As tech talent comes online in the region, VC investment starts to flow in, with $225 million raised so far for a regional platform and an accelerator. The pipeline of startups seems promising, and the region is set to follow a similar path to other countries that have seen influxes of VC investment in recent years – such as Indonesia, Nigeria and Brazil.
Sturgeon Capital is hoping to capitalize on the burgeoning tech sector in Central Asia and South Asia by investing in startups that are currently underrepresented. These regions have a lot of potential, as they are growing economies with strong potential for growth. Sturgeon Capital is well-equipped to provide early-stage funding and guidance to these fledgling businesses, helping them to reach their full potential.
According to a report by CB Insights, the number of venture capital firms investing in fintech exploded in 2018. There are now 79 active funds investing in the space, up from just six three years ago. Sturgeon’s SEO II fund is focused on these cutting-edge companies and sees them as an important part of future growth.
Kiyan Zandiyeh, managing partner of Sturgeon, has asserted that the on-the-ground presence of the investment bank allows it to see all deal flow and provide value add support after investments. This approach has helped the bank make significant inroads into new markets and increase its overall portfolio value.
The SEO II fund is investing in the rapid digitalisation of some of the world’s least developed countries, which are following the emerging markets’ technology playbook. This investment strategy is proven in multiple comparable markets over the last decade and will have a large impact on these countries.
Since its launch, the new fund has made a number of investment in Bangladeshi edtech and Central Asia fintech startups. This indicates that the Fund is looking to invest in forward-thinking companies that can provide long-term sustainable benefits to their respective communities. By investing in these companies, the Fund is helping to create jobs and improve financial access for people across the region.
