Singapore-based grain and agricultural trading group CJ International Asia (CJIA) has teamed up with venture capital firm KK Fund to form a joint investment vehicle of undisclosed size, DealStreetAsia reported today.
Dubbed Hiven, the fund will invest in Southeast Asia-based food, agriculture and biotechnology developers in a bid to bolster employment and economic drive in the region.
CJIA is part of conglomerate CJ Group. The South Korea-headquartered parent firm has already conducted corporate venturing, having participated in funding rounds for companies including virtual concert platform AmazeVR, on-demand logistics service Barogo and private equity firm ATU Partners.
KK Fund focuses on seed to series A-stage internet and mobile technology companies, investing between $300,000 and $500,000 per deal. The firm has invested in 27 startups across Southeast Asia including Vietnam, Thailand and Indonesia.
“We are excited to embark on this cross-learning development with KK Fund, which is a seasoned VC investor with a long, established track record across Southeast Asia,” CJIA chief executive Lee Dong Bahk was quoted as saying by DealStreetAsia.
Corporates are becoming increasingly interested in Southeast Asian agritech companies. AgriAku, an Indonesia-based business-to-business marketplace for farmers, completed a $6m pre-series A round in March 2022 led by Go-Ventures, the VC firm formed by ride hailing and e-commerce firm GoTo.
The majority of recent agtech deals in Southeast Asia have focused on consistent product output, pest control and climate protection, as these territories are more susceptible to harsh, crop damaging climates.