Cocoon Capital, a venture capital firm based in Singapore, has announced the first close of its third fund, Cocoon Capital Fund III. They have secured $30 million in commitments so far, with a target of reaching $50 million.
The new fund will follow Cocoon Capital’s strategy of supporting the most promising tech startups in the region, especially in the early stages. According to a statement released on Wednesday, the firm plans to provide both funding and hands-on support to help these startups grow and expand globally.
The fund will invest in Southeast Asia’s early-stage B2B software and deep-tech startups. It will also consider opportunities in other parts of Asia and Australia on a selective basis.
Cocoon plans to invest in 20 companies over the next four to five years.
About 55 percent of the fund is set aside for follow-up investments up to Series A. This will help the firm continue supporting its top companies as they grow.
“We decided not to chase the hype around consumer tech or the latest trends like AI and blockchain,” said Michael Blakey, Managing Partner at Cocoon Capital.
Instead, we focus on often overlooked opportunities – founders solving challenging, less glamorous problems in areas like enterprise infrastructure, advanced manufacturing, robotics, and healthcare.
“Fund III focuses even more on that strategy. We’re not aiming to build the largest portfolio, but the most resilient and transformative one,” he added.
According to the statement, Cocoon has quietly built a strong history of supporting outstanding founders in underappreciated markets across Southeast Asia, often leading seed rounds before others recognized the potential.
This focused approach has allowed the firm to invest in companies leading the way in Southeast Asia’s enterprise and deep tech industries.
The firm’s approach is different from that of traditional early-stage investors. It leads every investment, takes a seat on the board, and follows a thorough 10-step process to assess governance, technical skills, the founders’ abilities, and the product’s potential, even at the seed stage.
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