track record and market know-how domestically. Given our team’s reputation in the market, followed by distinct value creation capabilities in go-to-market and government relations, sectors that require market access support naturally see founders preferring to partner with Alpha JWC Ventures.
Your last fund attracted institutional investors like Morgan Stanley Asset Management. Are you seeing continued interest from global institutions, or are regional LPs taking a larger role in this cycle?
We are incredibly grateful to our existing LP base, which includes a vast network of global institutions, regional families, and prominent entrepreneurs. Due to reallocation from Chinese assets, our fund has benefited from even greater global interest in recent years, driven by our strong track record and meaningful portfolio.
Alpha JWC has historically been sector-agnostic. Given the shifts in global and regional trends, are there any sectors you are deprioritising or approaching more cautiously?
We maintain a sector-agnostic approach, recognising that Southeast Asia’s venture industry is still in its early stages. A broad investment thesis enables us to drive strong and consistent returns.
With consumer spending in Southeast Asia slowing last year due to high interest rates and rising US dollar, how are you adjusting investment activities in the consumer sector? What strategies do you take to support your consumer-focused portfolio in maintaining growth and sustainability in 2025?
We remain committed to supporting meaningful and sustainable consumer ventures. As consumer spending patterns evolve, we are seeing even greater opportunities in (1) lower-tier cities and (2) mass-market propositions over premium-luxury segments. These underserved populations often have limited access to modern consumer options beyond traditional warungs, yet demand continues to grow despite macroeconomic challenges.
Alpha JWC has backed several high-profile startups. How do you assess the current exit environment, particularly for Indonesian and Southeast Asian startups? In relation to this, do you see IPOs as a viable exit route in the near term, or will trade sales and secondaries play a bigger role?
Our team has always taken a disciplined approach to exit planning, which are factors already considered in the investment underwriting process. We expect some of our portfolio companies to go public in the coming two years, thawing out the market freeze of the last few years, helping to revive investor confidence and unlock financing opportunities for later-stage ventures. Aside from IPOs, we continue to see a strong mix of M&As, trade sales, and secondary transactions, working closely with founders to determine the best exit strategy tailored to each company’s unique circumstances.
