Southeast Asia ‘Proptech’ Fund the Main Target for Cento Ventures
Venture capital firm Cento Ventures' is targetting to establish anew "proptech" fund this year. The new endeavor will be focused on funding real estate investments in the Southeast Asian territory, according to Business World Online. Southeast Asia is also looking like a prime destination for capital growth after the company's analysis yielded positive results from companies such as Grab and Tokopedia, among others.
Proptech is defined as 'start-ups' that are engaged in creating innovative solutions--products and services which benefit the real estate market. Cento Ventures' "proptech" funding may create funding for high-yield, promising start-up companies and services across the Asia Pacific. Pauline Chong, Cento Ventures' principal, said that Cento Ventures is 'disciplined' in choosing which companies to aid with funding, with an emphasis on choosing "winners."
Most real estate markets in this region belong to the 'emerging markets' category. While all of them are not yet disrupted fully--or even partially--by technology, the principal said that some start-ups have taken to offering innovations directed at disrupting the current trend in the market.
Cento Ventures is also busy in other things, according to Deal Street Asia. Its analysis of the Southeast Asian market trends is a big boost to its business. It has yielded positive results, pinpointing that internet technology-related firms have a bigger share of regional revenues. In Southeast Asia, these companies accounted for $11 billion in 2018, up from $5.8 billion in 2017.
Of that amount, five companies have made up 70 percent of profits. Grab it at the top with $3 billion, Lazada follows suit at $2 billion, Go-Jek is at $1.5 billion, Tokopedia accumulated profits of $1.1 billion, and rounding all these companies out is Sea Group, which has a $575 million profit.
As for Southeast Asian countries, Indonesia led the way in holding more than 70 percent of these capitals. If only Cento Ventures recognized Grab, Sea Group, and Lazada as SG startups (Singapore,) the trend would've changed considerably in favor of the said country. Vietnam rounded out 2018's highest earners, with countries like Malaysia, the Philippines, and Thailand lagging behind.
Cento Ventures recognized the need for market innovations since real estate has become a changing market. As more customers become updated with the latest trends, the market will only need to innovate and keep up. The same can be said for real estate property operators and owners who will need to deliver on making more tech-based changes.