UMG Idealab, the corporate venture capital vehicle set up by Mynamar-based conglomerate UMG Group, is preparing to raise a $100m fund, UMG founder and chairman Kiwi Aliwarga told DealStreetAsia today.
The unit was formed by UMG in 2015 and has so far predominantly taken part in pre-seed to series A-stage deals, though it announced its intention to expand into later-stage investments in late 2019.
The additional capital is being raised in order to support portfolio companies as they move to growth stage and require additional capital. UMG intends to approach external VC investors to commit to the fund, which it aims to close in 2022.
Aliwarga told DealStreetAsia: “We are studying it and fixing things internally, so we can later invite other funds [investors].
“I do not want to invite other people’s funds if we can’t make money for them. We want to be trusted partners. If we want to be successful, we will be successful together. That is my principle as a businessman.”
UMG Idealab functions as an incubator and accelerator and invests between $50,000 and $1m in each round in which it participates. Its existing portfolio companies include audio broadcasting platform Svara, language processing tool developer Botika and language learning app BahasaKita.
