This interview originally appeared in the DealStreetAsia DATA VANTAGE report SE Asia VC Funds: H2 2024 Review.
Global venture capital (VC) firm Antler is known to incubate nascent startups from day zero, having backed companies like Singapore marketplace Reebelo, global e-SIM marketplace Airalo, and Indonesian B2B payments platform Brick. Its $30 million, Southeast Asia-focused first fund closed in 2019.
The successor vehicle, Antler SEA Fund II, closed at $72 million—more than double the size of Fund I—in 2024, despite a tough fundraising environment for Southeast Asia-focused venture capital firms.
Jussi Salovaara, Co-founder & Managing Partner Asia, attributed Antler’s ability to draw investors to its structured approach to company building, broad regional footprint across Southeast Asia, and unique ability to create globally scalable companies from the region.
“Our portfolio has raised over $350 million in follow-on funding since inception, sending a strong signal to LPs that our investment approach is not only effective but also de-risks early-stage investments,” said Salovaara.
Southeast Asia’s VC fundraising hit a four-year low in 2024, according to the report SE Asia VC Funds: H2 2024 Review by DealStreetAsia DATA VANTAGE. Regional VC firms closed 14 funds last year, which collectively amassed $2.15 billion in capital. The annual performance fell sharply compared to the previous year, when 32 funds had hit final closes, securing $6.77 billion.
“LPs are becoming more selective and concentrated… consolidating commitments into fewer, more established fund managers,” said Salovaara in an interview for the report. However, he added that early-stage investing remains a bright spot. “The pre-seed entry point, where Antler focuses, is showing early signs of recovery.”
While governance issues such as the alleged fraud at eFishery, will hurt LP sentiment, startups and the funds that back them can stay resilient by “embedding strong governance principles from day one, rather than treating them as an afterthought”.
Antler’s second vehicle received backing from institutional partners, including a sovereign wealth fund, a pension fund, an endowment, and reputable global and regional family offices. Founded in 2017, Antler manages over eight funds and has made more than 1,140 investments globally. It has invested in over 300 Southeast Asian startups since its launch in Singapore in 2018.
Edited excerpts of the interview with Jussi Salovaara:
Antler SEA Fund II closed at $72 million, more than double the size of Fund I. What were the key drivers behind this growth, and how did LP sentiment differ from your first fundraise considering the fact that venture funding has dramatically cooled in the region in recent years?
It’s a direct reflection of our proven ability to back high-potential founders early and support them through their growth journey. Our track record demonstrated this clearly, with our portfolio raising over $350 million in follow-on funding since inception, sending a strong signal to LPs that our investment approach is not only effective but also de-risks early-stage investments by ensuring startups have the runway and support needed to secure later-stage capital.
This validation has positioned Antler as a lower-risk entry point into early-stage Southeast Asian tech, which resonated well with investors, particularly in today’s cautious funding environment.
“Our portfolio companies have raised over $350m in follow-on funding since inception.”
The significant shift in our LP base towards more institutional partners, including a sovereign wealth fund, a pension fund, an endowment, and reputable global and regional family offices, also speaks volumes about the confidence in our model.
These sophisticated investors are drawn to Antler’s structured approach to company building, our broad regional footprint across Southeast Asia, and our unique ability to create globally scalable companies from this region.
The strategic expansion from our first location in Singapore with Fund I to four cities with Fund II allows us to source exceptional founders from a diverse pool, providing LPs with exposure to a wide range of opportunities in a region that is increasingly seen as a critical hub for innovation.
“LPs appreciate our ability to offer early, first-look co-investment opportunities.”
Moreover, our global presence across 30 cities and our institutional, data-driven approach to scouting, filtering, and KPI tracking set us apart. LPs appreciate our ability to offer early, first-look co-investment opportunities and our cross-border value-add, which is not only a differentiator for our founders but also enhances the attractiveness of our portfolio companies on a global scale.
Ultimately, Antler’s positioning as a catalyst for innovation from day zero enables us to drive meaningful impact within the ecosystem while delivering compelling returns for our investors, even in a cooled venture funding climate.
How has LP sentiment toward Southeast Asian VC funds evolved in this cycle? Are they becoming more selective about fund managers, ticket sizes, or investment horizons, particularly for early-stage investing?
LPs are becoming more selective and concentrated. While overall venture funding has slowed, particularly in later-stage rounds, early-stage investing remains a bright spot.
The pre-seed entry point, where Antler focuses, is showing early signs of recovery, reinforcing the strategic advantage of our positioning. In contrast to the challenges faced by Series A+ rounds, early-stage valuations remain attractive, offering stronger long-term upside and allowing LPs to enter at better pricing while building a pipeline for future growth rounds.
“While overall venture funding has slowed, early-stage investing remains a bright spot.”
As liquidity cycles extend, LPs are adapting by consolidating commitments into fewer, more established fund managers with proven track records rather than spreading capital widely. This shift has led to larger ticket sizes for top-performing VCs, making it increasingly difficult for newer or first-time funds to raise capital.
Institutional LPs, in particular, are emphasising governance, transparent reporting, and well-structured follow-on strategies as key factors in their decision-making. Some investors are also taking a more measured approach, waiting for distributions from their existing GPs before committing to new managers.
“LPs are consolidating commitments into fewer, more established fund managers.”
Despite these shifts, Antler’s unique model—backing companies from day zero, scaling them beyond Southeast Asia, and optimising for both regional and global exit markets—resonates with LPs seeking both diversification and de-risked early-stage exposure.
Our approach not only hedges against later-stage valuation compressions but also aligns with LPs’ increasing preference for funds with structured investment frameworks and long-term scalability. As Southeast Asia continues to emerge as a critical innovation hub, experienced early-stage investors with deep regional networks and disciplined capital deployment remain well-positioned to attract LP capital, even in a more selective environment.
