Headline Asia Closes $145M Fund to Fuel Investments in Asia-Pacific Tech Startups

Despite current economic uncertainties and geopolitical challenges making funding for startups in Asia more difficult, Headline Asia has successfully closed its largest fund to date. The Tokyo- and Taipei-based venture capital firm announced the completion of Headline Asia Fund V, securing $145 million to invest in tech startups across the Asia-Pacific region.

Akio Tanaka, a co-founder and partner at Headline Asia, noted that the VC market is experiencing a cyclical downturn characterized by high interest rates, tightened liquidity, and cautious investor sentiment. This makes Headline Asia’s successful fundraise a significant achievement.

The new fund will focus on early-stage startups, from seed to Series A, with check sizes ranging from $1 million to $5 million. Headline Asia aims to support founders building companies targeting digital transformation and cross-border operations in Japan, Taiwan, and Southeast Asia, with selective investments in South Korea. Key areas of interest include e-commerce, logistics, fintech, IP, and AI.

Headline Asia Fund V has already invested in 17 companies, demonstrating its commitment to the region’s burgeoning tech ecosystem. These include:

• Newmo: A Japanese taxi and ride-sharing startup.
• Jenfi: A Singapore-based company providing revenue-based financing for digital businesses and startups in Southeast Asia.
• Pi-xcels: A Tokyo- and Singapore-based startup delivering NFC-enabled tech for merchants to send receipts to their customers.

The fund’s backers include a mix of public and private entities, such as Japan Investment Corporation (JIC), the National Development Fund of Taiwan (NDF), Korea Venture Investment Corporation (KVIC), and SME Support Japan.

Headline Asia differentiates itself by targeting investments that other investors might overlook, particularly those who prefer safer, profit-generating ventures over high-growth, high-risk tech startups. Tanaka emphasized the importance of early-stage valuations for generating outsized returns, especially in the current exit environment.

Tanaka also highlighted the firm’s excitement about opportunities in Japan, noting a shift towards global ambitions among Japanese startups. Headline Asia is keen to support both Japanese startups expanding internationally and startups from Southeast and North Asia aiming for global reach.

Headline Asia is part of the Headline global network, with regional offices in the U.S., Europe, and Latin America, managing approximately $4 billion in assets. Founded in 2008, Headline Asia manages around $420 million across its five funds and employs 10 investment professionals across Tokyo, Taipei, and Singapore.

This fund closure follows similar fundraises in the Asia-Pacific region, including Antler’s $72 million Southeast Asia fund, MindWorks Capital’s $220 million Pan-Asia fund, and Intudo’s $125 million across two funds.