Australia-based telecommunications firm Telstra has committed about A$10m ($7m) to the $80m fund being raised by Singapore-based venture capital firm Monk’s Hill Ventures, the Sydney Morning Herald reported on Sunday.
The fund will look to invest in Southeast Asia-based startup companies specialising in cloud software, internet of things, mobility, enterprise, big data and analytics technology.
Limited partners in the fund already include networking technology provider Cisco, internet company Yahoo Japan, which invested through its YJ Capital subsidiary, and Singaporean sovereign wealth fund Temasek.
Matthew Koertge, managing director of Telstra’s corporate venturing unit Telstra Ventures, said: “Normally we invest directly in companies. Investing in a fund like this is very different because we’re basically committing to a pool of capital and the venture capital partners are making investment decisions from that fund.
“One of the problems with Southeast Asia is that there are so many countries and opportunities. These guys are extremely well networked and knowledgeable in that market.”
Telstra Ventures could make additional investments in funds, he added, but would be unlikely to do that in the US or Australia where it already oversees local teams. The Monk’s Hill investment could also potentially give Telstra an in for direct investments or acquisitions in the region.