How do you see the alleged fraud at eFishery and other governance issues in Southeast Asia impacting your risk assessment and approach to governance? Separately, do you anticipate increased caution from LPs when allocating capital to the region as a result?
They have reinforced the critical need for rigorous due-diligence, stronger governance frameworks, and greater operational oversight across the venture ecosystem. While these remain isolated incidents rather than reflections of the broader market, they serve as a wake-up call for both investors and founders to elevate transparency and accountability.
At Antler, governance has always been proactive rather than reactive—we place strong emphasis on founder integrity, structured capital deployment, and embedding governance best practices from day zero. This includes ESG policies as part of our investment process and ensuring that startups adopt institutional-grade governance as they scale.
Given our high-touch, early-stage investment model, we have a unique ability to influence from the outset, ensuring that our founders build companies with long-term resilience. This is why institutional investors continue backing us. Our structured investment processes and high founder engagement mitigate risks and provide greater confidence in portfolio outcomes.
“Strengthening governance must be a collective effort involving investors, founders, and regulators.”
Strengthening governance must be a collective industry effort involving investors, founders, and regulators. The most resilient startups—and the funds that back them—will be those that embed strong governance principles from day one, rather than treating them as an afterthought. As the region matures, we expect more standardisation in governance best practices, which will ultimately lead to a more transparent and investable ecosystem over time.
Antler allocated 90% of its Southeast Asia investments to day zero startups in 2023 and reduced this to 80% in 2024. What factors influenced this change, and do you foresee further adjustments in 2025?
It was a strategic allocation adjustment for that cycle rather than a fundamental shift in our investment approach. Each year, we fine-tune our strategy based on market conditions, portfolio needs, and founder quality, but our core focus remains unchanged— backing founders from the earliest days of building.
As our portfolio matures, we have identified select opportunities to invest directly at the pre-seed and seed stage, ensuring that high-performing startups receive the capital they need to scale. This also allows us to support our most promising companies through follow-on rounds, ensuring they are well-positioned for long-term success.
“Day zero investing is embedded deep within our DNA, and this will continue to be our primary focus.”
Looking ahead to 2025, we do not anticipate drastic changes but will continue to adjust our investment allocations based on market opportunities and founder potential. What remains constant is our commitment to being the earliest and most dedicated backer of exceptional founders, ensuring that they have the right capital, resources, and network to build transformative companies from the ground up.
Day zero investing is embedded deep within our DNA and this will continue to be our primary focus.
Given the evolving macroeconomic landscape, such as high interest rates and rising US dollar, has Antler made any shifts in its investment thesis? Are there particular sectors or business models that now seem more attractive?
Antler’s core investment thesis remains consistent, but we continuously refine our approach to align with macroeconomic realities. The current environment—marked by high interest rates and a strong US dollar—has reinforced the importance of capital-efficient business models, faster paths to profitability, and clear product-market fit from an earlier stage.
While we remain sector-agnostic, we are particularly focused on startups that offer structural advantages in a capital-constrained environment, where demand remains strong regardless of broader economic cycles.
“AI-driven enterprise efficiency is seeing strong tailwinds.”
Certain themes have become even more attractive in this climate. AI-driven enterprise efficiency is seeing strong tailwinds as businesses prioritise cost optimisation and productivity, creating opportunities for AI-powered workflow automation, compliance, cybersecurity, and developer tools.
In parallel, vertical AI applications are gaining traction as general-purpose AI models become commoditised—startups that build AI-driven solutions tailored to specific industries, such as LLM-powered compliance, healthcare automation, and AI-enhanced customer experiences, are well-positioned for long-term defensibility.
Fintech infrastructure and embedded finance also continue to be a focus, particularly as businesses seek better risk management, compliance automation, and cross-border financial solutions.
“Fintech infrastructure and embedded finance also continue to be a focus.”
These themes are not exhaustive, and we continue to explore emerging opportunities where transformative innovation can thrive in Southeast Asia and beyond. The current macro environment does not change our conviction in early-stage investing but rather refines our lens on what business models and execution strategies will create the most durable, high-value companies over the next decade.
Looking ahead to 2025, do you anticipate more liquidity events for your portfolio? In relation to this, how is Antler positioning its startups for successful exits in the current market climate?
We anticipate a gradual increase in liquidity events, but the nature and timing of exits will differ from previous cycles.
While IPOs remain selective and late-stage M&A timelines have extended, we see a growing pipeline of strategic acquisitions, secondary transactions, and private equity interest in high-performing startups, particularly in enterprise AI, fintech infrastructure, and digital workflow automation.
Rather than optimising for short-term liquidity, our approach remains long-term and founder-first, ensuring our companies are built with the fundamentals needed to attract exit opportunities when the time is right.
“To position our startups for successful exits, we emphasise capital efficiency from the start.”
To position our startups for successful exits, we emphasise capital efficiency from the start. Additionally, we work with founders early on to develop clear monetisation strategies, establish defensible market positions, and integrate into key industry ecosystems, ensuring that they become strong acquisition targets for corporates looking for strategic expansion.
While Southeast Asia’s IPO market remains nascent, we maintain global market awareness, helping portfolio companies evaluate potential listing opportunities in the US, Hong Kong, and other mature exchanges. However, we do not push for early or rushed exits—we prioritise long-term strategic growth, ensuring that liquidity events occur when the company has achieved its full potential rather than being dictated by market cycles.
The best exits will come to companies with strong fundamentals, recurring revenue models, and well-positioned industry advantages—and Antler remains focused on ensuring our startups meet these criteria as they scale.
