The new regional council will promote the venture capital (VC) industry within the Association of Southeast Asian Nations (ASEAN) region.
Backed by some of the most prominent Southeast Asian VC firms, the VC associations of Singapore and Indonesia—the Singapore Venture Capital & Private Equity Association (SVCA) and the Asosiasi Modal Ventura Untuk Start-Up Indonesia (AMVESINDO), respectively—jointly announced the creation of the ASEAN Venture Council (AVC) to foster VC growth in the ASEAN region.
A memorandum of understanding between the SVCA and AMVESINDO was signed in Indonesia on 30 August 2016 at an event attended by President Jokowi Widodo of Indonesia. The memorandum sets out the terms of collaboration in creating the AVC to promote greater collaboration and development of the region’s VC industry.
The main goals of the AVC include the following:
- Strengthening and promoting the regional entrepreneurial and financial ecosystem across the ASEAN region
- Facilitating regular updates on regulatory issues
- Lobbying for favorable conditions for the development of the VC industry
The AVC will be formed as an umbrella organization and will comprise various venture associations interested in promoting the ASEAN VC ecosystem. It is already anticipated that other VC associations in the region, including those of Malaysia and Thailand, will join the AVC at a later date.
Southeast Asia’s start-up industry is experiencing accelerated growth, with approximately US$800 million committed to tech start-ups in the first half of 2016. Research has indicated that while there is a slowdown in VC investments elsewhere and, notwithstanding the lack of deal activity in India and China, investors are increasingly interested by high-growth countries in Southeast Asia like Myanmar and Vietnam.